20 Lakh Home Loan

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.

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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:

• Depending on your preferred bank’s eligibility policies, you can select a tenure of up to 25 to 30 years.
• The lowest rate at which home loans are offered remains around 8.50%.
• Your 20 lakh home loan EMI will be directly affected by your credit score and the current interest rate offered by the bank.
• Several banks charge a processing fee of up to 0.5%; however, many banks offer home loans at nil charges to customers.
• The lowest EMI that you need to pay for the lowest interest rate remains around 15,237/-
• If you want to repay the entire amount in the middle of your tenure, you can do so without paying any extra prepayment fees as per the policies of most banks in India.
• You can use the 20 lakhs home loan EMI calculator before you apply for a loan to determine which scheme suits your affordability the most.
• While using the online calculator, you can also check different combinations consisting of different tenures and interest rates. Finally, it will help you figure out which plan you need to go for.

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.

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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:

• Interest Rate: The current interest rate is one of the key factors that decide your 20 lakh home loan EMI. When the interest rate remains on the higher side, your monthly EMI will be higher and vice versa. First, compare different lenders policies and their offered interest rates to find out which scheme is the best for you.
• Credit Score: Your credit history and credit score play a huge role in determining whether or not you are an ideal borrower. Make sure your credit score is around 700 and above while applying for a 20 lakh home loan.
• Age: Most banks and financial institutes prefer younger applicants. If you are comparatively younger and are applying for a 20 lakh home loan, the chances of the approval of your loan application remain on the higher side.
• Tenure: Your 20 lakh home loan EMI will depend on the tenure you select while applying for the loan. The longer your tenure, the lower is your monthly EMI. Therefore, selecting a proper tenure with which you are financially comfortable makes a huge difference.

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.

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 8.50% 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.

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When you apply for home loan, it is extremely important to check whether you are financially comfortable with the monthly installment 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 installment will be around 40,937/- for the lowest interest rate of 8.50%. However, when you choose a longer tenure, your monthly installment 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.

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 8.50%, your monthly installment for a home loan of 20 lakh will be around 24,690/-

Your tenure directly affects your home loan 20 lakh. Your credit score for home loan plays a huge role in determining your monthly installments. Make sure you have a credit score of 750 and above to improve your chances of loan approvals.

Compare Best Home Loan Interest Rates starting @8.50% from multiple Banks and NBFCs.

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.

• Both salaried and self-employed individuals are eligible to apply for a home loan. However, you must be a minimum of 18 years if you want to apply for a 20 lakh home loan in India at the current time. 
• Both Indian and non-Indian residents can apply for home loans in the country.
• The maximum age to apply for home loans remains around 60 to 70 years, depending on different banks’ different policies.
• Although different banks may require different documents as per their terms and policies, there are several common documents that all banks require. These documents include your address proof – utility bills such as your electricity bill and water bills, identity proof – voter card, Aadhaar card, passport, driving licence.
• In order to be eligible to apply for a home loan, you must have a minimum salary of 35,000 per month, according to the policies of most banks and NBCFs in India.
• Home loan documents required include your bank statements for the past 6 months as per the review policies of most banks in India. In addition, many banks demand bank statements for longer periods. 
• Different eligibility criteria are applied to customers based on their profession and income details. For self-employed people, proof of the existence of their business and valid proof of their monthly income is required by banks apart from their identity and address proof.
• For salaried people, proof of their monthly income and payslips are necessary in order to be eligible for applying for a home loan. In addition, they must have work experience of at least three years when they apply for a 20 lakh home loan.
• For self-employed applicants, providing proof of their business stability of at least the last 5 years is required when they apply for a home loan.
• Your credit score must be 750 or above when you apply for a home loan. Make sure you pay your bills, EMIs, and debts timely to maintain a good credit score. If you do not have a decent credit score, it will affect your eligibility as a borrower. First, focus on increasing your credit score before applying for a home loan. You can also apply with a co-applicant who has a comparatively good credit score for a better chance of loan approval.

Check Loan Against Property Interest Rate for lowest LAP Interest Rates.

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.

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 8.50% - 10.05% 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 8.50%.

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