Are you looking at the monthly EMI for the Rs 25 lakh home loan? Do you know how much your EMI would be per lakh if your property loan taken is for Rs 25 lakh? The amount of the house loan, the tenure of the loan, and the interest rate are factors that influence the monthly EMI. Nevertheless, you ought to know about a 25 lakh home loan EMI before making that kind of financial commitment
A home loan of up to ₹ 25 lakhs offers a host of features and benefits, including:
It’s difficult to stay on top of your mortgage. But for a 25 Lakh home loan EMI of 10 years, the difference in interest accrued is much greater than that on an EMI with a tenure of 20 years.
Let’s first understand how an “EMI” is calculated for a home loan. EMI stands for Equated Monthly Installment and is the sum that you need to pay back every month.
To calculate an EMIs (equated monthly installments), you can use the emi-calculator on our page or follow these simple steps:
Step 1: Calculate your total amount or principal by multiplying the price of the product by twelve.
Step 2: Subtract any recent interest amount, if applicable.
Step 3: Divide your principal calculated in step one with the number of months you need to pay back.
Every bank uses a standard formula to calculate this EMI
It is E = [P x R x (1+R) N]/[(1+R) N-1]
Here P is the loan amount, R is the rate of interest and N is the tenure of the loan.
Then, you can add the variables:
The monthly interest- If your interest rate is 12% p.a, add the yearly interest rate as 12%.
Loan tenure- This field is in months. So, if it is twenty years, you’ll enter 240 months and so on.
Loan Amount- The total amount borrowed as a loan.
Use one of the many 25 lakhs home loan EMI Calculator tools to figure out your monthly repayments. They’re available all over, on banking websites and finance-related websites. All you have to do is enter the parameters and voila!
The calculator will quickly apply the EMI formula for you. You can calculate 25 lakh EMI over 10 years, with just a few clicks of your mouse
A smart way to evaluate your budget is to calculate the monthly EMI on a loan. This will allow you to get an estimate of how much you’ll be paying per month over the years. This information can help you plan and adjust things like how much money you want to take out as a loan, or which period you want it for.
Let us calculate 25 lakh Home Loan EMI for 30 years at an interest rate of 7.90% which is the most common offering by most banks.
Let’s calculate 25 lakh Home Loan EMI for different tenures
25 Lakh Home Loan EMI for 30 Years
Let’s calculate the EMA of 25 lakhs on a loan for 30 years
When the Total Loan Amount is Rs.25 lacs, the Monthly Installment/EMI comes to Rs.18,170. The Total Interest Paid would amount to Rs.40,41,249 with the Total Amount Paid amounting to Rs.65,41,249.
25 Lakh Home Loan EMI for 25 Years
To see how the EMI changes with a lesser tenure, let’s make it 25 years. With the total amount at Rs.25 lakhs, the monthly installment / EMI comes to Rs.19,130 and the total interest paid will be Rs. 32,39,026 with a total paid back of Rs. 57 Lakhs.
25 Lakh Home Loan EMI for 20 Years
To have a more accurate representation of the EMI, let’s make it 20 years. When the total loan amount is Rs. 25 Lakhs, the monthly installment/ EMI comes to Rs.20,756/- . The total interest paid would amount to Rs.24,81,364 with the Total Amount Paid coming up to Rs.49,81,364.
When you calculate the EMI for an Rs. 25 Lakhs Loan, the interest rate is what should decide who your lending bank is. Different banks offer different rates according to their internal policies. Use our EMI Calculator for quick results.
There are typically two types of home loan interest rates:
Below is a list of factors that will influence the final interest rate for you, irrespective of whether or not you choose to opt for fixed or variable rates:
The CIBIL score: Credit history is the most important factor in determining your EMI. The CIBIL Score, also known as a credit score, shows the financial health of any individual and whether they’ve made their regular repayments towards any existing credit and have good. If the individual is a good candidate for a home loan, then they are offered interest rates that are lower than the standard rates.
The Loan to Value ratio: The loan to value ratio is calculated based on the property’s market value. If the property is in a prime location and can be easily resold, the margin of risk to be assumed by the applicant decreases. Lenders will usually charge less for a loan if the collateral it’s backed by has a higher ratio of value to the sum of outstanding debt.
The income: The repayment capacity of the individual affects their interest rate. Individuals with higher incomes qualify for lower rates because they have a greater ability to repay. To apply for a home loan, try to show multiple income sources. And be sure to consider the co-applicant’s income too! Not only will you probably qualify soon, but it’ll also help you in lowering your monthly EMI.
Age of the customer: Home loans are long-term and, as such, your age is an important factor. On top of that, the younger you are at the beginning of the loan tenure, the more time you’ll have to enjoy low EMI rates. So, they are being offered a lower interest rate.
To get a Home Loan of Rs.25 lakhs, you’ll need to meet eligibility criteria.
They are:
The bank should meet a certain level of requirement to accept the loan application. For example, it could be the applicant’s total income is no less than the monthly net minimum wage in their city.
Should I extend the loan tenure to reduce monthly EMI?
One option when looking to lower your monthly payment is to increase the length of the term of your loan. However, you need to note that this will end up costing you more in interest payments over the life of the loan. To get the best deals on interest rates, it’s advisable to negotiate on them before committing.
For a home loan of Rs. 25 lakh, am I required to pay a margin?
The borrower usually has to pay a margin of at least 10%. This depends on the loan-to-value ratio that your bank offers.
What are the tax benefits of getting a home loan?
There are many ways to get tax deductions for your mortgage, according to the Income-tax Act of 1961. Deductions can be made on both interest and the principal amount depending on the type of property you have and its value.
What is the CIBIL score required to apply for Rs.25 lakh home loan?
Most banks ask for CIBIL scores of at least 650-700 before giving a home loan of Rs.25 lakhs.
Conclusion
If you need to borrow something like Rs.25 Lakhs, then you should know all sorts of banks offer this service.
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