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How is my EMI calculated?

Equated Monthly Installments or EMI are the monthly payments that you make to your home loan lender. Your EMI has two components: Principal Component and Interest Component. The Principal Component goes towards repaying your outstanding principal amount. Over the tenure of the loan, the principal component reduces your outstanding principal until it is completely repaid. The interest component does not help repay the principal, it only goes towards paying the interest charged by the lender on the loan.

Am I paying too much EMI?

The higher your interest rate, the higher your EMI. Your lender might be charging you a much higher interest rate than other lenders in the market. You might be stuck with a 11.5% interest rate while your next-door neighbour is only paying 9.45%. So not only are you paying a high EMI, you are also paying a tremendous interest amount over the loan tenure.

But I don't want to pay so much interest and EMI. What do I do?

Aah. You are not the only one who is facing this problem. You are paying a high EMI and a higher Interest Amount because the lender decided to increase your interest rate. And well, why should you pay more? Here's how you can cut down your EMI and interest repayment:

Switch your home loan to the lowest interest rate possible

Switching to a lender who has a lower interest immediately plugs the unnecessary outflow of funds from your bank account. On average, switching your home loan cuts down your total interest payment by a colossal 20% of the outstanding principal amount. Switching not only helps you save Lakhs of rupees, it can also be used to slash the EMI payments you make every month.

Switching sounds awesome! How do I do it?

Use the SwitchMe Savings Calculator, of course! Use our easy-to-use savings calculator and get a complete list of savings with different lenders. Don't save a little, save a lot!