What is the EMI for 30 lakhs home loan?

Understanding how to calculate EMI before choosing a home loan is crucial. I took out a 30 lakh home loan two years back, but I faced a lot of issues as I wasn’t aware of it. I discussed this with a friend, who told me to use a 30 lakh home loan EMI calculator. 

Before I used the calculator, he also explained the process of calculating EMI through the conventional method using a formula. Here is how to do it. 

How to Calculate Home Loan 30 Lakh EMI?

The formula he showed me was used by banks to calculate EMIs. 

Here, 

P is the principal, R is the rate of interest, and N is the loan tenure. So, calculating the 30 lakh loan EMI for 5 years at an interest rate of 8.5% will be 

[3000000 * 8.5 *(1+8.75)^5 ] / [ (1+8.75)^5-1]

Using the same formula and the same rate of interest, I calculated the EMI for different tenures. Some of those are. 

30 Lakh Home Loan EMI For 10 years = Rs 37,196

30 Lakh Home Loan EMI For 15 years = Rs 29,542

30 Lakh Home Loan EMI For 20 years = Rs 26,035

30 Lakh Home Loan EMI For 25 years = Rs 24,157

30 Lakh Home Loan EMI For 30 years = Rs 23,067

You can also use the 30 lakh home loan EMI calculator to find the same. 

Home loans can be stressful especially with all the numbers and math that comes into play. You have to understand what is the principal amount, what is the interest amount and what is the interest rate. If you have received an approval on a home loan and want to know what is EMI for 30 lakhs home loan then I can help you out. By the way, you should not hesitate to use 30 lakhs home loan EMI calculators available on official bank websites.

The formula to calculate EMI by banks is as follows:

EMI = [ PxRx(1+R)^N ] / [ (1+R)^N-1 ]

P = principal amount

R = rate of interest 

N = loan tenure

Suppose you have been granted a home loan of Rs. 30 lakh for the tenure of 10 years at an interest rate of 6.75%. So the EMI calculation will be as follows:

EMI = [ PxRx(1+R)^N ] / [ (1+R)^N-1 ]

EMI = [ 3000000 x 6.75 x(1+6.75)^10 ] / [ (1+6.75)^10-1 ]

EMI = Rs. 34,370 per month

Similarly upon calculation of Rs. 30 lakh home loan EMI for 20 years, the EMI amount will be as follows:

EMI = [ PxRx(1+R)^N ] / [ (1+R)^N-1 ]

EMI = [ 3000000 x 6.75 x(1+6.75)^20 ] / [ (1+6.75)^ 20-1 ]

EMI = Rs. 22722

This is all you must know about EMI for 30 lakhs home loan.