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20 Lakh Home Loan EMI

Check 20 Lakh Home Loan EMI & Interest Rate

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Home loans are very common these days, people can easily get their dream house financed by the banks and other private lenders, however, it is important to understand that a loan should not only fulfil the monetary requirement of the applicant but should also be under the repaying capacity of the borrower.

For all the individuals looking for a mid-range property loan of Rs. 20 lakhs, there are various points to keep in mind like the rate of interest, flexibility in repayment tenure, EMIs, etc.

Let's find out more about Rs. 20 lakh home loan EMIs and other factors in the blog.

EMI Calculations for a Home Loan of Rs. 20 Lakh with Varying Tenures

The interest rate and loan tenure play a crucial role in the calculation of Rs. 20 lakh home loan EMI amounts. The longer the repayment tenure is, the higher the total EMI amount will be. It is generally advisable for the applicant to take short-tenure home loans to save money.

Check out the table below to find EMI of varying venures for comparisons-

  • Rs. 20 lakhs loan EMI for 10 years at 10% p.a

  • Rs. 20 lakh loan EMI for 15 years at 12% p.a

  • Rs. 20 lakh loan EMI for 20 years at 14% p.a

Loan Repayment Tenure

EMI Payment (Rs)

Total Interest Payment (Rs)

Total Loan Value (Rs)

10 years

26,430

11,71,619

31,71,619

15 years

24,003

23,20,605

43,20,605

20 years

23,432

36,23,563

56,23,563

20 Lakhs Home Loan EMI Calculator

** The above charges are excluding taxes
* Placeholder for disclaimers on Interest and Charges page
 **These are indicative and subject to change at the discretion of lender/ without prior notice.

Interest Rate Applicable on an Rs. 20 Lakh Home Loan

Various factors affect the rate of interest of Rs. 20 lakh home loan. Repayment tenure, EMI paying capacity, and type of employment are some such factors. The interest rate starts from 6.90%, depending on the lending institution.

Eligibility Criteria for an Rs. 20 Lakh Home Loan

There are various factors like income, credit score, etc., that highly influence the home loan eligibility criteria for an Rs. 20 lakh house loan. Apart from these factors, elements like employment, work experience, and the nature of income also play a crucial role in the eligibility criteria.

The applicant must be a resident of the country, this point is based on the minimum monthly income of the individual and the current city location. The borrower has to check and make sure that the property value matches the minimum money amount fixed by the lender. These values are generally mentioned on the application form and if not, the applicant must get in contact with the concerned executive.

Some other important points of the eligibility criteria are -

  • The minimum and maximum age of the applicant must be 23 years and 70 years respectively.

  • The applicant must have at least 3 years of work experience.

Steps to Apply for a Home Loan Up to ₹ 20 Lakh

The step-by-step procedure for getting a home loan up to Rs. 20 lakh is -

  • Step 1: Online Form - Visit the official portal of the Finserv MARKETS and tap on the loan section. An application form will be displayed on the screen, enter all the required details like PAN card number, date of birth, and contact details.

  • Step 2: Choose the Lender - Various lenders have listed their home loan quotations on Finserv MARKETS for customers’ ease. Select the lender as per your financial goals.

  • Step 3: Loan Requirements - Mention all the information regarding the various alternates like EMI amounts, interest rates, tenure, etc and submit the form with mandated documents

  • Step 4: Approval and Disbursal - The application will be then analysed and verified by the lending organisation. If the application is authentic and duly filled, your home loan application will be approved. The company executive will contact you to sign the loan agreement. After the agreement is duly signed by both parties, the company will transfer the loan amount into the applicant’s account.

Documents Needed for Rs. 20 Lakh Home Loan

In the process of Rs. 20 lakh home loan application, there are certain documents that you need to submit along with the form. Here is a list of the required documents for house loan.

  • Identification Proof - PAN card/ Driving Licence/ Passport/ Voter ID. Anyone of the above mentioned can be used.

  • Income Proof - Salary Slips of last 3 months, Bank statements of last 6 months and recent IT returns, and Form 16.

  • Property Proof - Title deed agreement, Copy of buyer agreement.

  • Contribution Proof

  • Contract of employment (less than one-year-old)

  • Bank statements (showing repayment transactions of the existing loans)

  • Passport size photographs.

How to Minimise Your Rs.20 Lakh Home Loan EMI?

A Rs. 20 lakh home loan EMI is highly dependent on the rate of interest fixed by the lender.

However, there are a few points that might help you to minimise the EMIs 

  • Long Term Loans - The repayment tenure for any loan plays a crucial role in deciding the Rs. 20 lakh home loan EMI amounts. The maximum tenure for a home loan is 20 years. The Rs. 20 lakh loan EMI for 20 years might have a lower EMI that fits into the monthly budget of the applicant, however, the applicant ends up paying almost thrice of the loan amount. Thus, an applicant must keep in mind that long-term loans end up being expensive as the interest is charged for a longer tenure.

  • Type of EMI Plan - There are various schemes and types of EMIs offered by lenders based on your requirements. Systems like Step-Down EMI schemes where the borrower has to pay a larger amount as Rs. 20 lakh home loan EMI in the initial months and a lower amount in the later months. This decreases the interest burden in the later tenure part and helps in maintaining the financial planning of the individual.

  • Existing Bank - In case, you are an existing customer of some bank, it is a good option to apply for home loan in the same bank again. If you have a good history with the bank, there is a possibility they will offer you a loan at a comparatively lower rate which will eventually help you in minimising Rs. 20 lakh home loan EMI amounts with the sole purpose of increasing their bank’s brand loyalty.

  • Negotiate for Lower Rate - Your credit score and debt history can help you in negotiating with the bank for lower interest rates. Lenders always take into consideration the debt history and credit score while reviewing any application.

Factors that Affect Your Rs. 20 Lakh Home Loan EMI

Five major factors will affect Rs. 20 lakh home loan EMI amounts -

  • Repayment Tenure - A longer repayment tenure results in a lesser EMI amount. However, in a longer repayment period, the total paid interest amount will be higher. Therefore it is always better to opt for short-loan tenure.

  • Credit Score - A higher credit score is helpful in all terms including EMIs. There is a high possibility that individuals with a credit score above 750 will get loans at lower interest rates.

  • Current Debts - Existing debts are not a direct factor but an indirect factor that affects the Rs. 20 lakh home loan EMI. When there are too many ongoing loans, lenders assume you to be credit-needy and do not grant loans easily.

  • Rate of Interest Type - The type of interest rate, i.e fixed and floating interest rates also influence your home loan EMI. Fixed-rate of interest is beneficial as it is consistent and easy to manage. On the other hand, the floating rate of interest is highly influenced by the RBI and can vary during the repayment tenure. The biggest disadvantage of the floating interest rate method is that if the rate of interest is increased, you will end up paying more for EMI amounts.

  • Age and Income - The age and annual income of the applicant also play a crucial role in fixing the rate of interest on the loan. There are also various schemes and offers available for senior citizen applicants.