What is the EMI for 12 lakh home loan?

The home loan 12 Lakh EMI (Equated Monthly Instalment) you pay each month depends on the interest rate per annum, and the loan tenure (in years/months).The EMI is calculated using the reducing-balance method with this standard formula:

EMI = P × r × (1+r)^N / [(1+r)^N − 1]

where:

• P = principal = Rs. 12,00,000

• r = monthly interest rate = (annual rate ÷ 12) ÷ 100

• N = total number of EMIs = loan tenure in months

For example, say the annual interest rate is 8.50% and the tenure is 20 years (240 months). Then monthly rate r = 8.50/12/100 ≈ 0.007083 (0.7083%). Putting these in:

EMI = 12,00,000 × 0.007083 × (1+0.007083)^240 ÷ [(1+0.007083)^240 − 1]

It gives an EMI of about Rs. 10,420 to Rs. 10,500 roughly.

If you change the tenure or interest rate, the EMI shifts:

• Shorter tenure → higher EMI (because you repay faster)

• Longer tenure → lower EMI, but total interest paid over life of loan is more

• Higher interest rate → higher EMI, vice versa

So with Rs. 12 lakh, at a typical HDFC offered rate and say 15 years, EMI for 12 lakh home loan might be somewhere around Rs. 11,400 to Rs. 11,800, while for 30 years it might drop closer to Rs. 9,200 to Rs. 9,500, depending on what interest rate you negotiate.

Using NoBroker, I recently computed the 12 lakh home loan EMI for 20 years of loan tenure at 8%  interest. This is due to the fact that I need to assess whether or not the monthly payment I would have to make will fit into my budget. However, I received an EMI of Rs 10,037 each month. I have shared the EMI amount for several years below.

How to Calculate 12 Lakh Home Loan EMI for 5 Years?

Every bank will have a different EMI for a Rs 12,00,000 home loan because of the following factors:

• Interest Rate 

• Loan Tenure

Using the NoBroker EMI calculator, if you calculate the EMI for 5 years at 8% interest, then the result will be as follows:

• Monthly EMI - Rs 24,332

• Principal Amount - Rs 1,200,000

• Total Interest - Rs 259,920

Alternatively, you can calculate the EMI for 5 years by following the below formula:

[PxRx(1+R)^N ] / [ (1+R)^N-1 ],

• Here, ‘P’ is the principal loan amount

• ‘N’ is tenure in months

• ‘R’ is the rate of interest

Using the above formula:

EMI = [1200000x8x(1+8)^5 ] / [ (1+8)^(5-1)] = Rs 24,332

I hope you now know what the EMI for a house loan of 12 lakhs will be.

The majority of Indian buyers of homes opt to obtain a home loan. While some homebuyers may favour putting down a sizable sum of money to reduce their EMI load, others may decide to apply for a large-ticket loan for a variety of reasons, including a lack of funds. Knowing your Rs. 12 lakh house loan EMI can make it easier for you to better manage your expenses. Let's study what is 12 Lakh home loan EMI for 10 years.

What is the EMI for a 12 Lakh home loan for 10 years?

Monthly home loan EMI for Rs.12 Lakh for a period of 10 years with an interest rate of 7.50% can be Rs.14,244

What is 12 Lakh home loan EMI for 15 years?

Monthly home loan EMI for Rs.12 Lakh for a period of 15 years with an interest rate of 7.50% can be Rs.11,124

What is 12 Lakh home loan EMI for 20 years?

Monthly home loan EMI for Rs.12 Lakh for a period of 20 years with an interest rate of 7.50% can be Rs.9667. So now you know what is the EMI for 12 Lakh home loan.

What are the requirements for a 12 lakh home loan?

• You must be at least 18 years old to be eligible for the loan.

• Your minimum income must be at least 25,000 if you work as a salaried employee.

• You must have a credit score of at least 750 to have your home loan application approved.

How does home loan EMI breakdown work?

As interest and principal are repaid, the total amount of a loan reduces over time. Interest builds up at a rate that eventually becomes negligible and progressively decreases below the principal. There are a few exceptions to the rule of a constant EMI each month, though.

A lump sum payment made by you on an existing loan is applied to the balance still owing, reducing the EMI. You now have the option to keep the EMI the same while shortening the loan term in this situation. If you select a variable interest rate, the EMI adjusts in response to movements in the market.

I must have guided you well on a 12 lakh home loan EMI for 10 years.