Must Knows

Rs 20 lakh home loan EMI: Based on interest rates in 2022

[ecis2016.org] Find out how much EMI you would pay every month on home loan of Rs 20 lakh, based on your tenure.

The money you would pay as EMI on your Rs 20 lakh home loan will depend on two factors— home loan interest rate and  loan repayment tenure. Now, lets find out how much money you would have to pay as Rs 20 lakh home loan EMI in 2022 for various tenures on prevalent home loan interest rates.

You are reading: Rs 20 lakh home loan EMI: Based on interest rates in 2022

20 lakh home loan EMI for various tenures

Loan tenure in years Home loan interest rate

*Calculated based on SBI’s current repo rate based home loan interest rate of 7.55%

 

Monthly EMI in Rs
30 7.55% Rs 14,053
25 7.55% Rs 14,845
20 7.55% Rs 16,177
15 7.55% Rs 18,597
10 7.55% Rs 23,793
5 7.55% Rs 40,123

 

[ecis2016.org] RBI monetary policy repo rate. Also know about CRR or cash reserve ratio

20 lakh home loan EMI: Year-wise break-up

20 lakh home loan EMI for 30 years

Loan amount Tenure Interest EMI
Rs 20 lakh 30 years 7.57% Rs 14,053

20 lakh home loan EMI for 20 years

Loan amount Tenure Interest EMI
Rs 20 lakh 20 years 7.55% Rs 16,177

Read also : Capital gains computation for encroached/litigated properties

 

20 lakh home loan EMI for 15 years

Loan amount Tenure Interest EMI
Rs 20 lakh 15 years 7.55% Rs 18,597

Read also : Capital gains computation for encroached/litigated properties

 

20 lakh home loan EMI for 10 years

Loan amount Tenure Interest EMI
Rs 20 lakh 10 years 7.55% Rs 23,793

Read also : Capital gains computation for encroached/litigated properties

 

20 lakh home loan EMI for 5 years

Loan amount Tenure Interest EMI
Rs 20 lakh 5 years 6.5% Rs 40,123

Read also : Capital gains computation for encroached/litigated properties

 

Remember, the longer the tenure, the lower the monthly EMI. The shorter the loan tenure, the higher the EMI. The home loan EMI amount might also change with a change in interest rates.

20 lakh home loan interest rate at leading banks in 2022

Bank Annual interest rate*
Union Bank 6.9%
LIC Housing Finance 6.9%
Bank of Baroda 7.40%
Punjab National Bank 7.40%
SBI 7.55%
Kotak Mahindra Bank 7.50%
HDFC 7.9%
Central Bank of India 7.75%
ICICI Bank 8.60%

*Last updated on June 18, 2022

20 lakh home loan EMI: Tenures offered by leading banks

30 years

25 year

20 years

15 years

7 years

5 years

Rs 20 lakh home loan eligibility

By and large, all banks have eligibility criteria for borrowers to receive home loans. These terms and conditions are about the borrower’s age, residency, income, loan-to-value ratio, credit score, and general financial condition.

  • Age: Most banks offer home loans to borrowers who are 18 years and above.
  • Residency: While some banks offer home loans to NRIs and Indian residents, certain banks offer home loans only to resident Indians.
  • Income: Only an income-generating individual can apply for a home loan. This income could be in the form of salary or business income.
  • Loan-to-value ratio: Banks typically offer home loans in an 80:20 ratio. This means while the bank will grant you 80% of the flat value, you have to arrange 20% of its cost on your own. The bank will, for instance, offer up to Rs 20 lakh home loan for a property worth Rs. 25 lakhs.
  • Credit score: Banks are more willing to give home loans to borrowers with an impressive credit history rather than those who have a weak credit history.
  • General financial condition: The general financial condition of the borrower is a key determinant of whether or not one will secure a home loan.

20 lakh home loan EMI : Documents needed

Read also : Lumpsum calculator: Know how to use an online lumpsum investment plan calculator

A borrower has to provide identity proof documents, address proof documents and income proof documents to secure a home loan. The title document of the property also has to be provided to get the home loan.

Listed below are the documents to be furnished along with the home loan application: 

Identity and residence proof

  • PAN card
  • Driving licence
  • Passport or voter ID

Proof of income

  • Last 3 months’ salary slips
  • Last 6 months’ bank statements, showing salary credits
  • Latest Form-16 and IT returns

Property documents

  • Copy of allotment letter/buyer agreement
  • Title deeds

Other documents

  • Own contribution proof
  • Employment contract/appointment letter in case current employment is less than one year old
  • Last 6 months’ bank statements, showing repayment of any ongoing loans
  • Passport size photograph of all the applicants/co-applicants to be affixed on the application form

Tips to apply for Rs 20 lakh home loan

  • Banks are more comfortable giving home loans to borrowers who will be spending 40% or less of their salary as home loan EMI. Choose a home loan tenure depending on the monthly income.
  • Apply for an Rs 20 lakh home loan with 6.50% annual interest for a 10-year tenure, only if the monthly income is Rs 55,000 or more. Alternately, choose a longer period of 15, 20 or 30 years so that the monthly EMI amount is affordable.
  • The bank will be willing to lend you the same loan amount if:

The loan tenure is 15 years and the monthly salary is Rs 44,000.

The loan tenure is 20 years and the monthly salary is Rs 38,000.

The loan tenure is 30 years and the monthly salary is Rs 32,000.

FAQs

What will be the EMI for 20 lakhs?

Considering an annual interest rate of 6.5%, the monthly EMI for home loan of Rs 20 lakh will range between Rs 12,641 and Rs 22,710 for various loan repayment tenure tenure.

What is the interest rate of 20 lakh loan?

Different banks charge different interest rates on home loans. At present, you can get a home loan for 6.40%-6.80% annual interest.

Source: https://ecis2016.org/.
Copyright belongs to: ecis2016.org

Source: https://ecis2016.org
Category: Must Knows

Debora Berti

Università degli Studi di Firenze, IT

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