How does the loan amount influence your EMI payment ?

Are you wondering how much you will have to pay to the lender each month on your home loan? A home loan EMI calculator is an online tool that will help you in this estimation. EMI or Equated Monthly Installment is the sum of money you need to pay in exchange for loans from financial institutes and banks.

The home loan EMI calculator is an effective tool that helps you calculate your monthly installment on the LIC home loan amount. Not just EMI, you can also calculate the interest rate and repayment tenure using the same tool. All these are crucial variables of a loan and may vary according to the principal amount. Let us read more about the influence of loan amounts on the monthly installment.

How does the loan amount influence your EMI Payment?

The amount you will be paying back to the lender depends on the amount you have borrowed from them. The interest is charged on the principal amount. Your EMI payments depend directly on the borrowed amount. The greater the principal amount, the higher will be the monthly payments. The price of the property or the purpose of borrowing the money will decide to which extent the loan amount can be taken or availed. While buying a house, you can get up to 70% or 80% of the property price. If you borrow up to Rs. 30 lakh, you can get around 90% of the amount. If you borrow an amount between Rs. 30 to 75 lakh or even more, you get up to 80% of the property price, depending on the repayment capacity of the borrower which is derived from the various income sources.

What is the impact of the rate of interest on your installment?

Apart from paying the loan amount to the lender from whom you borrow, you also have to pay some additional money, which is the interest charged on the principal. In general, the interest rate on the LIC home loan is comparatively lesser than what is charged on an unsecured loan. It is a vital plus point of availing a home loan from a trustworthy lender. Some other factors that affect the rate of interest are how much do you earn and how fairly you have paid while repaying the previous debts. Those individuals who possess a good CIBIL score have better chances of getting a lower rate of interest. In case, your credit score is low, the rate of interest charged will be higher. A credit report is a significant criterion for determining your interest rate. The loan amount also determines the rate of interest that will be applicable, for a lower amount the interest will be higher, however for a large sum the interest rate will be comparatively low. For a loan of up to Rs. 30 lakh, interest remains the lowest, and it increases gradually with an increase in the loan quantum.

How does the repayment period impact your EMI payment?

Out of all other major categories of loans, the home loans have a longer tenure compared to other loans because the amount is usually higher, which the borrowers cannot repay in a short time. The maximum time you can get is a period of 30 years to repay, subject to your age of retirement and income from other sources.

What are the benefits of a home loan EMI calculator?



When you enter details like the loan amount, rate of interest, and the repayment tenure in the home loan EMI calculator, it will generate your EMI amount. It also shows your repayment graphically, including details about the break-up of each installment in terms of principal & interest payment separately, which will help you plan better. The various benefits that the EMI calculator gives to the customers are:

– Precise calculations

Taking a home loan is a big decision and must be planned carefully. An EMI calculator can help you vindicate by estimating the EMI correctly beforehand so that you can anticipate the amount to be paid every month, against the amount of loan you are going to avail.

– Fast calculations

Going with the traditional method, either through manual calculation, It will take hours to calculate the exact EMI amount with all the inclusions in place and can also be subject to several errors. An EMI calculator will help you fasten up this process and can also display different aspects with flexible amounts.

– Help you plan your monthly budget

Most of the people who earn a decent sum of money and come under the middle-income group have to plan things as per a strict budget. The EMI calculator can help you by anticipating the EMI on the loan amount, which can help you plan your finances.

As the world keeps moving towards more and more technical advancements, nowadays there is always a ready solution for the most complex problems. Calculating an EMI beforehand can be tricky, and not everyone has the resources and expertise to calculate them manually. To calculate EMI on your home loan, kindly visit Apnapaisa and check out the home loan EMI calculator. The loan amount has a direct influence on your EMI. The greater the amount, the higher will be the EMI payment. To calculate your EMI amount, check the calculator and the loan amount.

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