EMI Calculator — Home, Car & Personal Loan (2026)
Calculate your exact monthly EMI with the standard reducing-balance formula used by Indian banks. Updated for October 2026 — repo now 5.50%; repo-linked home loans started at 7.25% p.a. before the hike.
How EMI is calculated
Banks use the reducing-balance method. Each EMI first covers the month's interest on the outstanding principal; the remainder reduces the principal.
P = loan amount r = annual rate ÷ 12 ÷ 100 n = months
Example: ₹10 lakh loan at different rates (20 years)
| Interest rate | Monthly EMI | Total interest paid |
|---|---|---|
| 7.25% (best home loan, Jul 2026) | ₹7,904 | ₹8,96,882 |
| 8.50% | ₹8,678 | ₹10,82,776 |
| 9.00% | ₹8,997 | ₹11,59,342 |
| 10.50% | ₹9,984 | ₹13,96,116 |
Current loan interest rates in India (October 2026)
With the RBI repo rate raised 25 bps to 5.50% in the October 2026 MPC meeting (lenders are resetting floating rates ~0.25% higher):
| Loan type | Typical rate range |
|---|---|
| Home loan (repo-linked) | 7.25% – 8.7% pre-hike (SBI from 7.25%); resetting ~0.25% higher |
| Car loan (new) | 8.4% – 10.5% (SBI 8.40–9.35%) |
| Two-wheeler loan | 10% – 14% |
| Gold loan | 8.5% – 14% (banks) |
| Personal loan | 10% – 24% (CIBIL-dependent) |
Frequently asked questions
Does a higher CIBIL score lower my EMI?
Yes. Banks price loans by credit tier — a 750+ score can get home loans near the advertised floor rate, while lower scores pay 1–2% more. The FinCalix app includes a free CIBIL-based rate simulator.
Is prepaying a floating-rate loan free?
Yes — RBI prohibits foreclosure/prepayment charges on floating-rate loans to individual borrowers. Fixed-rate loans may carry a charge of 2–4%.
Should I pick a longer tenure for a smaller EMI?
A longer tenure lowers the EMI but sharply raises total interest: ₹10L at 9% costs ₹5.6L interest over 10 years but ₹11.6L over 20 years. Choose the shortest tenure whose EMI fits your budget (banks cap EMIs near 50% of take-home pay).
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