Loan Calculator

Taking a loan is one of the biggest financial decisions you will make. Whether it is buying your first home, upgrading to a new car or funding a business — the numbers matter. A lot. Understanding exactly what you are signing up for before you sign anything could save you lakhs of rupees and years of financial stress.

Here is what most people do — they walk into a bank, hear the monthly EMI number, think it sounds manageable and sign the papers. What they miss is the total cost. A ₹30 lakh home loan at 9% for 20 years has an EMI of about ₹27,000. Sounds okay. But the total amount you repay? Over ₹65 lakhs. You are paying more than double the loan amount. Our Loan Calculator shows you the complete picture upfront.

How Loan Repayment Actually Works

Banks use the reducing balance method for loan repayment. In the first month of a ₹30 lakh loan, most of your EMI goes toward interest, very little toward the actual loan. As months pass and your principal reduces, more of each EMI goes toward principal and less toward interest.

This is exactly why prepaying a loan in the early years saves dramatically more than prepaying in later years. If you prepay ₹2 lakhs in year 2 of a home loan, you might save ₹6-8 lakhs in future interest. The same ₹2 lakh prepayment in year 15 saves much less because most of the interest is already paid.

Home Loan in India — What to Expect

Current home loan rates in India range from 8.5% to 10.5% depending on your bank, credit score and income. A ₹50 lakh home loan at 9% for 20 years gives an EMI of approximately ₹45,000. Total repayment comes to about ₹1.08 crore — you pay ₹58 lakhs in interest alone.

Your credit score matters enormously. A CIBIL score above 750 can get you rates that are 0.5% to 1% lower than someone with a score below 700. On a ₹50 lakh loan over 20 years, that 0.5% difference translates to roughly ₹4-6 lakhs in savings.

Personal Loan vs Home Loan vs Car Loan

Personal loans carry the highest rates — typically 10% to 24% — because they are unsecured. Home loans are cheapest at 8.5% to 10.5% because the property is collateral. Car loans fall in between at 7% to 12%. Always use secured loans when possible — the interest savings are massive.

Should You Choose Shorter or Longer Tenure?

Shorter tenure means higher EMI but significantly less total interest. Longer tenure means lower EMI but you pay a lot more over time. Choose the shortest tenure your monthly budget can comfortably support without financial stress.