Considering a home loan of ₹10 Lakhs? Strategic planning of your repayment and evaluating the potential impacts is important when opting for a home loan. Thus, it is essential to conduct an in-depth study of the intricacies of how the monthly instalments of a loan are determined and ways to manage these.
A longer tenure usually results in a lower EMI amount but increased interest costs. On the other hand, a shorter tenure can lead to higher monthly installments but reduced interest payments. Thus, it is essential to establish a balance. You can use a home loan EMI calculator to quickly estimate your instalments and compare offers.
Year | Principal | Interest | Balance |
---|
Assuming that the interest rate charged on your home loan of ₹10 Lakhs is 9% p.a. Provided below is a breakdown of the EMI payable over a tenure of 10 years:
EMI |
₹12,668 |
Total Interest |
₹5,20,109 |
Total Repayment Amount |
₹15,20,109 |
Over a tenure of 20 years, the EMI becomes slightly more affordable. Here are details of the amount payable over this period:
EMI |
₹8,997 |
Total Interest |
₹11,59,342 |
Total Repayment Amount |
₹21,59,342 |
To enjoy low monthly instalments, opt for a tenure of 30 years. This can help you manage your EMIs comfortably within your budget. The details are as follows:
EMI |
₹8,046 |
Total Interest |
₹18,96,641 |
Total Repayment Amount |
₹28,96,641 |
Lender
|
Interest Rate
|
Max. Loan Amount
|
Tenure
|
|
---|---|---|---|---|
Quick Disbursal
Bajaj Housing Finance |
8.50% p.a. |
₹5 Cr |
40 Years |
|
Home First Finance Company |
9.50% p.a. |
₹0.40 Cr |
20 Years |
|
ICICI Bank |
9.00% p.a. |
₹5 Cr |
30 Years |
|
India Shelter |
10.50% p.a. |
₹0.50 Cr |
20 Years |
|
Kotak Mahindra Bank |
9.00% p.a. |
₹0.50 Cr |
20 Years |
|
LIC Housing Finance |
8.65% p.a. |
₹15 Cr |
30 Years |
|
Quick Disbursal
PNB Housing Finance |
8.50% p.a. |
₹15 Cr |
30 Years |
|
Shriram Housing Finance |
11.50% p.a. |
₹1 Cr |
25 Years |
|
Shubham Housing Finance |
10.90% p.a. |
₹0.50 Cr |
25 Years |
|
Union Bank of India |
8.50% p.a. |
₹15 Cr |
30 Years |
|
*Disclaimer: The aforementioned rates are subject to change at the lender’s discretion.
Prior to applying for a loan of ₹10 Lakhs, check the eligibility criteria for a home loan and the documents required. This can help you make informed decisions and get a loan that fits in your budget and can be managed easily.
Assuming that the applicable interest rate is 8.85% p.a., the EMI for a ₹10 Lakh home loan with a repayment tenure of 10 years would amount to ₹12,587.
Since home loans are secured forms of credit, you cannot avail a ₹10 Lakh home loan without any security.
The maximum repayment tenure you can avail for a home loan of ₹10 Lakh would be 30 years.
If you are a salaried professional, you will need to have a monthly salary of at least ₹25,000 to get a ₹10 Lakh home loan. If you are a self-employed individual, you will need to have a monthly income of ₹35,000.
Note that your monthly income criteria for a ₹10 Lakh home loan will depend on the guidelines of the lender as well as the city you live in.
If you are looking to reduce the EMI on your home loan, opt for a longer tenure. However, with a longer tenure, your total payable amount at the end of the loan duration will be high.