Planning your home loan can feel confusing, let’s make your home loan planning simple! The PNB Housing Finance Home Loan EMI Calculator shows you a precise estimate of your monthly installments, making it an invaluable resource for anyone exploring home loan options. By breaking down the costs step by step, it not only simplifies the borrowing process but also enhances your financial decision-making.
Get low-interest home loans at PNB with Credit Dharma!
How is PNB Housing Finance Home Loan EMI Calculated?
PNB Housing Finance, like most banks, calculates Home Loan EMIs (Equated Monthly Installments) using the standard EMI formula:
EMI = [P x R x (1+R)^N] / [(1+R)^N – 1]
Where:
- P = Loan Amount
- R = Monthly Interest Rate (Annual Rate ÷ 12)
- N = Loan Tenure in Months
Case Study
Let’s consider a practical example. Here are the loan details:
- Principal amount (P): ₹30,00,000
- Annual interest rate: 8.50%
- Loan tenure: 20 years (240 months)
| Step | Action | Formula | Result |
|---|---|---|---|
| 1 | Convert annual interest to monthly | r = 8.50% ÷ 12 | r = 0.0070833 |
| 2 | Calculate total months | n = 20 × 12 | n = 240 |
| 3 | Apply the EMI formula | EMI = 30,00,000 × [ 0.0070833 × (1 + 0.0070833)²⁴⁰ ] ÷ [ (1 + 0.0070833)²⁴⁰ - 1 ] | ₹28,456per month |
PNB Housing Finance Home Loan Amortization Schedule
Home loan amortization refers to the process of gradually paying off your loan over time through regular payments. These payments are usually made monthly and cover both the interest on the loan and a portion of the principal (the original amount you borrowed).
In the beginning, a larger portion of your monthly payment goes toward paying off the interest, while a smaller part goes toward reducing the loan amount (principal).
Over time, as you continue making payments, the balance shifts, and more of your payment goes toward the principal.
| Year | Opening Balance | Interest paid during the year | Principal repaid during the year | Closing Balance |
|---|---|---|---|---|
| 1 | ₹3000000 | ₹290251 | ₹51215 | ₹2948785 |
| 2 | ₹2948785 | ₹285029 | ₹56437 | ₹2892348 |
| 3 | ₹2892348 | ₹279273 | ₹62193 | ₹2830155 |
| 4 | ₹2830155 | ₹272931 | ₹68535 | ₹2761621 |
| 5 | ₹2761621 | ₹265942 | ₹75524 | ₹2686097 |
| 6 | ₹2686097 | ₹258240 | ₹83226 | ₹2602871 |
| 7 | ₹2602871 | ₹249753 | ₹91713 | ₹2511158 |
| 8 | ₹2511158 | ₹240401 | ₹101065 | ₹2410093 |
| 9 | ₹2410093 | ₹230094 | ₹111372 | ₹2298721 |
| 10 | ₹2298721 | ₹218737 | ₹122729 | ₹2175992 |
| 11 | ₹2175992 | ₹206221 | ₹135245 | ₹2040748 |
| 12 | ₹2040748 | ₹192430 | ₹149036 | ₹1891711 |
| 13 | ₹1891711 | ₹177231 | ₹164235 | ₹1727477 |
| 14 | ₹1727477 | ₹160483 | ₹180983 | ₹1546494 |
| 15 | ₹1546494 | ₹142027 | ₹199439 | ₹1347054 |
| 16 | ₹1347054 | ₹121689 | ₹219777 | ₹1127277 |
| 17 | ₹1127277 | ₹99276 | ₹242190 | ₹885087 |
| 18 | ₹885087 | ₹74579 | ₹266888 | ₹618200 |
| 19 | ₹618200 | ₹47362 | ₹294104 | ₹324096 |
| 20 | ₹324096 | ₹17370 | ₹324096 | ₹0 |
Check Out: Punjab National Bank Home Loan Interest Rates 2025
Factors Affecting PNB Housing Finance Home Loan EMI
- Loan Amount – Higher principal amounts lead to higher EMIs
- Interest Rate – Even small changes in interest rates significantly impact EMI amounts
- Loan Tenure – Longer repayment periods reduce EMI amounts but increase total interest paid
- Repayment Type – Fixed vs. floating interest rate options affect EMI stability
- Credit Score – Higher scores may qualify for lower interest rates, reducing EMIs
- Income Level – Affects loan eligibility and maximum EMI the bank will allow
- Down Payment Size – Larger down payments reduce principal amounts and EMIs
- Property Value – Affects loan-to-value ratio and interest rate determination
- Occupation Category – Special rates for select professions (doctors, government employees)
- Age of Applicant – Affects maximum loan tenure offered and consequently EMI amount
How to Use Credit Dharma’s Home Loan EMI Calculator?
