Mortgage vs Home Loan — Are They the Same?
In India, the terms mortgage and home loan are often used interchangeably, though technically a mortgage refers to the security (the property itself) used to back the loan. A home loan is the financial product. For calculation purposes, both use the same EMI amortisation formula.
Mortgage EMI Formula
Home Loan EMI FormulaLoan Amount (P) = Property Price − Down Payment
EMI = P × r × (1+r)ⁿ ÷ [(1+r)ⁿ − 1]
Example: ₹50L property, ₹10L down, 8.5% rate, 20 years
P = ₹40L · r = 0.007083 · n = 240
EMI ≈ ₹34,723/month
EMI = P × r × (1+r)ⁿ ÷ [(1+r)ⁿ − 1]
Example: ₹50L property, ₹10L down, 8.5% rate, 20 years
P = ₹40L · r = 0.007083 · n = 240
EMI ≈ ₹34,723/month
Down Payment Impact on EMI
| Property Value | Down Payment | Loan Amount | EMI @8.5% 20yr |
|---|---|---|---|
| ₹50 Lakh | ₹5L (10%) | ₹45L | ₹39,063 |
| ₹50 Lakh | ₹10L (20%) | ₹40L | ₹34,723 |
| ₹50 Lakh | ₹15L (30%) | ₹35L | ₹30,383 |
| ₹1 Crore | ₹20L (20%) | ₹80L | ₹69,446 |
💡 RBI guidelines typically require a minimum 10–20% down payment. A larger down payment reduces your EMI, saves interest, and improves loan approval chances.
🏠 Calculate your exact home loan EMI with any down payment
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