Question 1

How is Home Loan EMI calculated in India?

Accepted Answer

In India, home loan EMIs are typically calculated using the reducing balance method. This means interest is charged only on the outstanding principal amount. Our tool uses standard banking algorithms (P × r × (1+r)^n / ((1+r)^n - 1)) to provide SBI and HDFC-grade accuracy.

Question 2

What are the common land measurement units in India?

Accepted Answer

Land units vary by state. Common units include Bigha, Guntha, Kanal, Ground, Cent, and Ankanam. Our Land Converter handles these regional variations, including conversions to standard Square Feet and Meters.

Question 3

Can I save money by pre-paying my home loan?

Accepted Answer

Yes, even small monthly pre-payments can significantly reduce your loan tenure and total interest outgo. Use our Pre-payment Tool to see how much you can save by paying extra against your principal.

Question 4

Is there a difference between flat and reducing balance interest rates?

Accepted Answer

Yes. A flat interest rate is charged on the original loan amount throughout the tenure, while a reducing balance rate (standard in India) decreases as you pay off the principal. Reducing balance is generally much cheaper.

Question 5

What is the benefit of using a land converter for Indian real estate?

Accepted Answer

Indian real estate listings often use local units like Bigha or Biswa. A converter ensures you understand the exact area in standard units, preventing overpayment and ensuring legal transparency during property transactions.

Question 6

How do interest rate changes affect my home loan EMI?

Accepted Answer

Most Indian home loans are floating rate. If Repo Rates increase, banks may increase your EMI or, more commonly, extend your loan tenure. Regularly check your amortization schedule with our tool to stay informed.

Property & Loans

Home Loan EMI

Pre-payment Tool

Land Converter

Frequently Asked Questions