How this works
Home loans typically run 15–30 years, so small rate differences compound into large totals — this uses the same reducing-balance EMI formula as any other loan, just suited to the longer tenures and larger amounts a home loan involves.
Common questions
Does a 0.5% rate difference really matter over 20 years?
Yes, significantly — on a large principal over a long tenure, even a small rate change shifts total interest by a noticeable amount, since interest compounds on a shrinking balance for hundreds of months.
Should I choose a longer tenure to lower my EMI?
It lowers the monthly payment but increases total interest paid — a shorter tenure costs more per month but less overall, if you can afford the higher payment.