How to use this calculator
- Enter the loan amount left and the years of EMIs left.
- Enter the old and the new interest rate from the bank’s message.
- Compare a higher EMI with a longer tenure.
Frequently asked questions
My home loan rate went up. Should I raise the EMI or the tenure?
Raise the EMI if you can afford it. In the example (₹30 lakh left, 15 years, 8.5% → 9.25%), the EMI goes from ₹29,542 to ₹30,876. Keeping the old EMI instead adds 1 year 7 months and ₹3.17 lakh of interest.
Can the bank change my tenure without asking?
RBI’s rules on resetting floating rates (circular RBI/2023-24/55, 18 August 2023) say lenders must give you the choice of a higher EMI, a longer tenure or both, and the option to switch to a fixed rate, with the charges told to you in advance.
What does a small rate rise do?
Even ₹441 more a month: a 0.25% rise on the example loan takes the EMI to ₹29,983, or adds 6 months to the tenure.
The rate came down. What should I do?
Keep paying the old EMI if you can — the loan ends sooner. On a 0.5% cut in the example, the same EMI finishes the loan in 14 years 3 months instead of 15 years.