How it works & FAQs
The math behind the numbers, plus answers to the questions we hear most often.
How is the EMI calculated?
EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1), where P is the loan principal, r is the monthly interest rate (annual ÷ 12 ÷ 100), and n is the tenure in months. We iterate month-by-month to build the amortization schedule and apply any annual prepayment to the outstanding balance.
Does prepayment actually save that much interest?
Yes — especially in the first third of the tenure when interest makes up the majority of each EMI. A ₹1L prepayment every year on a ₹50L / 20-year loan at 8.5% can cut the total interest by more than 22% and shorten the tenure by roughly 4 years.
Is the processing fee included in my EMI?
No. The processing fee is paid upfront at disbursal. We surface it separately under "Upfront fee" so you can see the true all-in cost of the loan alongside the EMI-based interest.
Which regime should I choose — fixed or floating?
Over 95% of Indian home loans today are floating-rate, benchmarked to the RBI repo rate. Floating rates reset when the benchmark changes — falling rates benefit you automatically; rising rates lengthen your tenure unless you increase the EMI.
Tax benefits on a home loan?
Under the old regime, interest up to ₹2L (self-occupied) is deductible under Sec 24(b), and principal up to ₹1.5L under 80C. Under the new regime (default from FY24), 24(b) is allowed only for let-out property.