IIFL Finance Home Loan EMI Calculator

How to Use the IIFL Finance Home Loan EMI Calculator Online?

Here is a detailed guide on how to use the IIFL finance home loan calculator on Urban Money, along with its standard formula and some examples:

• Scroll up the page to use the IIFL Home Loan Calculator section. 
• Enter necessary information, such as the loan amount, repayment tenure and interest rate.
• The calculator will display the exact EMI amount, the total interest payable, and a visual representation of the breakdown.
• You can easily change the parameters to compare various repayment possibilities and finally decide on the best plan. 

Urban Money uses the standard IIFL home loan EMI calculator formula, [P x R x (1+R) N] / [(1+R) N-1], to give reliable and accurate results.

Here,

• P = Principal Loan Amount 
• R = Monthly Interest Rate 
• N = Loan Tenure (In Months)

Using this formula, the EMI amount payable for the IIFL Finance home loan EMI calculator can be easily calculated. Here are some examples.

Example 1

Principal Amount = ₹10,00,000

Annual Interest Rate = 9% 

Tenure = 15 Years 

Tenure in Months = 15 years × 12 = 180 months

Monthly Interest Rate = 9%/ 12 = 0.0075%

EMI = 10,00,000 * 0.0075 * (1+0.0075) 180 / (1+0.0075) 180 -1 = INR 10,143

Total Interest Payable: ₹8,26,720

Total Payment: ₹18,26,720

Example 2

Principal Amount = ₹25,00,000

Annual Interest Rate = 8.75% 

Tenure = 20 Years 

Tenure in Months = 20 years × 12 = 240 months

Monthly Interest Rate = 8.75%/ 12 = 0.00729%

EMI= 25,00,000 × 0.00729 × (1+0.00729) 240 / (1+0.00729) 240 – 1 = INR 22,139

Total Interest Payable: ₹28,13,360

Total Payment: ₹53,13,360

Benefits of IIFL Finance Home Loan Calculator

Here are some major advantages of using the IIFL Finance Home Loan Calculator before acquiring the loan:

Quick EMI Calculation

The IIFL Finance Home Loan Calculator gives instant results when you enter the loan amount, interest rate, and tenure. It removes the need for manual math or Excel formulas, saving time and effort, especially in the early stages of planning a home loan.

Easy Financial Planning

The EMI calculator helps you plan your monthly expenses more effectively. You can see whether the repayment fits within your budget and adjust accordingly before taking a loan, protecting you from unexpected financial strains.

Flexible Customisation

You can easily adjust the loan amount, interest rate, or tenure to explore various repayment combinations. The calculator lets you test scenarios without risk, helping you plan for short and long-term purchases.

Compare Different Loan Scenarios

The IIFL housing loan calculator effortlessly allows you to compare different loan scenarios. It enables you to make well-informed decisions and choose the most cost-effective and manageable loan option, such as a 15-year or 20-year loan tenure.

Visual Representation

The IIFL Finance home loan EMI calculator visually breaks down principal and interest through charts or graphs. These visuals make it easier to understand how much of your EMI goes toward interest in the early years versus principal in later years. It adds clarity to your loan’s financial structure.

Factors Affecting IIFL Finance Home Loan EMIs

Here are some common factors that will affect your IIFL Finance Home Loan EMIs:

Loan Amount and Tenure

The principal amount you borrow directly impacts your EMI. A higher loan amount leads to a higher EMI, while a lower loan amount results in a more manageable monthly payment. In contrast, a longer tenure results in a lower EMI, while a shorter tenure means higher EMIs.

Interest Rate

The interest rate is a key factor in determining your EMI. Even a slight change in the interest rate can significantly affect the EMI and the total repayment over time. A fixed interest rate can help you prevent unexpected financial expenses, as floating interest charges can change heavily due to market conditions. 

Credit Score

A higher credit score increases your chances of getting a loan at a lower interest rate, resulting in lower EMIs. This score proves your creditworthiness and helps you get loans that work in your favour.

Prepayments and Part Payments

Making part payments during the loan tenure can reduce your outstanding principal, lowering your future EMIs or shortening the loan duration. IIFL may offer flexible prepayment options, which can help manage EMIs better in the long run.

Property Type

The acquired property’s nature, location, and market value can influence the loan amount sanctioned and the interest rate applied. Premium or well-located properties may attract better terms, indirectly impacting your EMI.

Tips for Reducing Your IIFL Finance Home Loan EMI

Here are some ways you can reduce your IIFL Home Loan EMI and get the loan in your preferred terms and conditions:

• Increase the loan tenure. This will automatically reduce the monthly EMI burden by spreading payments over a longer period. 
• If another lender offers a lower interest rate than your existing IIFL home loan, you can opt for a home loan balance transfer. 
• You can make part-payments on loan to reduce the outstanding principal, which can shorten the tenure or lower your EMI amount.
• If you expect your income to grow over time, ask about a step-up EMI plan, where EMIs start low and gradually increase. 
• Try to apply for home loans only when the market is low, such as during the RBI repo rate cuts. This will help you reduce your EMI amounts massively.