- Enter Loan Amount – Slide or type your desired loan amount (e.g., ₹88,00,000)
- Select Interest Rate – Set the current PNB Housing Finance rate (e.g., 8.40% p.a.)
- Choose Tenure – Pick your preferred repayment period in years (e.g., 25 years)
- View Results:
- Monthly EMI: Your fixed monthly payment (₹72,947)
- Total Interest: Amount paid as interest over loan term (₹1,30,84,241)
- Total Repayment: Principal plus interest (₹2,18,84,241)
- Visual Breakdown: Pie chart showing principal vs. interest ratio
Punjab National Bank Home Loan Interest Rates
Punjab ational Bank provides home loans with interest rates that reflect current market conditions and are influenced by factors like your CIBIL score. You can choose a fixed rate or a floating rate, according to your financial situation.
PNB Interest Rate For Home Loans upto 35 Lakh Based on CIBIL Score
Explore PNB’s competitive home loan interest rates for amounts up to ₹35 lakh, determined by your CIBIL score and creditworthiness.
| Credit Score | Salaried | Non-Salaried |
|---|---|---|
| >=825 | 8.5% to 9% | 8.8% to 9.3% |
| >800 to 825 | 8.8% to 9.3% | 8.95% to 9.45% |
| >775 to 799 | 9.1% to 9.6% | 9.65% to 10.15% |
| >750 to <=775 | 9.25% to 9.75% | 9.8% to 10.3% |
| >725 to <=750 | 9.55% to 10.05% | 10.25% to 10.75% |
| >700 to <=725 | 9.85% to 10.35% | 10.55% to 11.05% |
| >650 to <=700 | 10.25% to 10.75% | 10.75% to 11.25% |
| upto 650 | 10.25% to 10.75% | 10.75% to 11.25% |
| NTC Cibil >=170 | 10.25% to 10.75% | 10.65% to 11.15% |
| NTC Cibil <170 | 10.15% to 10.65% | 10.55% to 11.05% |
PNB Interest Rate For Home Loans above 35 Lakh Based on CIBIL Score
Discover the latest PNB home loan interest rates for amounts exceeding ₹35 lakh, tailored to your CIBIL score and financial profile.
| Credit Score | Salaried | Non-Salaried |
|---|---|---|
| >=825 | 8.5% to 9% | 8.8% to 9.3% |
| >800 to 825 | 8.8% to 9.3% | 8.95% to 9.45% |
| >775 to 799 | 9.2% to 9.7% | 9.8% to 10.3% |
| >750 to =775 | 9.35% to 9.85% | 10.15% to 10.65% |
| >725 to =750 | 9.7% to 10.2% | 10.3% to 10.8% |
| >700 to =725 | 10.05% to 10.55% | 10.75% to 11.25% |
| >650 to =700 | 10.45% to 10.95% | 10.95% to 11.45% |
| upto 650 | 10.45% to 10.95% | 10.95% to 11.45% |
| NTC Cibil >=170 | 10.45% to 10.95% | 10.85% to 11.35% |
| NTC Cibil <170 | 10.35% to 10.85% | 10.75% to 11.25% |
Benefits of PNB Housing Finance Home Loan EMI Calcualtor
- Quick Estimation: Instantly calculates your EMI, saving you time on manual computations.
- Better Budgeting: Helps plan monthly outflows for realistic budgeting.
- Multiple Scenarios: Try different loan amounts, tenures, and interest rates to find the best EMI.
- Easy Comparison: Compare EMIs across different rates and tenures to see the impact of changes.
- Transparent Planning: Clearly shows how principal and interest evolve, aiding informed decisions.
How Does PNB Housing Finance Home Loan EMI Help in Planning Home Purchase?
- Budgeting Monthly Expenses: Fixed EMI amount streamlines monthly budget planning.
- Long-Term Financial Planning: Known EMIs support informed savings and future expense planning.
- Affordability Assessment: EMI calculations help determine the maximum affordable loan amount.
