If you are planning to borrow a sum of Rs.25 Lakhs towards the purchase, construction or repair of a property, the good news is that there are several banks that you can choose from. However, before you make that financial commitment, you should know how much 25 lakh home loan EMI you can expect each month.
Click here to calculate Rs. 25 Lakhs Home Loan EMI
Here are all the details required for you to choose a bank that is best suited for you to finance a new property.
Additional Info: You can also avail Canfin Home Loan
One factor that influences the EMI payable towards the loan is the tenure of the loan. 25 Lakh home loan EMI for 10 years varies significantly from a home loan that has a tenure of 30 years.
Before we delve into the details of the exact EMI to expect, let us understand how 25 lakh home loan EMI is calculated, to begin with.
An EMI is an Equated Monthly Installment. This is the repayment that you have to make towards your loan each month. Every bank uses a standard formula to calculate this EMI, which is E = [P x R x (1+R)^N]/[(1+R)^N-1]. Here P is the loan amount, R is the rate of interest and N is the tenure of the loan.
You can also calculate the EMI using an excel sheet with the PMT formula. Just click on the ‘=’ symbol and enter the formula PMT (rate of interest, period and loan amount). Then click on the enter button. Then, you can add the three variables:
Additional Info: You can also avail Bandhan Bank Home Loan
You can skip these complicated calculations entirely and make use of a 25 Lakh home loan EMI calculator. This is a financial tool that is available on all banking websites and finance-related websites. All you have to do is enter the parameters, namely the tenure, rate of interest and loan amount.
The calculator will apply the EMI formula and give you an accurate result. You can calculate 25 lakh EMI for 10 years or any other tenure in just a few seconds.
Calculating your EMI in advance will help you understand if a particular loan plan is affordable for you. You can plan your monthly budget accordingly and change parameters like the loan amount and tenure to reduce the EMI as per your convenience and affordability.
Additional Info: LIC Home Loan
Let us calculate 25 Lakhs home loan EMI for 30 years at an interest rate of 6.80% which is the most common offering by most banks:
Additional Info: Looking for 25 Lakh Home Loan? Check EMI & Apply.
Total Loan Amount | Monthly Installment/ EMI | Total Interest Paid | Total Amount Paid |
Rs. 25 Lakhs | Rs.16298.13 | Rs.33,67,327 | Rs.58,67,327 |
Let us reduce the tenure by 5 years to see how the EMI is affected by the tenure.
Total Loan Amount | Monthly Installment/ EMI | Total Interest Paid | Total Amount Paid |
Rs. 25 Lakhs | Rs.17352 | Rs.27,05,540 | Rs.52,05,540 |
You can use a 25 lakh home loan EMI calculator to check the exact interest payable towards the loan.
Total Loan Amount | Monthly Installment/ EMI | Total Interest Paid | Total Amount Paid |
FRs. 25 Lakhs | Rs.19083 | Rs.20,80,037 | Rs.45,80, 037 |
When you are calculating the EMI for an Rs.25 Lakh loan, the interest rate is the deciding factor when you are choosing the lender. Each lender offers different interest rates depending upon their internal policies.
Majorly, there are two kinds of Home Loan interest rates that are applicable when calculating a 25 lakh home loan EMI:
Irrespective of the type of interest rate that you opt for, there are many factors that determine the final rate of interest that is offered to the customer:
Additional Info: How to get Pradhan Mantri Awas Yojana
You can use the 25 lakhs home loan EMI calculator for various banks to compare the final amount payable.
Here is a list of popular banks that provide up to 25 lakhs home loans and the interest rate offered by them:
Name of the Lender | Rate of Interest |
Indian Bank | 6.50% onwards |
Kotak Mahindra Bank | 6.55% onwards |
Punjab and Sind bank | 6.50% |
LIC Housing Finance | 6.90% |
State bank of India | 6.70% |
HDFC Bank | 6.70% |
ICICI Bank | 6.70% |
Bank of Baroda | 6.50% |
Punjab National Bank | 6.75% |
The Home Loan eligibility criteria to avail of a loan for Rs.25 Lakhs are as follows:
The Documents Required for Home Loan are as follows:
Additional Info: Also check LRD Loan.
You can opt to increase the tenure of your loan to bring down the EMI. However, you must note that you will end up paying a higher amount towards the interest. So, it is advisable to negotiate on the interest rate if possible and ensure the lowest possible tenure.
You will have to enter the rate of interest, tenure and loan amount or use a slider to set these parameters. Then click on ‘Calculate’ to get the exact details of your loan.
In most cases, the borrower has to pay a margin of at least 10%. This depends upon the loan to value ratio offered by the bank that you have availed your loan from.
Any repayment made towards a home loan is eligible for tax deductions according to the Income-tax Act of 1961. You can get deductions on both the interest and the principal amount based on the type of property and the value of the property.
Most banks ask for a CIBIL score of at least 650-700 for an individual to be eligible for a home loan of Rs.25 lakhs.
Additional Info: Looking for 40 Lakh Home Loan? Check EMI & Apply.