₹25 Lakhs Home Loan EMI

When you take a home loan, you must repay it in EMIs or Equated Monthly Instalments over a certain period of time. Your home loan EMI is determined by three factors: the interest rate, the loan amount and the repayment term. 

 

The EMI amount is composed of both the interest and the principal component. 

 

During the first few years of repayment, the interest component is significantly greater than the principal component. Then, the principal component grows while the interest component drops in the last few years. 

 

Read on to know how to calculate the ₹25 Lakh home loan EMI for 15 years and other tenures both manually and using digital tools.

EMI Calculations for A Home Loan of ₹25 Lakhs with Varying Tenures

The following table illustrates the EMI amount that you will be paying to your lender on a monthly basis for a home loan of ₹25 Lakhs for various tenures. The interest rate is assumed to be 8.85% per annum for your ₹25 Lakh home loan EMI calculation.

₹25 Lakh Home Loan EMI Calculator

Using an EMI calculator helps you compute EMIs instantly. All you need to do is input the loan amount, tenure and applicable  interest rate to assess your monthly instalments.

While this calculator provides error-free results, you can calculate the EMI manually as well. Here is the formula for calculating your home loan EMIs manually:

 

EMI = P x R x (1+R)^N / [(1+R)^N-1]

 

Here,

 

• P is the principal loan amount

• N is the tenure of the loan in months

• R is the interest rate

₹25 Lakh Home Loan Interest Rate Offered by Banks/NBFCs 

Housing Finance Companies and banks provide home loans of up to 90% of the property's purchase price for up to 30 years. To meet the housing financing needs of a larger customer base, HFCs/banks provide a variety of home loan schemes. 

 

Some of the perks and features of such schemes include:

 

• Simpler home loan eligibility

• Mixed interest rates

• EMI waivers

• Overdraft facility

• Balance transfer facility

Some lenders also provide affordable home loan options for those with insufficient income documentation.

 

Make sure to research the market to get the best home loan deal. At Bajaj Markets, this is easier as you get to see the features and charges of home loans from different lending partners. The following table offers a quick look:

*Disclaimer: The interest rates and associated charges are subject to policy changes of the lending partner.

 

Choose the ideal home loan based on your repayment capacity, needs and cash flow. Remember to check all the charges apart from the home loan interest rate before you proceed. 

 

Also, make sure you take the stamp duty and registration charges into consideration. All of these factors into your cost of buying a home. Then, select a lender who will finance the required amount while also providing fast loan approval and easy repayment options.

Factors That Affect Your ₹25 Lakh Home Loan Interest Rate

The interest rate levied by the lender on a home loan depends upon multiple factors. Some of the factors that influence your ₹25 Lakhs home loan EMI and interest rate are:

 

• Credit Score: With a healthy credit score (upwards of 750), banks/NBFCs are likely to offer you a house loan at a lower rate of interest. On the other hand, you may have to pay a much higher interest rate if you have a poor credit score. 

• Type of Employment and Income: Lenders charge a lower interest if you have a stable job or a well-established business. This is because a regular inflow of cash means a lower risk of default.

• Tenure of the Loan: Home loans with a longer tenure usually attract a higher rate of interest compared to ones with a shorter tenure.

• Type of Interest: Home loans are offered with three types of interest rates, floating rate, fixed rate and mixed rate. 

  The rate on loans with a fixed interest remains constant throughout the tenure. A floating rate is subject to change every quarter. Loans with mixed interest rates start off with a fixed rate of interest, applicable for a specific period of the tenure. Then they switch over to a floating rate.

  A fixed rate is usually higher than a floating rate, but a floating rate can be more pocket friendly. Choose the ideal rate to compute your ₹25 Lakh home loan EMI.

• Loan to Value (LTV) Ratio: It is the ratio of the loan amount to the market price of the property. Most lenders offer home loans up to 70% to 90% of the property price. 

  You can always lower the LTV ratio by making a larger down payment. Home loans with a higher LTV ratio usually attract a higher rate of interest.

• Property Location: The location of the property also impacts the interest rate charged by the lender. Lenders levy a lower rate of interest on properties with good connectivity and amenities located at a prime location.

• Loan Amount: The amount of the loan taken also influences the applicable interest rate. In most cases, the more the loan amount, the higher the interest rate. 

  For example, a home loan of ₹50 Lakhs would attract a higher rate of interest than a home loan of ₹25 Lakhs.

You can get loans at affordable interest rates and flexible home loan repayment tenures at Bajaj Markets. Apart from competitive interest rates, you also get numerous other benefits, such as zero penalty for foreclosure or for making part prepayments and home loan tax benefits. 

