When making a home, it is common to fall short of finance. A small 20 Lakh home loan can be a great decision at such a stage. However, before you take a home loan, it is important to understand what will be 20 lakh home loan EMI and whether you are eligible for it or not to make informed choices.
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If you are buying your home soon, consider applying for a home loan. Home loans are granted by banks and other financial institutes in India to eligible customers who fulfil certain eligibility criteria. Different banks and NBCFs offer different home loan schemes to customers in the country. You can utilise a 20 lakh home loan for extension, renovation, and construction purposes. For example, if you want to build your home or use the money to buy certain furniture or extend your property, a home loan can help you fulfil all your property requirements without any hassle.
Managing your loan can be quite difficult at times without a proper strategy. Make sure you make a financial strategy to manage your expenses in the future before you apply for a home loan. It will make your repayment tenure hassle-free and help you make informed financial decisions in the future.
Irrespective of your age, financial background, and other details, a home loan can help you fulfil all your property requirements by providing to fit the monetary guidance you require. For example, a 20 lakh home loan can be quite versatile in terms of the ways you can utilise it.
Leading financial institutions and banks in India offer different home loan schemes to customers based on their credit history, financial status, and other details. For example, most banks in the country offer a 20 lakh home loan. However, the interest rate differs from one bank to the other for several factors.
The major factors that you need to keep in mind about a home loan of around 20 lakh include:
When you take a home loan of around 20 lakh, you can also get several home loan tax benefits from your bank if you fulfil certain eligibility criteria as per your bank’s policies.
Additional Info: Also check Union Bank of India Balance Check Number 2022
As far as your 20 lakh home loan EMI is concerned, the monthly instalments you will have to pay, depend on several factors. The main factors affecting your home loan EMI include:
Look at the table to understand different monthly instalments for different tenure. It will help you make a strategic plan and determine which scheme will suit your demands the best.
|Loan Amount||Tenure||Monthly EMI|
|20 Lakh||5 years||39,132/-|
|20 Lakh||10 years||22,710/-|
|20 Lakh||15 years||17,422/-|
|20 Lakh||20 years||14,911/-|
This is how your tenure affects your monthly instalments. The monthly instalment rates mentioned in the charts above have been calculated, keeping the lowest interest rate of 6.50% in mind. When you choose a shorter tenure for a 20 lakh home loan, your monthly instalments will remain on the higher side. Similarly, your monthly EMI will be on the lower side when you choose a tenure of up to 15 to 20 years.
Additional Info: Also check SBI Home Loan EMI Calculator
20 lakh loan EMI for 10 years depends on the interest rate offered by the bank as well as your credit score and other details.
On average, for the lowest interest rate of 6.50%, your monthly instalment for a home loan of 20 lakh will be around 22,710/-
Your tenure directly affects your home loan 20 lakh. Your credit score for home loan plays a huge role in determining your monthly instalments. Make sure you have a credit score of 750 and above to improve your chances of loan approvals.
Additional Info: Also check Allahabad Bank Balance Cheque Number
When you apply for home loan, it is extremely important to check whether you are financially comfortable with the monthly instalments or not. Select your tenure properly so that it does not get difficult to repay the loan amount in the middle of your tenure.
If you think you are comfortable with a 20 lakh home loan for 5 years, your monthly instalments will be around 39,132/- for the lowest interest rate of 6.50%. However, when you choose a longer tenure, your monthly instalments decrease along with it.
Use an online EMI calculator to figure out whether a tenure of five years is comfortable for you in terms of affordability or not.
You must check your preferred bank’s home loan eligibility criteria before you apply for a home loan. The criteria differ from one bank to the other at times. However, there are several common factors that are taken into consideration by all banks and financial institutes in India while they review your loan application.
Additional Info: Also check DDA Housing Scheme
Different banks offer different interest rates when it comes to home loans in India. The lowest interest rate remains at around 6.50%. The leading banks that offer 20,00,00 home loans to customers include SBI Bank, Axis Bank, Canara Bank, Bank of Baroda, ICICI Bank, HDFC Bank, RBL Bank, Yes Bank, Kotak Mahindra Bank, HSBC Bank, to name a few.
|Bank Names||Interest Rates|
|State Bank of India||6.65%|
|Kotak Mahindra Bank||7.00%|
|Bank of Baroda||6.90%|
|IDFC First Bank||6.90%|
These are the minimum interest rates offered by the leading banks for a 20 lakh home loan at the moment. Make sure you do sufficient research to figure out which interest rate you are comfortable with.
For instance, if you decide to take a home loan from the State bank of India, an interest rate of 6.80% will be applied. It will directly affect your monthly instalments. On the other hand, if you apply for a home loan at HSBC bank, your monthly instalments will be calculated as per the minimum interest rate of 6.45%.
Additional Info: Also check AnyRoR Gujarat Land Record
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The monthly instalments depend on your selected tenure. For a tenure of five years, the EMI for 20 lakhs will be around 39,132/- for the lowest interest rate of 6.50%
If you select a tenure of around 10 years, your monthly EMI will be 22,710/-
A minimum salary of around 25,000 per month is required in order to apply for a home loan of any amount.
On average, you can get a loan of up to 25 lakhs with a monthly salary of 30,000.
The State bank of India offers an interest rate of 6.65%- 7.55% for home loans.
A decent salary to apply for a home loan remains around 25,000/- per month.
Banks and financial institutes follow a formula- EMI=P × r × (1 + r)n/((1 + r)n - 1). P here stands for the principal amount, R stands for interest rates, and N stands for your selected tenure.
With a monthly salary of 25,000/-, you can get a home loan of up to 20 lakhs.