Simple and Effective Ways to Calculate Housing Loan EMI

Calculating the housing loan EMI is crucial for two reasons. First, it helps you make an informed decision. Second, it makes you a happy borrower with proper knowledge of the liabilities. 

EMI calculation can be straightforward when you know the best way to do it. Worry not; this article is drafted to make your task easy. Read on to learn about the best ways to calculate home loan, such as PNB Housing home loan, EMI and get some foolproof tips to increase your housing loan eligibility.     

Simple and Effective Ways to Calculate Housing Loan EMI

Here is a step-by-step guide to calculating PNB Housing home loan EMI: 

Fix the Loan Amount

The loan amount, a.k.a. principle, plays a crucial role in determining your housing loan eligibility. Also, the loan amount depends directly on your net annual income. Indian lenders usually approve loan amounts of up to five times the borrower’s net annual income. Remember, the loan amount must not exceed 90% of the net property value. 

Besides net annual income, housing loan eligibility also depends on many factors like income stability, nature of income, and overall repayment capability. Choosing the right loan amount is important because the EMI depends on it. If your loan amount is high, the EMI amount will also be high and vice versa.  

Decide the Loan Term

Some lenders, such as PNB Housing, provides a home loan repayment term of up to thirty (30) years. However, it is wise to know that an extended term also means that you will have to shell out more interest. Indian lenders generally allow loan repayments until the borrower attains the age of sixty (60). Hence, if your age is 25 at the time of loan application, you can close the loan much before reaching the maximum age. However, if your age is 40, you can get no more than twenty (20) years to repay the loan.

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While calculating the housing loan eligibility, lenders add your existing debt to calculate the debt-to-income ratio. Ideally, a borrower must keep their total debt below 50% of their net monthly income. However, if the EMI of a home loan, such as PNB Housing home loan, goes beyond the limit, the lender may decrease the loan amount or increase the loan term. So, you must choose a tenure that helps you keep your debt within the prescribed limit of 50%.

Evaluate the Interest Rate

Lenders often specify their criteria for offering the best rates. So, while some lenders offer discounted rates and relaxed housing loan eligibility to salaried professionals, others may give deep discounts to borrowers with a high credit score. Also, some lenders offer special benefits to women applicants.

Interest rates can be fixed or floating. For example, if you opt for a PNB Housing home loan, your EMI and tenure will remain the same as mentioned in your loan agreement. But, if you choose a floating-rate loan, the EMI and/or tenure will change depending on the MCLR or Marginal Cost of Lending Rate.

Hence, before choosing a lender, it is wise to inquire about the interest rate and pick the right type.

How to Calculate Home Loan EMI

PNB Housing loan EMI Calculator is hassle free in calculating your EMI’s quickly and conveniently. The fact that the calculator is free to use makes it more attractive. You can enter the loan amount, tenure, and interest rate to check your net liability arising from a home loan.


Having a planned approach is essential when you plan to avail of a home loan. Once you know the housing loan eligibility and the best way to calculate the EMI, you are all set to claim the loan amount and fulfill the most cherished dream of your life.

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