A 40 lakh home loan can be used in multiple ways. With a proper financial strategy, you will be able to utilise the loan in the best possible way in the future without any hassle. Make sure you take your time to do proper research regarding the scheme you apply for.
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A home loan can help you bring your dream of owning a house into reality. No matter whether you are looking forward to constructing your dream house or renovating or extending your existing house, a home loan can provide you with the necessary financial support that will help you fulfil all your property requirements without any hassle.
A 40 lakh home loan can be useful for many reasons. You can either use the entire amount for construction purposes or use the money to buy furniture or even extend a certain portion of your house.
Home loans are offered by several banks and other financial institutes in India to eligible customers based on their credit history, income details, and other details. Home loans are massive amounts that are extremely useful when it comes to your property requirements.
This article closely discusses all the details that you need regarding a 40 lakh home loan if you are intending to apply for one soon.
Tip: Check Credit Score before applying for a loan
There are several banks and financial institutes that offer home loans of several amounts to eligible customers across the country. Leading banks that offer home loans of up to 40 lakh include the State bank of India, Bank of Baroda, HDFC Bank, Bank of India, to name a few. Based on details such as your monthly income, credit history, financial status, and other details, your 40 lakh home loan EMI is decided by the bank officials during the review procedure after you apply.
Several factors that you need to keep in mind if you intend to apply for a 40 lakh home loan include:
Additional Info: Also check DDA Housing Scheme
If you are looking forward to applying for a loan of 40 lakh soon, the major factors that you need to keep in mind include:
Go through the chart to understand different interest rates and how they get affected by the tenure you select when you apply.
|Loan Amount||Tenure||Monthly EMI (Rs.)|
|40 Lakh||5 years||80,914/-|
|40 Lakh||10 years||48,320/-|
|40 Lakh||15 years||37,996/-|
|40 Lakh||20 years||33,209/-|
|40 Lakh||25 years||30,608/-|
|40 Lakh||30 years||29,072/-|
These instalment rates have been calculated based on an estimated interest rate of 7.90%. Make sure you check the current interest rate offered by your preferred bank when you apply for a 40 lakh home loan. When the interest rate increases, your monthly amount will increase along with it.
Use a 40 lakhs home loan EMI calculator to find out if you are comfortable with the payable instalment rates or not before you apply for a home loan.
Additional Reading: Check CIBIL Score by Pan Card
If you decide to take a home loan of 40 lakh for a tenure of 10 years, your interest rate will affect your monthly instalments immensely. For instance, for the lowest interest rate of 7.05%, your monthly instalments will be around Rs. 46,547/- if you choose a tenure of 10 years.
Your 40 lakh home loan EMI will be on the higher side higher if you choose a shorter tenure. And when you choose a longer tenure, your EMI will automatically decrease.
|Rate of Interest p.a.||EMI in Rs|
Rs.40 Lakh home loan EMI for 10 years @ rate of interest 7.90% p.a.
|1||Rs. 5,79,839.00||Rs. 3,06,234.00||Rs. 2,73,605.00||Rs. 37,26,395.00|
|2||Rs. 5,79,839.00||Rs. 2,83,819.00||Rs. 2,96,020.00||Rs. 34,30,375.00|
|3||Rs. 5,79,839.00||Rs. 2,59,568.00||Rs. 3,20,271.00||Rs. 31,10,104.00|
|4||Rs. 5,79,839.00||Rs. 2,33,330.00||Rs. 3,46,509.00||Rs. 27,63,594.00|
|5||Rs. 5,79,839.00||Rs. 2,04,943.00||Rs. 3,74,896.00||Rs. 23,88,698.00|
|6||Rs. 5,79,839.00||Rs. 1,74,229.00||Rs. 4,05,610.00||Rs. 19,83,088.00|
|7||Rs. 5,79,839.00||Rs. 1,41,000.00||Rs. 4,38,839.00||Rs. 15,44,249.00|
|8||Rs. 5,79,839.00||Rs. 1,05,049.00||Rs. 4,74,790.00||Rs. 10,69,458.00|
|9||Rs. 5,79,839.00||Rs. 66,152.00||Rs. 5,13,687.00||Rs. 5,55,771.00|
|10||Rs. 5,79,839.00||Rs. 24,068.00||Rs. 40,00,000.00||Rs. 0.00|
Additional Info: Also check AnyRoR Gujarat Land Record
Your tenure directly affects your monthly instalment rates immensely. For a shorter tenure of 5 years, your 40 lakh home loan EMI will be around 80,914/- per month for the lowest interest rate of 7.90%.
Additional Info: Looking for 30 Lakh Home Loan? Check EMI & Apply
In order to decrease your instalment rate, you can choose to go for 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 to apply for the right home loan scheme or not.
|Rate of interest p.a.||EMI in Rs|
Rs.40 Lakh home loan EMI for 5 years @ rate of interest 7.90% p.a.
|1||Rs. 9,70,971.00||Rs. 2,91,756.00||Rs. 6,79,215.00||Rs. 33,20,785.00|
|2||Rs. 9,70,971.00||Rs. 2,36,113.00||Rs. 7,34,858.00||Rs. 25,85,927.00|
|3||Rs. 9,70,971.00||Rs. 1,75,910.00||Rs. 7,95,061.00||Rs. 17,90,865.00|
|4||Rs. 9,70,971.00||Rs. 1,10,775.00||Rs. 8,60,196.00||Rs. 9,30,669.00|
|5||Rs. 9,70,971.00||Rs. 40,304.00||Rs. 40,00,000.00||Rs. 0.00|
Home loan eligibility is a subjective factor that differs from one bank to the other based on several matters. However, there are several common points that are taken into consideration by all banks and financial institutes in the country when they review your loan application before granting a home loan.
The age factor remains similar for all the banks and NBFCs in India.
Leading banks that offer home loans of 40 lakh to customers include Kotak Mahindra Bank, State Bank of India, Axis Bank, ICICI Bank, Union Bank of India, Punjab National Bank, Bank of India, HDFC bank, and various others. Go through the chart to compare and analyse the maximum and minimum interest rates to determine which scheme suits your affordability the most.
These are some of the leading banks in India that offer 40 lakh home loan to eligible customers. Make sure you compare and analyse different rates offered by all the contemporary banks before making the final call.
Additional Reading: Top Credit Rating Agencies in India
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Your monthly EMI will depend on your selected tenure. For a short tenure of around five years, your EMI will be around 79,299/-
On the other side, if you select a longer tenure of up to 20 years, your monthly instalments will be around 31,132/-
Your EMI also depends on the current interest rate that is offered by your preferred bank when you take a home loan.
Yes, you can apply for a home loan with a foreclosure. However, having a foreclosure affects your credit score badly which may affect your credibility as a borrower.
Visit the official website of your preferred bank and use a home loan EMI calculator and select the current interest rate offered to salaried people to check your EMI.
Your EMI will begin following the loan disbursal date on the due date in a month. For instance, if your loan is disbursed on 10th January, your first EMI will be deducted on 10th February.
A home loan amortisation schedule refers to a complete periodic table that contains all your loan payment details, including your principal amount and each payment detail till the end of your tenure.