- Loan Tenure Flexibility: Adjusting the loan tenure tailors the EMI to your financial capability.
- Interest Rate Clarity: EMI breakdown reveals the total interest cost over the loan term.
- Prepayment and Savings: Clear EMI structure aids in planning prepayments to reduce overall interest.
- Avoiding Overborrowing: Defined EMIs ensure borrowing remains within sustainable repayment limits.
- Tax Benefits Awareness: EMI components clarify deductions available under relevant tax sections.
Check Out: Home Loan Budgeting Calculator
How to Select PNB Housing Finance Home Loan EMI Payment Date?
- Align with Payday: Choose a date that coincides with your payday or salary receipt to ensure timely repayment without financial strain.
- Avoid Overlapping Expenses: Select a date that does not coincide with other major monthly expenses (e.g., rent, utilities) to prevent cash flow issues.
- Bank’s Flexibility: Check if PNB Housing Finance offers flexibility in choosing the EMI due date. Some banks allow you to set a custom date within a specified range.
- Auto-Debit Option:Opt for an auto-debit facility to avoid missing payments. Ensure the selected date aligns with your bank account’s availability of funds.
- Review and Adjust: Regularly review your financial situation and adjust the EMI date if needed, especially if your income or expenses change significantly over time
Suggested Read: When Does Home Loan EMI Start?
Impact of Tenure on Home Loan EMI
Your loan tenure directly shapes both your monthly burden and long-term financial commitment. Stretching your repayment period means breathing room in your monthly budget, but ultimately costs you more.
- 10-year tenure: Hefty monthly payments that clear your debt faster with minimal interest burden
- 20-year tenure: The middle path – manageable EMIs with reasonable total interest costs
- 30-year tenure: Light on your monthly budget but substantially heavier on your lifetime wealth
Take a ₹50 lakh loan at 8.5% interest: doubling your tenure from 15 to 30 years cuts your monthly payment nearly in half (from ₹49,237 to ₹38,590), but you’ll pay an additional ₹38.9 lakhs in interest over the life of the loan.
Your choice should reflect your personal financial reality. High earners with stable jobs might benefit from aggressive short-tenure loans. Young professionals with growing income trajectories might start with longer tenures and prepay strategically as their earnings increase.
Check Out: Home Loan Tenure Calculator
Impact of the Type of Interest Rate on Home Loan EMI
The interest rate type you choose for your home loan fundamentally alters your EMI experience and financial planning strategy over the loan duration. Borrowers typically face two main options: fixed and floating rates.
Fixed interest rates lock in your EMI amount for the entire loan tenure, providing certainty and protection against market fluctuations. Your monthly payments remain unchanged regardless of economic conditions, making budgeting predictable. However, this security comes at a premium—fixed rates are typically 1-2.5% higher than initial floating rates.
- Predictability: Fixed EMIs create stable, long-term financial planning
- Protection: Shields borrowers from rising interest rate environments
- Premium cost: Higher starting rates compared to floating options
- Opportunity cost: No benefit when market rates decline
Floating interest rates, linked to external benchmarks like the repo rate, fluctuate with market conditions. Your EMI might decrease during economic downturns or increase during inflationary periods. This creates potential savings opportunities but introduces uncertainty into your financial planning.
- Variability: EMIs can increase or decrease based on market conditions
- Lower initial cost: Generally more affordable starting rates
- Market alignment: Benefits from interest rate reductions
- Risk exposure: Vulnerable to significant EMI increases during rate hikes
Suggested Read: Fixed vs. Variable vs. Hybrid Home Loan Interest Rates
Impact of Downpayment on Home Loan EMI
Your downpayment decision significantly shapes your home loan journey and monthly financial commitments. A larger initial payment reduces your loan amount, directly lowering your EMIs and total interest burden over the loan term.
Most banks require a minimum downpayment of 15-20% of the property value. However, going beyond this minimum threshold creates substantial long-term benefits that extend beyond just lower EMIs.
- Lower principal amount: Directly reduces the base on which interest is calculated
- Reduced LTV ratio: Improves loan eligibility and may secure better interest rates
- Decreased debt burden: Lowers your debt-to-income ratio, improving financial health
- Enhanced equity position: Provides immediate equity cushion in your property
Consider a ₹1 crore property: with a 20% downpayment (₹20 lakhs), your loan amount would be ₹80 lakhs. If you stretch to a 30% downpayment (₹30 lakhs), your loan drops to ₹70 lakhs. At 8.5% interest over 20 years, this higher downpayment reduces your monthly EMI by ₹6,474 and saves approximately ₹15.5 lakhs in interest over the loan term.
