Mortgage Calculator India 2023 Calculate EMI

Use this Online Mortgage Calculator to check your EMI over Loan.

Mortgage EMI (Loan Against Property EMI) is a monthly payment you make when you borrow money using your property as collateral. Your EMI includes both the principal amount (the loan itself) and the interest charged by the lender.

Your property remains as security until you repay the entire mortgage amount. This type of loan usually has lower interest rates compared to unsecured loans like personal loans. You can use the money for various personal needs.

For example, let’s say you’re a homeowner who needs money for your child’s education. You can use your property as collateral to get a Mortgage. The EMI you pay each month includes both the amount you borrowed and the interest.

Detailed Information About Mortgage In India

Mortgages in India are governed by the Transfer of Property Act, of 1882, and the Registration Act, of 1908. These laws establish the legal framework for property transactions and mortgages.

Types of Mortgages:

• In India, there are various types of mortgages, including:
  • Home Loans: Used for purchasing or constructing residential properties.
  • Loan Against Property (LAP): Also known as property-backed loans, where you pledge an existing property to obtain a loan.
  • Reverse Mortgage: Designed for senior citizens, allowing them to receive regular income against the value of their property.
  • Commercial Property Loans: Used for purchasing or developing commercial properties.

Loan-to-Value (LTV) Ratio:

Lenders in India often provide mortgages up to a certain percentage of the property’s value, known as the LTV ratio. It typically ranges from 70% to 90%. Borrowers need to contribute the remaining amount as a down payment.

Interest Rates:

Mortgage interest rates in India can be either fixed or floating. Fixed rates remain constant throughout the loan tenure while floating rates fluctuate based on market conditions.

Repayment Options:

Mortgages usually offer various repayment options, including equated monthly installments (EMIs), step-up or step-down EMIs, and flexible repayment schedules to suit borrowers’ financial situations.

Tax Benefits:

Borrowers in India can avail of tax benefits under sections 24(b) and 80C of the Income Tax Act, 1961, for the interest paid on home loans and the principal repayment, respectively.

Credit Score:

A good credit score is crucial when applying for a mortgage in India. Lenders assess your creditworthiness to determine your eligibility and interest rate. Before approving a mortgage, lenders conduct property valuation and legal checks to ensure the property’s authenticity and market value.

Mortgage and Real Estate Statistics in India

Aspect	Statistics
Mortgage Penetration	Annual growth rate of approximately 16%.
Housing Loans	A major segment of the mortgage market.
Loan Against Property	Rapidly expanding financial product.
Interest Rates	Varied depending on economic conditions.
Government Initiatives	Promoting affordable housing (e.g., PMAY).
Property Prices	Significant variation across Indian cities.
Default Rates	Generally low due to stringent criteria.
Loan Tenures	Ranged from 15 to 30 years.
Credit Scores	Critical for assessing borrower creditworthiness.
Tax Benefits	Incentives under sections 24(b) and 80C.

What is the Mortgage EMI Calculator?

The Mortgage EMI calculator is a tool that quickly calculates how much you need to pay the lender every month. You input the loan amount, interest rate, and the loan’s duration, and the calculator instantly tells you your monthly EMI.

How Does Mortgage EMI Calculators Work?

You can calculate the EMI using this formula: EMI amount = [P x R x (1+R)^N] / [(1+R)^N-1]. Here’s how it works:

P: The principal amount, which is the initial loan amount.
R: The interest rate set by the lender.
N: The loan tenure, measured in months.
For instance, if you borrow Rs 20 lakh with an 11% annual interest rate for five years, the EMI would be Rs 43,485. This EMI amount remains the same throughout the loan tenure.

How to Use the Mortgage Calculator?

• Slide the bar to choose the loan amount you need.
• Select the loan tenure in months.
• Adjust the interest rate by moving the slider.
• The calculator instantly displays your monthly EMI, total interest payable, and the overall amount you’ll repay.
• You can change these values anytime to recalculate your EMI.

Benefits of using the Mortgage Calculator

• Quickly know your EMI.
• Helps with budgeting and financial planning.
• Saves time by calculating EMI before applying for the loan.
• Conveniently used from home.
• Provides a detailed payment breakdown through an amortization table.

Benefits of Taking a Mortgage In India

• Lower interest rates compared to unsecured loans.
• Longer repayment tenure options.
• Choices between fixed and floating interest rates.
• Availability for both residential and commercial properties.
• Simplified documentation process.
• Flexible usage for various financial needs, like business financing, medical expenses, education, marriage, or a home down payment.

Mortgage Eligibility List

To qualify for a Mortgage, you need:

• A minimum annual income.
• To be at least 21 years old.
• A property valuation.
• Necessary financial documents.
• Both salaried and self-employed individuals can apply.

Documentation for a Mortgage

You’ll need these documents:

For Salaried Individuals:

• Loan application form.
• Passport-size photos.
• Identity and address proof.
• Latest salary slips.
• Form 16 from your employer.
• Bank statements for the last six months.

For Self-Employed Individuals:

• Loan application form.
• Passport-size photos.
• Identity proof.
• Proof of business existence.
• Certified financial statements for three years.
• Income tax returns for three years.
• Profit and loss statements for three years.
• Bank statements for the last three months.