 

While looking for the best home loan offer for yourself, compare the various loan offerings and select a lender providing the most affordable interest rates.

Eligibility Criteria for A ₹25 Lakh Home Loan

You must satisfy a certain set of criteria to be eligible for a home loan. While the exact criteria are different for different lenders, some of the general eligibility criteria for home loans are as follows.

 

• Age: You must be a legal adult (18 years of age) to be eligible for any home loan. Some lenders have a higher age limit and require you to be at least 21 years old to qualify for a home loan.

• Credit Score: Credit score or CIBIL score is one of the most important factors that determine your eligibility for a home loan. If you have a credit score of 750 or above, you are most likely eligible for most home loan offers.

• Income: Your earnings are another very important factor that determine your eligibility for a home loan. Banks/NBFCs will grant you a home loan only if you are financially capable of paying EMIs on time.

• LTV Ratio: Banks/NBFCs grant 90% of the market price of the property as a loan only if it is under ₹30 Lakhs. The usual LTV is around 80%. 

For example, say you apply for a home loan to buy a house worth ₹25 Lakhs. The maximum loan amount you would be eligible for from most banks/NBFCs would be ₹20 Lakhs. 

Steps to Apply for A Home Loan Up to ₹25 Lakhs

You can easily apply for a home loan at Bajaj Markets. All you have to do is follow the below-mentioned steps:

 

• Step 1: Visit the Home Loans section and enter personal details to check your instant home loan eligibility

• Step 2: Select your lending partner from the listed choices 

• Step 3: Choose your home loan amount and mention property details

• Step 4: Get your net disbursal amount and other details

Await contact from a customer service executive who will process your application further.

 

Once you have selected the lending partner, the home loan amount, and the tenure of your choice, you will be shown a loan summary page. It will include details such as the rate of interest, the loan amount, the EMI, and the EMI due date. 

 

It will also contain information about the processing fee that will be applicable on the home loan. The processing fee will be deducted from your final home loan amount.

Documents Needed for A ₹25 Lakh Home Loan

In order for your home loan application to be processed by the bank/NBFC, you need to furnish a certain set of documents. Here is a handy list of home loan documents that you need to provide:

 

• Identity Proof: Aadhaar card, Voter ID card, passport driving licence, etc.

• Address Proof: Passport, driving licence, Aadhaar card, utility bills, etc.

• Proof of Income: Last three months’ salary slips, last six months’ bank statements, Form 16 or income tax returns.

• Property Documents:

  Sale deed, a copy of allotment letter/buyer agreements. 

₹25 Lakh Home Loan EMI for 10 Years

Taking a home loan is an important decision which requires time and thought. Calculating your home loan EMI is critical. It will help you understand the options and choose the best one for your needs.

 

Computing your ₹25 Lakh home loan EMI for 10 years, for instance, is easy. You can take the assistance of a ₹25 Lakh loan EMI calculator to do your calculations quickly and accurately.

Enter the loan amount, tenure and interest rate in an EMI calculator to get your ₹25 Lakh loan EMI for 10 years. 

 

See the table below:

₹25 Lakh Home Loan EMI for 20 Years

Now that you know the calculation for 10 years, understanding the payable EMI for a ₹25 Lakh home loan for 20 years is also important. It will help you learn about the difference the tenure makes on your monthly payments. 

 

You can use a ₹25 Lakh loan EMI calculator for easily calculating ₹25 Lakh home loan EMI for 20 years. 

 

See the table below:

₹25 Lakh Home Loan EMI for 30 Years

Here, you can find the calculation for a ₹25 Lakh home loan EMI for 30 years. Use the EMI calculator for a speedy and accurate check or use the formula. 

 

See the table below:

How to Minimise Your ₹25 Lakh Home Loan EMI?

While the EMI of your home loan is determined by the lender, there are a few things that you can do to reduce your ₹25 Lakh home loan EMI. 

 

• Choose a Longer Repayment Duration: If you choose a longer tenure, your EMI obligation will be considerably reduced.

• Select a Loan with a Lower Interest Rate: Always compare loan offers from different banks/NBFCs and choose the one with the lowest interest rate. This will reduce your EMI obligation.

• Make a Substantial Down Payment: If you make a large down payment, your overall debt burden will decrease. This will reduce your loan EMI.

• Prepay Partially:

  Based on your existing financial situation, you can make a partial prepayment on your ₹25 Lakh home loan. This will give you a breather by reducing your EMI obligations.

Other Home Loan EMI Options

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