Suggested Read: Things to Check Before Moving into a New Home
How Much Salary Should Go Towards Home Loan EMI?
Your optimal EMI-to-income ratio depends on your specific financial situation and location:
- Conservative approach: 25-30% for those with variable income or additional debts
- Moderate approach: 30-35% for those with stable income in mid-tier cities
- Aggressive approach: 35-40% for high-income earners in expensive metro areas
Consider a professional earning ₹1 lakh monthly: their home loan EMI ideally shouldn’t exceed ₹30,000-₹40,000. Exceeding this threshold can lead to financial strain, inadequate emergency savings, and compromised lifestyle quality.
Beyond the percentage-based rule, analyze your complete financial picture. Account for existing debts, regular expenses, savings goals, and future income prospects before committing to an EMI. Your debt-to-income ratio (DTI), which includes all debt payments, should ideally remain below 50% of your income.
Suggested Read: Is a ₹2 Crore Home Loan Consuming 40-50% of Your Salary a Bad Idea?
What Happens if You Miss PNB Housing Finance Home Loan EMI Payment?
Missing a PNB Housing Finance home loan EMI (Equated Monthly Installment) can have several serious consequences:
- Late Fees and Penalties: Increased charges, adding to your loan burden.
- Negative Impact on Credit Score: A missed payment can lower your credit score, affecting future loan approvals.
- Increased Financial Burden: Accrued interest and longer loan tenure.
- Legal Actions and Asset Seizure: Prolonged defaults may lead to repossession and auction of your property.
Suggested Read: Home Loan Repayment Strategies
What Happens if PNB Housing Finance Home Loan EMI Payment Gets Bounced?
When your PNB Housing Finance home loan EMI payment bounces, several immediate consequences follow, affecting both your finances and credit standing:
- Bounce charges: The bank levies penalty fees ranging from ₹500-₹1,500 per failed payment
- Late payment fees: Additional penalties of 1-2% on the EMI amount apply after the grace period (typically 3-5 days)
- Collection calls: Bank representatives begin contacting you for payment resolution
- Credit score impact: Each bounce is reported to credit bureaus, potentially reducing your score by 50-80 points
- CIBIL record: The payment failure is recorded in your credit history for 7 years
In case of an EMI bounce, immediately contact PNB Housing Finance to arrange an alternative payment method and ensure sufficient funds for future payments. If non-payment continues for 90 days, the loan will be classified as a Non-Performing Asset (NPA), leading to a formal recovery process, issuance of legal notices, and possible foreclosure under the SARFAESI Act.
Can You Stop PNB Housing Finance Home Loan EMI Payment for a Few Months?
Yes, PNB Housing Finance does offer options to temporarily pause your home loan EMI payments under specific circumstances, though this isn’t an automatic right for all borrowers.
- EMI moratorium: Available during exceptional situations (like the COVID-19 pandemic)
- Loan restructuring: Offered for borrowers facing genuine financial hardship
- EMI holiday: Some loan agreements include a pre-defined EMI holiday option
The process typically requires formal application and documentation proving financial distress. Approval depends on your loan repayment history, the reason for request, and the bank’s current policies.
Suggested Read: PNB Home Loan Repayment Process
How to Reduce Home Loan EMI?
Here are some strategies to reduce your EMI and save money on your home loan:
| Tip | Description |
|---|---|
| Make Prepayments | Pay a lump sum to reduce the outstanding principal, which lowers your EMI. |
| Negotiate for Lower Interest Rates | If your credit score is good, request a lower interest rate. |
| Choose a Longer Tenure | Opt for a longer tenure to reduce your monthly EMI, but note that it increases the total interest cost. |
Suggested Read: Home Loan Prepayment vs. Investing in SIP
When Does Home Loan EMI Start?
Your first home loan EMI typically starts one month after disbursement, but this can vary based on:
- Disbursement date: If disbursed before the 15th, the EMI might be due the following month; if after, the month after next.
- Pre-EMI interest: For under-construction properties, only interest on the disbursed amount is paid until full disbursement or possession.
- Moratorium period: Some lenders offer a grace period before EMIs begin.
