Interest-only mortgage calculator models a home loan where you pay only interest for an initial period — common in some NRIs' overseas products and builder-linked schemes, though rare in standard Indian home loans.
About this calculator
Interest-only mortgage calculator models a home loan where you pay only interest for an initial period — common in some NRIs' overseas products and builder-linked schemes, though rare in standard Indian home loans. Enter principal, rate, IO years, and the amortization period after IO ends.
On a ₹50 lakh loan at 8.5%, IO payment is about ₹35,417/month — but principal stays at ₹50 lakh. When IO ends and you amortize over 17 years, EMI rises to about ₹44,000 while you already paid ₹12.7 lakh interest during IO with zero principal reduction.
Compare with a normal [[emi]] on the same loan. Use [[home-affordability]] to see if the post-IO EMI still fits your income. Total interest exceeds a fully amortizing loan from day one — run [[home-loan-prepayment-optimizer]] if you plan to prepay after IO.
Common uses
- NRI comparing IO loan product vs standard Indian home loan EMI
- Investor holding property short-term who wants lower cash outflow initially
- Stress-testing budget when IO period ends and EMI jumps
- Builder-linked scheme with 2-year possession-linked IO period
- Financial planning homework on IO vs fully amortizing mortgages
Frequently asked questions
What is the interest-only payment on a ₹50 lakh home loan at 8.5%?
Monthly IO payment = 50,00,000 × 0.085/12 ≈ ₹35,417. You pay no principal during IO — the full ₹50 lakh remains due when amortization starts.
Are interest-only home loans available in India?
Standard SBI/HDFC retail home loans are fully amortizing. IO structures appear in some NRI products, LAP top-ups, and developer schemes. Always confirm with the lender before assuming IO terms.
Why does EMI jump after the interest-only period?
Principal was untouched during IO. The same ₹50 lakh must now be repaid over fewer remaining years, so the amortizing EMI is higher than a loan that started repaying principal from month one.
How much extra interest does an IO loan cost vs normal EMI?
On ₹50 lakh at 8.5% with 3 years IO then 17 years amort, total interest exceeds a straight 20-year loan by roughly the IO-period interest with no principal paydown. Enter your numbers to see lifetime interest.