Not able to understand EMI calculation, why its showing more than EMI calculator ?

POSTED BY Sarav ON March 24, 2014 2:40 pm COMMENTS (7)

Hi Manish,

I had recently taken home loan of  60L from a nationalized bank. Before taking loan, they calculated the EMI as 65K per month (15 Yrs) and now with 10.2% interest they are showing almost 70K as EMI. I am totally confused.

Even i checked their website EMI calculator, the emi comes around 65K. The manager is not able to explained the calculation. What should I do?

Is it best to pay some lumpsum amount to reduce the tenure?


7 replies on this article “Not able to understand EMI calculation, why its showing more than EMI calculator ?”

  1. ashalanshu says:

    Dear Namdeo, Yes, you can demand it from your loan serving branch.



  2. says:

    Full payment schedule was given to me while signing the Arrangement letter with SBI. Afterwards it was not shown to me. Can i ask for it frm my home branch??

  3. ashalanshu says:

    Dear Sarav, loan is fully disbursed or partial disbursed. As you said till now you were paying only Interest as Pre EMI, how many months have passed for this pre EMI thing?



  4. ashalanshu says:

    Dear Sarav, the loan is fully disbursed or partially disbursed? are you paying full EMI or Pre EMI as of now?



    1. Sarav says:

      Thanks Ashish. Do i need to ask them full calculation sheet from the manager. Is there a right banking term to use it?

      Hi Ashal, so far i paid only interest and starting my EMI from this month

      1. Ashish Garg says:

        Dear Sarav,

        Please ask the bank to give you full repayment schedule. This will show you the EMI (with break up Interest and Principal), current interest rate charged and tenure.

        Also, check with the bank if they are adding any amount towards any insurance policy with your EMI. Some of the nationalised banks do so without informing the customer about it. The insurance policy could be cover up the loan amount but at the end of the day you have to pay the premium and bank may smartly adding the premium on monthly basis with your loan EMIs.


  5. Ashish Garg says:

    Hi Sarav,

    There seems to be some calculation error at Bank’s end while calculating the EMI . They may have entered the tenure as 150 months instead of 180 months.

    Please check the loan tenure again in the calculation sheet, given by Bank.

    Ashish Garg

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