EMI (Equated Monthly Installment) is calculated using the formula: EMI = [P x R x (1+R)^N] / [(1+R)^N-1] where P is principal, R is monthly interest rate, and N is the number of months.
Why tenure matters
Increasing your loan tenure from 5 to 10 years can cut your EMI in half – but you end up paying significantly more interest over the loan's lifetime.
The prepayment trick
Making one extra EMI per year can reduce a 20-year home loan to just 12 years while saving lakhs in interest.