Buying a house is a financial goal and to accomplish it, a home loan can come to your aid. A loan provides financial resource. With an Equated Monthly Instalment (EMI) facility, repayments become comfortable.

That said, before you avail of a home loan, as a prudent loan planning exercise, always assess how much the EMI will be. After all, availing a home loan is an important financial decision.
The EMI (or Equated Monthly Instalment) of your loan consists of the principal portion and the interest. Therefore, EMI = principal amount + interest paid on the loan.

The EMI, usually, remains fixed for the entire tenure of your loan and it is to be repaid over the tenure of the loan on a monthly basis. During the initial years of your loan tenure, you pay more towards interest. Gradually, as you repay the loan, a higher portion is adjusted towards the principal component. This is because EMIs are computed on a reducing balance method, which works in your favour as a borrower.

Remember, the interest rate and your loan tenure are the vital deciding factors for your loan EMI.