25 Lakh Home Loan

Building a home can be quite intimidating for many people for different reasons. Therefore, it is necessary to be financially comfortable while you build your dream home.

No matter whether you want financial support to construct your home or renovate and extend it, home loans can be extremely beneficial. Home loans are granted by banks and financial institutes to the eligible customers who require them.

A 25 lakh home loan can serve multiple purposes. You can either use it for construction purposes or renovation and extension purposes. However, without a proper financial strategy, managing your expenses during the tenure can be quite difficult at times. Firstly, you need to make sure you make a good financial strategy that will help you to manage your expenses in the future before you apply for a home loan of any amount from your preferred bank. It will make your repayment tenure hassle-free and will also help you manage your expenses well during your repayment tenure.

If you want to get a 25 lakh home loan soon, go through this article to get all the details regarding the home loan, eligibility terms, different schemes, and other necessary details.

Different banks and financial institutes offer different home loan schemes in India to eligible customers. For example, you can get a 25 lakh home loan from your preferred bank after going through all their terms and conditions.

Based on your monthly income, credit history, financial status, and other details, your monthly instalments are determined by the bank officials. The interest rate differs from one bank to the other depending on several factors.

Major things to keep in mind before applying for a home loan of 25 lakh include:

• You can select a tenure of up to 30 years, depending on your portability.
• The lowest rate at which home loans are offered by banks, and financial institutes in India remains around 6.50%
• Your credit score directly affects your monthly instalments after you take out a 25 lakh home loan.
• A processing fee of around 0.5% is charged when you take a home loan. However, many banks also offer their services at zero processing fees.
• The lowest EMI that you will have to pay remains around 18,639/- on an interest rate of 6.50% for a tenure of 20 years.
• You can use the 25 lakhs home loan EMI calculator before you apply for a loan to determine which scheme suits your demands the best.
• While using the online EMI calculator, you can also try out several combinations with different tenures, principal amounts, and interest rates which will help you find out which plan suits you the best.

Many banks offer pre-payment services at zero cost. However, you can pay the rest of the amount in the middle of your tenure if you wish without paying any extra fees after you take out a 25 lakh home loan.

As far as a 25 lakh home loan EMI is concerned, the monthly instalments that you have to pay depend on various factors. The major factors that directly affect your home loan EMI include:

• Credit Score: Your credit history and credit score play a huge role in determining whether or not you are an ideal borrower. Make sure you have a decent credit score of around 750 and above while applying for a 25 lakh home loan.
• Interest Rate: The current interest rate offered by the bank you choose is a major factor that helps in determining your 25 lakh home loan EMI. If the interest rate remains high, your monthly EMI will be high as well. However, for a comparatively low-interest rate, your payable EMI rates will also decrease. First, compare different lenders offered interest rates to figure out the best scheme for the future.
• Age: Many banks, as well as financial institutes in India, prefer younger applicants when it comes to comparatively longer tenures. If you belong to the age group of 20-40 years who is applying for a 25 lakh home loan, chances of the approval of your loan application remains high compared to those who are close to entering their 50s or 60s.
• Tenure: Your 25 lakh home loan EMI directly depends on the tenure you select when you apply for the home loan in your preferred bank. The longer the tenure, the lower the monthly EMI will be. Therefore, selecting the right tenure that you are financially comfortable with makes a huge impact in determining your monthly instalments.

Additional Info: Also check SBI Home Loan EMI Calculator

Go through the chart to compare and analyse different monthly instalment rates for different tenures offered by the banks. It will help you decide which scheme you should go for while applying for a home loan.

The monthly instalments have been calculated in this chart keeping the lowest interest rate of 6.50% in mind. The instalment rates will differ based on the interest rate applied to you during application. If you want to reduce your monthly instalments for the 25 lakh home loan, go for a longer tenure of around 15 years to 20 years. Similarly, when you choose a short tenure of around five years, your monthly EMI will be on the higher side. Look for the lowest interest rates on home loan when you apply.

A 25 lakh home loan EMI  for a tenure of 10 years depends on the current interest rate offered by the bank when you apply.

On average, your monthly instalment for a home loan of 25,00,00 will be around 28,387/- for the lowest interest rate of 6.50%.

If the interest rate increases, your monthly instalments will also increase along with it. Your credit score for home loan plays a crucial role in determining your monthly instalments matter what the tenure is. Focus on improving your credit score before you apply for a home loan.

Your 25 lakh home loan EMI for 5 years depends on the current interest rate that is offered by your preferred bank or financial institute.

For the lowest interest rate of 6.50%, your monthly EMI will be around 48,915/- for a tenure of 5 years. If you want to reduce the monthly instalment rate, go for a longer tenure of around 15 to 20 years.

Make sure you use a home loan EMI calculator before applying for a home loan to determine the tenure you are financially comfortable with.

When you go for a 25 lakh home loan EMI for 30 years, your monthly payable rates will remain on the lower side. 

For the lowest interest rate of 6.50%, your monthly payable instalment rate will be around 15,802/-

In order to increase your monthly instalment rates, you can consider shortening your tenure. 

If the interest rate increases, the monthly instalments will also increase along the way. Therefore, go for the lowest interest rate to keep your monthly instalments on the lower side.

Additional Info: Also check DDA Housing Scheme

You must check the home loan eligibility criteria of your preferred bank before you apply for a home loan. The criteria differ from one bank to the other at times. However, certain common factors are considered by all banks and financial institutes during the review process of your loan application. Some of these most common factors that you need to keep in mind before applying for a home loan are:

• Both self-employed and salaried individuals are eligible to apply for a home loan. You must be a minimum of 18 years if you want to apply for a 25 lakh home loan in the country.
• Both Indian and non-Indian residents can apply for home loans in the country.
• 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.
• The maximum age of applying for home loans of bug amounts of up to 25 lakh remains around 60 to 70 years based on various policies of the banks and financial institutes.
• The common documents required for home loans include your KYC documents-  identity proof – voter card, Aadhaar card, passport, and driving licence- address proof such as your utility bills such as your, and water bills, electricity bills in order to apply for a home loan.
• If you want to apply for a home loan, you must have a fixed minimum salary of around 25,000 on a monthly basis as per the policies and terms of most banks and non-banking financial institutes in India.
• Different banks may require different documents as per their policies, there are several basic documents that you need to provide to all banks while applying for a home loan. The most common home loan documents required include your bank account statements for at least the last 6 months as per the policies of most banks.
• Different eligibility criteria may be applied to customers based on their profession, credit history, and income details. For self-employed people, proof of the existence of their business and proof of monthly income is required along with 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.
• For salaried people, work experience of at least three years is required when they apply for a 25 lakh home loan.

Different banks offer different interest rates when it comes to a 25 lakh home loan. The top banks that offer home loans of 25 lakh include HSBC Bank, HDFC Bank, RBL Bank, ICICI Bank, Kotak Mahindra Bank, RBL Bank, Indian Bank, Bank of Baroda, Punjab National Bank, to name a few.

These are the different interest rates offered by the leading banks in India. Do sufficient research before applying for a home loan so that you can select the proper scheme for your demands. For instance, SBI home loan 25 lakh EMI is calculated for an interest rate of 6.75%. On the other hand, if you apply for a home loan at the HSBC Bank, the interest rate that is offered remains around 6.45%.

Additional Info: Also check Sukanya Samriddhi Yojana