Home Loan EMI Calculator by Interest First

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10489
852215
1000000
1852215
852 K
(8 Lac)
15
Year
1,000,000
568 K
(5 Lac)
Year
Original
10489 will be EMI for 1000000 (1 m/10 Lac) Loan Amount for 15 Year Loan Tenure at 9.00% Rate of Interest.

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Home Loan EMI by Interest First

An Home Loan EMI by Interest First is a type of loan where your initial payments cover only the interest, leaving the principal amount unchanged. During this period, your EMIs are lower since you’re only paying interest.After the interest-only period ends, your EMIs will include both principal and interest, resulting in higher payments.This option is ideal for those who want lower EMIs at the beginning of their loan repayment. Use our Home Loan EMI Calculator by Interest First to plan your loan repayments and stay on top of your finances. Find accurate breakdowns of your payments, interest, and principal to plan your home loan better.

Calculate Home Loan EMI by Interest First

  1. Enter loan details including loan amount, interest rate, tenure, choose months or years, and balloon payment amount for your home loan EMI by interest first to calculate home loan EMI.
  2. Click Calculate to view your initial home loan EMI breakdown and calculate home loan EMI based on the inputs.
  3. Customize payment options with three inputs to explore and calculate your home loan EMI by interest first options.
  4. Add the number of extra EMIs per year to reduce and calculate your home loan EMI.
  5. Increase EMIs by a percentage to manage and calculate your home loan EMI by interest first effectively.
  6. Enter lump sum payment in a specific year to lower or calculate your home loan EMI, or reduce the tenure of your home loan EMI by interest first.
  7. Adjust inputs as needed and click Recalculate to update and calculate your home loan EMI, tenure, and interest dynamically.

Interest First EMI formula

To calculate Home Loan EMI, use the Interest First EMI formula for precise results. This calculation helps you understand your repayment obligations clearly.
I O E M I = P × r 12
E M I = P × r ( 1 + r ) n ( 1 + r ) n 1
EMI = Equated Monthly Installments
P = loan amount.
IOEMI = Interest only period EMI.
r = monthly interest rate.
n = total number of monthly installments.

Eligibility Criteria for Home Loan EMI by Interest First

Stable Income: Applicants should have a stable and verifiable source of income, either through salaried employment or self-employment, to demonstrate their ability to repay the home loan EMI by interest first.
Creditworthiness: A good credit score is essential to qualify for a home loan EMI by interest first, reflecting a history of responsible credit behavior and repayment.
Employment Stability: Lenders typically require applicants to have a consistent employment history, ensuring a reliable income stream to support home loan EMI repayments.
Property Compliance: The property being financed through the home loan EMI must meet the lender's criteria, including clear title deeds, acceptable valuation, and compliance with local regulations.

Home Loan EMI Calculator by Interest First FAQ

How does Interest First EMI differ from a regular EMI?
In a regular EMI, both principal and interest are paid together from the start of the loan tenure, resulting in fixed payments that include both components. In an interest first EMI, you pay only the interest during an initial period, and principal repayment starts only after this interest-only phase ends. This structure initially reduces monthly payments but results in higher payments once the principal repayment phase begins.
What are the benefits of choosing an Home Loan EMI by Interest First?
An home loan EMI by interest first offers lower initial EMIs, improving cash flow management during the early years. It’s particularly advantageous for those expecting higher future income or managing other financial commitments, as it provides lower initial payments. Additionally, the saved funds can be invested elsewhere, maximizing financial opportunities.
What are the drawbacks of choosing an Home Loan EMI by Interest First?
An home loan EMI by interest first may result in higher total interest costs because the principal remains unchanged initially. Additionally, if property values decline or financial situations worsen, selling or refinancing the property can be challenging during the principal repayment phase.
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