The EMI of your home loan will depend on the interest rate and the tenure. Let’s assume that you get a home loan of ₹25 Lakh at 8% p.a. The monthly EMI based on different tenures will be as follows -
For a tenure of 10 years, EMI = ₹30,332
For a tenure of 15 years, EMI = ₹23,891
For a tenure of 20 years, EMI = ₹20,911
For a tenure of 25 years, EMI = ₹19,295
For a tenure of 30 years, EMI = ₹18,344
As you can see, the EMI reduces as the tenure increases.
To get an understanding of how the tenure affects your home loan, let’s look at the following table. Here,
Loan amount = ₹25 Lakh
Rate of interest = 8% p.a.
And, we will calculate the following things for a range of 10 to 30-year tenures -
EMI Amount
Total payable interest
Total 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 |
₹30,332 |
₹6,36,632 |
₹21,36,632 |
|
15 Years |
₹23,891 |
₹18,00,434 |
₹43,00,434 |
|
20 Years |
₹20,911 |
₹25,18,640 |
₹50,18,640 |
|
25 Years |
₹19,295 |
₹32,88,622 |
₹57,88,622 |
|
30 Years |
₹18,344 |
₹41,03,881 |
₹66,03,881 |
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Loan Amount
Min ₹100,000
Max ₹100,000,000
Rate of Interest
Min 6%
Max 15%
Loan Tenure
3
months
Min 3 months
Max 72 months
The eligibility criteria of a home loan will vary greatly based on your creditworthiness, your financial behaviour, and other factors. Here are the general eligibility criteria for most banks -
You should be an Indian resident
Your age should be between 21 and 70 years
If you are salaried, your in-hand income should be at least ₹15,000
If you are self-employed, you should have an annual turnover of ₹3 Lakh
You should have a minimum CIBIL score of 600
Please note that these eligibility criteria have been taken from Moneyview’s lending partners and may vary based on your chosen bank or lender.
Moneyview SaysThe loan amount you can get does not depend on your salary alone. Your debt-to-income ratio and your Fixed Obligation to Income Ratio (FOIR) are taken into consideration. This means that you need funds after your monthly obligations have been met. 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 take a ₹25 Lakh home loan, you have the option to choose a floating, fixed, or hybrid interest rate. Let’s see how these choices can affect your home loan repayment process.
Floating interest rates fluctuate, and here are their details -
Directly linked to external market benchmarks
Market rate decreases, your EMI reduces
No prepayment penalties
The fixed interest rates remain locked, and here are their details -
The interest rate remains locked for a set tenure (hybrid interest rate), or the entire loan duration
If the market rates increase, your interest rates are protected. However, fixed rates are generally higher than floating rates
May attract foreclosure fees if closed early.
You can watch this video talking about the differences between floating and fixed interest rates.
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.
“What is the EMI for a ₹25 Lakh home loan?” is not a simple question with a straight answer. The first two factors it depends on are the loan amount and the rate of interest.
Both the loan amount and the interest rate, however, depend on multiple factors like your income, monthly obligations, other running loans and their EMIs, credit score, financial behaviour, etc. If all these factors are favourable, you can get a higher loan amount at a lower interest rate. That would mean that your EMI will also be affordable for you.
Taking a home loan is a big decision, and you should prepare for it years in advance. If you want to 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.
Let’s consider that the ROI for a ₹25 Lakh home loan for 5 years is 7.5% p.a. Then, according to the SBI Home Loan EMI Calculator by Moneyview, the EMI amount will be ₹50,095. You can check the interest rates for home loans from various banks to know the range of interest rates.
For this example, let’s assume that the ROI is 8% p.a. Then the EMI amount for a ₹20 Lakh home loan for a 30-year tenure will be ₹14,675. You can check your EMI easily by using the Moneyview home loan EMI calculator.
The amount of interest you will have to pay on a ₹25 Lakh loan will depend on the tenure and the rate of interest. If we assume, for this example, that the interest is 8.5% p.a. and the tenure is 25 years, the total interest amount paid will be ₹21,65,552.
Yes, you can get a ₹25 Lakh home loan if your salary is ₹30,000. Generally, having a salary of a minimum of ₹15,000 is enough to be eligible for a home loan. But whether you can get a loan or not will be decided on many factors apart from your salary.
If we assume that the ROI is 9% p.a. for a ₹26 Lakh loan for 10 years, your EMI will be ₹32,936.
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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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