At an average interest rate of 7.50% p.a., the monthly EMI for a ₹15 Lakh home loan will depend on the tenure.
If the tenure is 10 years, the EMI will be ₹17,805.
If the tenure is 20 years, the EMI will be ₹12,084.
If the tenure is 30 years, the EMI will be ₹10,488.
The tenure and interest rate of a loan directly affect your EMI amount. For this example, we are considering the loan amount to be ₹15 Lakh, and the interest rate to be 7.50% p.a.
A longer tenure reduces your EMI, but you end up paying more interest. However, a shorter tenure increases your EMI, while saving some bucks on interest.
Let’s understand how tenures affect the EMI amount and total interest and amount payable. You can use the Moneyview Home Loan EMI calculator to check how much interest you will have to pay based on your interest rate and tenure.
|
Loan Tenure (Years) |
Monthly EMI |
Total Interest Payable |
Total Amount Payable |
|---|---|---|---|
|
10 Years |
₹17,805 |
₹6,36,632 |
₹21,36,632 |
|
15 Years |
₹13,905 |
₹10,02,933 |
₹25,02,933 |
|
20 Years |
₹12,084 |
₹14,00,135 |
₹29,00,135 |
|
25 Years |
₹11,085 |
₹18,25,460 |
₹33,25,460 |
|
30 Years |
₹10,488 |
₹22,75,758 |
₹37,75,758 |
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The calculation of how much home loan you can get is never just based on your income or monthly salary. The FOIR (Fixed Obligation to Income Ratio) and the Debt-to-income ratio are two metrics used by lenders to understand how much loan they can approve for you.
The FOIR takes your fixed recurring commitments like other EMIs, rent, and bills into consideration against your income.
The Debt-to-income ratio considers all your monthly debt payments against your gross monthly income.
The lower these ratios or percentages, the higher the loan amount you can get.
In simple language, this means that you should have a considerable amount of funds to be able to pay off your loan. This depends on your income, but your other spending and obligations also matter.
Thus, if you want to get a higher home loan amount, it is advised to first reduce your other obligations. If you have any other small loans running, consider closing them before applying for a home loan.
When you apply for a loan, the interest and principal amount are considered. However, there are some other charges that you should enquire about. Here are some common fees and charges that banks and lenders have -
The processing fee is a non-refundable fee, and it is a percentage of the sanctioned loan amount. It ranges from 0.5% to 2% of the loan amount, and some lenders may have a minimum and maximum amount that they charge. Taxes are generally not included in the processing fee and are calculated on it.
This covers the charges required to verify the property’s legal titles and market value. Under this, an engineer visits the site and physically inspects it. These also have GST calculated on top of it.
This involves charges or taxes levied by the state government to legally register the property as collateral. Or to officially record the property as a mortgage, which means the bank has your original property deeds till you have paid off the loan. These also involve other minimal charges like document scanning charges, etc.
These involve fees that you have to pay if you miss an EMI, delay a payment, or your cheque bounces. Some banks might also have certain foreclosure charges if you want to close your loan earlier than scheduled.
Please note that, according to the RBI, banks cannot charge foreclosure fees for loans on floating interest rates.
Once your loan is completed, banks often charge a retrieval fee for returning your original property deeds.
These charges may vary depending on your bank or lender. Make sure to check what charges are involved, and read the loan agreement properly before signing.
The calculation of your EMI amount depends on a variety of factors like your principal amount, interest rates, and tenure. Before you apply for a loan, try various combinations of interest rates and tenures to get an idea of the one most suitable for you.
The Moneyview Home Loan EMI calculator is great for this as you can simply move the slider and check your options. You can also apply for a home loan through Moneyview’s lending partners like Aditya Birla Capital, Vridhi, Mahindra Home Finance, etc.
You can either apply via the Moneyview website or download the Moneyview app now.
The minimum salary needed to apply for a ₹15 Lakh home loan will depend on the eligibility criteria of the bank or lender you are applying from. However, in the end, apart from your salary, your debt-to-income ratio or your FOIR will play a bigger role in deciding how much salary is enough.
Using Moneyview’s SBI Home Loan EMI Calculator, assuming the interest rate is 8% p.a., the EMI for a ₹15 Lakh home loan for 5 years will be ₹30,415.
For this example, let’s consider that the rate of interest is 7.5%. So, your EMI on a ₹20 Lakh home loan for 10 years will be ₹23,740.
The EMI for a ₹40 Lakh home loan for 15 years at 8.5% p.a. interest will be ₹39,390.
Paying off small loans reduces your debt from your debt to income ratio, and you have more free funds to contribute towards your home loan EMI. That may help you get a loan on better terms.
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Disclaimer
The starting interest rate depends on factors such as credit history, financial obligations, specific lender's criteria and Terms and conditions. Moneyview is a digital lending platform; all loans are evaluated and disbursed by our lending partners, who are registered as Non-Banking Financial Companies or Banks with the Reserve Bank of India.
This article is for informational purposes only and does not constitute financial or legal advice. Always consult with your financial advisor for specific guidance.
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