Buying your dream house or upgrading to a more spacious home? If you are applying for a ₹40 Lakh home loan, knowing your exact EMI helps you manage your monthly budget without stress. This guide breaks down what is the EMI for a ₹40 Lakh home loan and the salary you need to get approved.
For a ₹40 Lakh home loan at a standard interest rate of 7.75% for a 20-year tenure, your monthly EMI will be ₹32,838. Over the full 20 years, you will pay a total interest of ₹38,81,106. The EMI can go up to ₹39,935, if your ROI is 10.5% p.a. The final EMI will depend on your specific interest rate and repayment period.
Planning a longer or shorter tenure? Here is how much EMI you will have to pay for a ₹40 Lakh home loan at 8% interest rate:
|
Loan Amount |
Tenure |
Interest Rate (p.a) |
Monthly EMI |
Total Interest Payable |
Total Amount Payable |
|---|---|---|---|---|---|
|
₹40 Lakh |
10 Years |
8% |
₹48,531 |
₹18,23,725 |
₹58,23,725 |
|
₹40 Lakh |
15 Years |
8% |
₹38,226 |
₹28,80,695 |
₹68,80,695 |
|
₹40 Lakh |
20 Years |
8% |
₹33,458 |
₹40,29,825 |
₹80,29,825 |
|
₹40 Lakh |
25 Years |
8% |
₹30,873 |
₹52,61,795 |
₹92,61,795 |
|
₹40 Lakh |
30 Years |
8% |
₹29,351 |
₹65,66,210 |
₹1,05,66,210 |
Your Dream Home is Now a Click Away
Your monthly EMI is
per month for 3 months
Total Interest
₹668
Total Amount
₹50,668
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
Using Moneyview’s ₹40 Lakh home loan EMI calculator is easy, saves time, and helps you plan ahead of time. To get your result, follow these steps -
STEP 1: Set the principal amount to ₹40,00,000.
STEP 2: Input the interest rate offered by the lender (e.g., 8%).
STEP 3: Select the tenure or the number of years you want to repay the loan in.
You can type in these numbers or adjust the slider to get to your desired value.
If the EMI exceeds 50% of your in-hand salary, use the calculator to increase the tenure to 25 or 30 years to bring the monthly cost down.
Let us understand how home loan EMIs are calculated. Suppose you are looking for a 40 Lakh home loan EMI for 10 years, and your rate of interest is 7.75%, then your EMI will be -
EMI = [P x R x (1+R)^N ] / [(1+R)^N-1]
= [40,00,000 X 0.0064 X (1+0.0064)^120] / [(1+0.0064)^120-1]
= ₹48,004
If the EMI amount seems too high for you, you can always opt for a longer tenure. A 40 Lakh home loan EMI for 20 years can help you in such a case. Let’s assume that the ROI is 7.75%, then,
EMI = [P x R x (1+R)^N ] / [(1+R)^N-1]
= [30,00,000 X 0.0064 X (1+0.0064)^240] / [(1+0.0064)^240-1]
= ₹32,838
Increasing your loan amount by ₹ 10 lakh significantly changes your financial profile.
At 9% for 20 years, a ₹30 Lakh loan costs ₹26,992 per month, while a ₹40 Lakh loan costs ₹35,989 per month.
The income requirement will vary, with it being higher for a ₹40 Lakh home loan.
The lender will expect a higher down payment for a ₹40 Lakh loan than for a ₹30 Lakh home loan.
Note: If you find the 40L EMI too high, you can view our 30 Lakh Home Loan EMI Guide to see if a slightly smaller loan fits your budget better.
The documents required to apply for a ₹40 Lakh home loan are -
Proof of income
Statement of primary bank account
Proof of permanent residence
Property documents
Latest Form 16
The eligibility criteria to apply for a ₹40 Lakh home loan through Moneyview’s partner lenders are as follows -
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
A ₹40 Lakh home loan can be procured for a 2 or 3BHK in a Tier II Indian city. With property prices rising, this might not be enough for a flat or property in a Tier I city.
Most lenders offer you a home loan of 60-72 times your gross monthly income. This means you will need a salary ranging approximately between ₹55,000 and ₹66,000 to apply for a loan of ₹40 Lakh.
However, the final loan amount offered to you will depend on the following factors -
Whether you are salaried or self-employed will play a big role in deciding your loan eligibility.
A higher CIBIL score would translate to a higher creditworthiness and a higher loan amount.
The younger you are, the better your chances of getting a higher loan amount. This is because you have longer to earn and repay the loan.
You will be able to get a higher loan amount if your property is in a better location and has a high value.
If you apply for a loan with a co-applicant who is earning and has a high CIBIL score; your will have higher chances of getting a bigger loan amount.
Calculating your EMI in advance has a lot of advantages. Since a home loan can go from about 10 to 30 years, planning your finances beforehand can help you manage it properly. That way, there will be fewer chances of missed payments.
The tenure of the loan can affect your EMI and the amount you pay as interest. Thus, you should choose an optimum tenure. A tenure that is too long might reduce your EMI, but you will end up paying a bigger sum as interest.
To know more or apply for a home loan through Moneyview, visit our website or download the app.
The EMI amount will depend on the loan amount, rate of interest, and the tenure of the loan. You can calculate your EMI using the Moneyview home loan EMI calculator.
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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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