10 Lakh Home Loan

If you are planning on buying a house soon and do not have enough financial stability, a home loan is the best option for you.

Even if you are looking for monetary support for the extension or renovation of your property, with a home loan, you can fulfil both purposes. Consider taking out a 10 lakh home loan from your preferred bank or financial institution for both goals in India. In addition, many banks offer home loans at low-interest rates and provide tax benefits and rewards to those who are eligible.

It can be not very comforting at times during your repayment duration if you do not meet any solid financial strategy beforehand. No matter what the principal amount of your loan is, it is best to plan how you will manage your finances during the repayment tenure and proceed accordingly.

Additional Info: Looking for 30 Lakh Home Loan? Check EMI & Apply

Several banks and NBCFs offer different home loan schemes to the citizens of the country. For example, a 10 lakh home loan usually remains on the lower side when it comes to home loans. You can utilise the money for renovation or extension purposes if you wish. You can also use it for construction purposes.

• You can get a 10 lakh home loan at the lowest rate of 6.50.
• The maximum tenure to repay your loan remains around 30 years.
• The processing fee for most banks remains nil or up to 0.5%.
• The 10 lakh home loan EMI remains on the lower side if you select a longer tenure of up to 25 years or 30 years.
• If you choose a tenure of five years, your lowest monthly EMI will be around 19,000/-
• Most banks offer prepayment services at nil charges. However, you can repay the entire amount in the middle of your tenure without paying any fees for the same.
• You can reduce your interest rate by selecting a shorter tenure of 5 to 10 years.
• You can calculate your monthly instalments beforehand by using an online 10 lakh loan EMI calculator. Select your preferred principal amount, tenure, and the current interest rate to get your monthly EMI. You can also try different combinations with different loan tenure, interest rates, and loan amounts to determine which plant suits your affordability the most.
• To find out the best home loan for your demands, you can compare different interest rates offered by various banks and NBCFs. 
• For a home loan of 10 lakh, you can also get several home loan tax benefits if you fulfil specific criteria prescribed by your bank.

You can Apply for 20 Lakh Home Loan

When it comes to the 10 lakh home loan EMI, the monthly instalments depend on a lot of factors. The significant factors that affect your home loan EMI include:

• Age: Many banks and financial institutes prefer younger applicants over those who are close to their 50s and 60s. If you are comparatively younger and applying for a 10 lakh home loan, your loan application’s chances of approval remain on the higher side.
• Interest Rate: Your interest rate is one of the significant factors that determine your 10 lakh home loan EMI amounts. When the interest rate offered by your preferred bank remains on the higher side, your monthly EMI will be higher. For a low-interest rate, your monthly instalments will also be on the lower side. First, compare different interest rates offered by other lenders to figure out the best scheme for the future.
• Tenure: Your 10 lakh home loan EMI will depend on the tenure you select while applying for the loan. The longer the tenure, the lower the monthly EMI will be.
• Credit Score: Your credit history and credit score have a considerable role to play when it comes to deciding whether you are a responsible borrower or not. Make sure you have a good credit score of at least 700 and above when you apply for a 10 lakh home loan.

Take a look at the chart to understand your monthly instalments for a home loan of 10 lakh at the lowest home loan interest rate of 6.50%.

If you get a 10 lakh home loan for a short tenure of 5 years, the EMI will be around 19,566/-. On the other hand, your instalments will decrease if you go for a longer tenure of up to 15 years or 20 years.

Additional Info: Also check DDA Housing Scheme

If you decide to take a home loan of 10 lakh for a tenure of 10 years, your interest rate will have a massive role in determining your monthly instalments. 

For instance, for the lowest interest rate of 6.50%, your monthly instalments will be around 11,355/- if you choose a tenure of 10 years.

Your 10 lakh home loan EMI will be higher if you choose a shorter tenure and vice versa. 

Your credit score for home loan plays a considerable role in determining your monthly instalments. Make sure you have a credit score of 750 and above to improve your chances of loan approvals.

Your tenure directly affects your monthly instalments. For a short tenure of around five years, your 10 lakh home loan EMI will be about 19 566/- per month for the lowest interest rate of 6.50%.

In order to decrease your instalment rates, choose a longer tenure of up to 15 years or 25 years. 

In order to determine which scheme suits your affordability the most, you can choose the home loan EMI calculator online. It will give you an exact amount that you will need to pay on a monthly basis during your repayment tenure. Try different combinations to determine whether you are going for the right plan or not.

Additional Info: Also check Pan Number for Banks

Home loan eligibility differs from one bank to the other based on several factors. However, there are several common points that are taken into consideration by all banks and financial institutes in India while reviewing your loan application.

• You must be at least 18 years old in order to apply for a 10 lakh home loan at any bank or financial institute in India.
• Both salaried and self-employed individuals are eligible to apply for a home loan.
• Both Indian and non-Indian residents are eligible to apply for home loans in India.
• The LTV remains up to 90% when you take a 10 lakh home loan.
• The maximum age to apply for home loans remains around 60 to 70 years, depending upon the different policies of different banks.
• The typical documents required for home loan include your identity proof – voter card, Aadhaar card, passport, driving licence; Address proof – utility bills such as your electricity bill and water bills.
• Home loan documents required include your bank statements for the past six months on average. Many banks demand bank statements for more extended periods.
• For salaried people, proof of their monthly income and payslips are necessary in order to be eligible for applying for a home loan.
• For self-employed people, proof of the existence of their business and evidence of monthly income is required, along with their identity and address proof.
• In order to be eligible to apply for a home loan, you must have a minimum salary of 25,000 per month, according to the policies of most banks and NBCFs in India.
• For salaried people, work experience of at least three years is required when they apply for a 10 lakh home loan.
• For self-employed people, proof of their business stability of at least five years is required for loan approval.
• You must have a credit score of 750 or above to make sure your loan application is approved by the bank. If you have a poor credit score, focus on improving your credit score before applying for home loans. You can also apply with a co-applicant who has a good credit score for a better chance of loan approval.

Different banks offer different home loan schemes in India. For a 10 lakh home loan, different banks provide tax benefits and other rewards to those who are eligible. Leading banks that offer home loans of 10 lakh include Kotak Mahindra Bank, Bank of India, HSBC Bank, HDFC Bank, IDBI Bank, Punjab National Bank, DBS Bank, Andhra Bank, SBI Bank, Axis Bank, ICICI Bank, Canara Bank, to name a few.

Go through the chart to analyse different interest rates offered by different leading banks in India to figure out which scheme will suit your demands the best.

These are some of the leading banks in India that offer different home loan schemes that you must go through before applying for a home loan. Compare and analyze different interest rates to finalise which scheme you want to go for. For instance, 10 lakh home loan EMI SBI will be calculated for a minimum interest rate of 6.75%. On the other hand, Kotak Mahindra bank will allow you to take a 10 lakh home loan for the lowest interest rate of 6.50%.

Instead of directly going for the lowest interest rate for low monthly installments, make sure you also check the home loan tax benefits and other perks of that particular home loan scheme before you apply. Also, compare the scheme with other similar home loan schemes offered by other banks and financial institutes before you make the final call.

Additional Info: Also check AnyRoR Gujarat Land Record