Home loan calculator vs LoanRepo: the same loan, two very different answers
Every home-loan EMI calculator makes the same assumption: the interest rate you start with is the rate you keep for the whole loan. For a floating-rate loan that is not what happens. The rate resets, usually every three months on a repo-linked loan, and the EMI often stays put while the end date moves. A calculator that holds the rate still cannot show you that.
Below, the same loan is run both ways. On the left, a typical calculator. On the right, the same loan walked through every RBI repo decision since it started, at its own reset dates. Change the boxes to match your loan.
The same loan, two answers
Rate never changes
Rate follows the RBI, at your reset dates
Modelled, not your statement. It assumes your lender held the EMI and let the tenure move; RBI circular RBI/2023-24/55 says lenders must offer you the choice between a longer tenure and a higher EMI. If your lender raised the EMI instead, the end date stays closer to schedule, but you paid more every month. Future resets use today's repo rate of 5.50%. Your lender's spread and reset dates may differ.
Every reset, in order
This is what the right-hand column is made of: the dates your rate was reset and what it moved to.
| Reset | Rate before | Rate after | Balance then |
|---|---|---|---|
| Loading... | |||
Same loan, different start month
The result depends on when the loan began. The table uses your amount, tenure and spread, and changes only the start month. It cuts both ways: loans taken when rates were high have come out ahead since, because the rate fell afterwards.
| Started | Rate at start | Typical calculator says | LoanRepo says | Difference |
|---|---|---|---|---|
| Loading... | ||||
What a typical calculator cannot show
- The reset date. The RBI decides on one day. Your loan changes on its own reset date, up to three months later on a repo-linked loan.
- The end date moving. When the EMI is held, a higher rate lengthens the loan and a lower rate shortens it. A constant-rate calculator always says you finish on schedule.
- Where you are now. Most tools start from day one of the loan, not from the rate you are paying today.
Loans taken before October 2019 were not repo-linked, so this model is weaker for them. For a loan you already have, the figure on your own statement is the real one; log it in LoanRepo and the page compares the two.
Questions
Why does a normal EMI calculator show a different end date from my bank?
Because it assumes the rate you started with never changes. On a floating-rate loan the rate resets, and if your EMI stays the same the loan gets longer when rates rise and shorter when they fall. A constant-rate calculator cannot show either.
Does a repo rate change change my EMI immediately?
No. The RBI announces a decision on one day. Your loan changes at your own reset date, up to three months later on a repo-linked loan and up to twelve on an MCLR or PLR loan. Most lenders then keep the EMI and move the tenure unless you choose otherwise.
Is the LoanRepo result exact?
No. It is modelled from published RBI repo rate decisions and an assumed spread, with the EMI held constant. Your statement is the real figure. Your lender's spread, reset dates and any EMI changes can make the actual numbers differ.