- Lender policies: Different lenders may have varying schedules.
Tip: Check your loan agreement for the exact start date.
What is Pre EMI, EMI Holiday, and EMI Waiver?
Pre-EMI:
- Pre-EMI refers to the interest that is paid on the principal amount of a loan before the actual EMI (Equated Monthly Installment) starts.
- This is typically applicable for loans where the borrower is in a construction-linked repayment plan, such as home loans for under-construction properties.
- During the pre-EMI period, the borrower pays only the interest on the disbursed loan amount, and the principal repayment starts later, once the construction is complete.
EMI Holiday:
- An EMI holiday is a grace period offered by the lender, during which the borrower is not required to pay the EMI for a specific time, even though the loan is active.
- This is often given during the initial period of a loan, especially for under-construction properties, where the borrower may not be ready to make full repayments.
- This holiday period helps ease the financial burden on the borrower during a time when they are not yet occupying the property or generating rental income.
EMI Waiver:
- An EMI waiver refers to the complete or partial cancellation of a borrower’s EMI payments for a specific period.
- This can be granted in exceptional circumstances, such as financial hardships, during a natural disaster, or for certain types of loans under government schemes.
- The waiver might be temporary or permanent, depending on the loan agreement and the conditions under which the waiver is granted.
Can You Pay Bi – Weekly Home Loan EMI?
Yes, you can pay a home loan EMI bi-weekly instead of monthly in many cases, though this depends on your lender’s policies.
Bi-weekly payment options:
- Formal bi-weekly plans: Some lenders offer structured bi-weekly payment options where you make payments every two weeks (26 payments per year instead of 12 monthly payments).
- Informal approach: Even if your lender doesn’t offer formal bi-weekly plans, you can often achieve similar benefits by:
- Dividing your monthly payment in half and paying that amount every two weeks
- Making one extra full payment each year divided across payments
Benefits of bi-weekly payments:
- Faster loan repayment: You’ll effectively make 13 monthly payments each year instead of 12
- Interest savings: Reducing principal more frequently means less interest accrues
- Budget-friendly: Smaller, more frequent payments may be easier to manage with bi-weekly paychecks
Suggested Read: Home Loan EMI Calculator with Prepayment
Tax Benefits on Paying Home Loan EMI
Paying home loan EMI (Equated Monthly Installment) can provide several tax benefits under the Income Tax Act of India. These benefits are primarily available under Section 80C and Section 24(b) of the Act.
| Section | Deduction Type | Maximum Deduction Amount | Conditions |
|---|---|---|---|
| 80C | Principal Repayment of Home Loan | ₹1.5 Lakh per annum | The house property must not be sold within five years of possession. |
| 24b | Interest Payment on Home Loan | ₹2 Lakh per annum | The loan must be taken for purchasing or constructing a house. If constructing a house, the construction must be completed within five years from the end of the financial year in which the loan was taken. If the property is let out (rented), there is no cap on the interest deduction under Section 24(b). This allows property owners renting out their property to claim full interest payments as a deduction. |
Check Out: Home Loan Tax Benefits Calculator
Get the Best PNB Home Loan Offers with Credit Dharma
Credit Dharma is your trusted partner for securing the best PNB Home Loan offers, with over ₹500 Cr+ loans handled and partnerships with 20+ leading banks. We provide exclusive access to the lowest interest rates and a seamless, digital process with fast approvals in just 1-2 weeks, backed by lifetime support from our home loan experts.
Why choose Credit Dharma? We provide:
- Lowest Interest Rates: Save more with every EMI.
- Maximum Funding: Get up to 100% funding for your dream home.
- Simple & Digital Process: No tedious paperwork or branch visits.
- Expert Guidance: Lifetime support from our team of specialists.
Compare, choose, and secure the best PNB Home Loan offer with Credit Dharma — your home loan journey starts here!
Frequently Asked Questions
EMI, or Equated Monthly Instalment, refers to the fixed payment amount that a borrower is required to pay to the lender each month until the loan period concludes.
The EMI amount remains constant if the home loan is obtained at a fixed interest rate. However, for loans with a floating interest rate, the EMI can fluctuate over the loan tenure. Regardless of the interest type, making partial prepayments can result in lower EMI amounts.
Utilizing an online EMI calculator is beneficial as it offers precise estimations of your monthly payments swiftly, thereby saving you valuable time in financial planning.
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