Interested in financial products
Processing

The EMI for Rs. 20 Lakhs home loan will not be the same for all. It depends on the interest amount fixed on the loan and the tenure. Now, every lender provides a home loan EMI calculator on their website. Using the calculator, you can find the EMI amount for different interest rates and tenures. 

Owning a home is the common dream among most Indian people. With banks offering instant home loans, buying a home is made simple. If you are wondering what will be the maximum eligible amount for a home loan, here  is the answer. 

You can avail moratorium facility on your home loan that  is offered by banks in the wake of COVID-19 pandemic. It can be availed for up to 6 months from March 2020 to August 2020. While you can stay away from making the repayment, interest charges apply during the moratorium period. If you plan to use the moratorium period for your home loan, through the moratorium EMI calcultor, you can get to how much you will be paying additionally after the moratorium period ends. 

The Indian government has shown inclination to encourage citizens to invest in a house by providing multiple tax benefits. If you are taking a home loan for purchasing or constructing a house, it must be completed within 5 years from the end of the financial year in which the loan was taken by you. EMIs for housing loans have two components - interest and principal payments. Interest portion of the EMI paid can be claimed as a deduction from your total income up to a maximum of Rs. 2 lakhs.

While availing a home loan, you need to make monthly EMI payments which include the principal amount and the interest payable. The Income Tax Act enables borrowers to get tax benefits on both the principal amount and the interest. When it comes to the interest portion of the EMI that is paid for the year, it can be claimed as a deduction from your total income of up to a maximum of Rs. 2 lakhs under Section 24. But the home loan taken for the purchase or the construction of the house must be completed within 5 years from the end of the financial year in which the loan was taken by you.

EMIs are calculated depending on the principal amount borrowed and at what interest rate it is borrowed at. The tenure period is also considered while calculating your home loan EMI. So the amount repayable will be the amount borrowed plus the amount payable towards interest, which will be divided throughout the tenor of the loan with uniform monthly payments.The EMI for a 30 lakh home loan will depend on the interest rate and the tenure period that you and your lender agree upon. For instance, if you get an interest rate of 9% and a tenure period of 10 years, your Equated Monthly Instalment(EMI) will be Rs.38,003. 

The EMI for a 40 lakh home loan will depend on the interest rate and the tenure period that you and your lender agree upon. For instance, if you get an interest rate of 8% and a tenure period of 20 years, your Equated Monthly Instalment(EMI) will be Rs.33,458. When your tenure is long it seems like you have a lower EMIs, however its best to take a loan for the shortest period of time. In a long term loan, the interest outgo will become too high.

The EMI for a 10 lakh home loan will depend on the interest rate and the tenure period that you and your lender agree upon. For instance, if you get an interest rate of 9% and a tenure period of 15 years, your Equated Monthly Instalment(EMI) will be Rs.10,143. When your tenure is long it seems like you have a lower EMIs, however its best to take a loan for the shortest period of time. In a long term loan, the interest outgo will become too high.

The EMI for a 20 lakh home loan will depend on the interest rate and the tenure period that you and your lender agree upon. For instance, if you get an interest rate of 8% and a tenure period of 20 years, your Equated Monthly Instalment(EMI) will be Rs.16,729. When your tenure is long it seems like you have lower EMIs, however its best to take a loan for the shortest period of time. In a long term loan, the interest outgo will become too high.

Refinancing a home loan means, transferring your existing home loan to another lender to pay off the existing loan. There are different reasons why people choose to refinance their home loan.

Owner financing(also known as seller financing) is the transaction done between the seller of the house and a buyer directly. Here, the seller finances the property’s purchase directly with the person who is willing to buy the property. When the property is being financed by the owner, the interest rates and the tenure periods become more flexible. This kind of financing eliminates a bank intermediary and like in banks, eligibility criterias will not come into play.

A credit score is a 3 digit number that represents the evaluation made on a person's capability to repay loan amounts and other debts like credit card payments. Credit bureaus like CIBILTM, Experian, Equifax, CRIF HighMark provide credit scores that are calculated based on their credit history. Having a good credit score is a must as banks and NBFCs provide you the top credit cards or loans based on your credit score.

A state government pensioner can borrow for a home loan but eligibility of the applicant will reduce. Most banks entertain loan applications only from pensioners who draw a pension from the same bank. Some banks allow to take home loans with them even though you are not drawing pension from the same bank.

Availing for a home loan comes along with tax benefits. Home loan tax benefits can get you claims for interest deductions and principal amount deductions. Tax benefits on home loans are governed by different sections of the Income Tax Act. These tax benefits are claimed as tax deductions under different sections while filing the Income Tax Return.

Getting a home loan might not be a problem as long as you fit the eligibility criteria set by the bank or the NBFC. But it’s always smart to see how to save money while trying to pay off your EMIs on a regular basis.

Paying off home loans can be a burden and it might take years to pay them off. But there are people who are lucky to make a pre-closure of their loan. A pre-closure is made when the borrower is able to make a part or full payment of the home loan they availed for. So getting a sudden bonus might be helpful for you to pay off your home loan.

As long as you have a good credit score and meet the eligibility criteria for either of the loans, you can avail them. The lender has to be convinced enough to know that you would be able to handle both the loans and make payments regularly.

A credit score has a direct impact on your financial health. Not all financial products are offered to everyone, banks or any other lending institutes will look at your credit score before making any lending decisions. Your credit score describes the risk associated with your credit profile. If you have a low credit score, banks will be hesitant to sanction your credit application as they would feel you are too risky to take a loan.

A loan consists of two factors – Principal amount and Interest amount. The Principal amount remains the same for all the applicant irrespective of what their credit score is, but depends on their income. But what matter is or makes a difference is the interest rate, which majorly depends on your credit score. If you have a good credit score, the banks can trust your credit worthiness and your repayment capacity.

Applying for a home loan is not an easy task. Banks or lenders will look at certain important factors of the applicant, (like income, credit history, loan amount, eligibility, etc) before approving the loan. In some cases, the applicant may not be able to take a loan single-handedly. In such cases, the borrower can choose the option of having a co-applicant to get the loan without rejection.

No, you cannot convert your existing home loan to Pradhan Mantri Awas Yojana (PMAY). This scheme was launched by the Government of India in June 2015 with an intention of providing homes for the homeless by getting home loan from banks at subsidised interest rate. Following are the eligibility criteria to avail a home loan under PMAY.

×Thank you! Your question will be reviewed and posted shortly.

Post A Question

CreditMantri will never ask you to make a payment anywhere outside the secure CreditMantri website. DO NOT make payment to any other bank account or wallet or divulge your bank/card details to fraudsters and imposters claiming to be operating on our behalf.