A house loan is your best choice if you want to buy a property but lack the necessary financial stability. A home loan is also helpful when you need financial assistance to renovate or extend your existing property. For both purposes, you can consider opting for INR 10 lakh home loan from your preferred financial institution or bank. Today, several banks provide low-interest home loans, tax advantages, and incentives to qualified borrowers.
While a person takes a home loan to meet the shortfall in the funds required to buy a property, there are certain advantages to taking a home loan. You can apply for a home loan to avail yourself of the benefits through increased investment or tax savings. Continue reading to learn more about the 10 lakh house loan EMI, calculating the EMI and interest rate, eligibility, and documents needed.
10 Lakh Home Loan Details:
Several banks and NBCFs offer various home loan schemes to the residents of the country. For instance, you can apply for a housing loan of INR 10 lakh, which is often on the lower end of the scale. You can utilize the loan funds for home additions, construction, or improvement purposes if you like.
- You can avail of INR 10 lakh loan by opting for a bank or financial institution that offers the lowest interest rate.
- The maximum tenure to repay an INR 10 lakh loan is approximately 30 years.
- If you choose a more extended period, say up to 25 years or 30 years, the EMI for INR 10 lakh home loan will be on the lower side.
- Some banks offer instant home loan sanctions to customers with salary accounts. This instant approval is a pre-approved Home Loan, and the borrower can apply for a pre-approved home loan online and generate the sanction letter instantly in a matter of clicks.
- Most banks and financial institutions have no processing fee or fee up to 0.5% (plus GST) of the loan amount.
- The majority of banks offer free prepayment services.
- You can lower your interest rate by opting for a tenure between 5 and 10 years.
- You can use an online 10 lakh loan EMI calculator to determine your monthly installments in advance. To calculate your monthly EMI, choose your preferred principal amount, tenure, and current home loan interest rate.
- You can compare the various interest rates of different banks and NBCFs to choose a home loan finance company that best suits your needs.
- For a house loan of up to INR 10 lakh, you can also be eligible for certain benefits if you meet certain requirements specified by your bank.
Impacts On 10 Lakh Home Loan EMI Interest Rates:
The monthly EMIs for an INR 10 lakh house loan depend on many factors. The following are the key factors that significantly impact your home loan EMI.
If you are younger and you apply for an INR 10 lakh home loan, the chances that your loan application being approved are higher.
2) Interest Rates:
One of the critical factors affecting the INR 10 lakh house loan EMI amounts is your interest rate. Your EMIs will be higher if the interest rate is higher. To choose the best future plan, compare the interest rates given by different lenders.
When applying for a loan, the tenure you choose may affect your EMI for a 10 lakh house loan. Where the tenure is longer, your monthly EMI will be less.
4) Credit Score:
Your credit score and history are crucial aspects in deciding whether you will be a trustworthy borrower or not. When applying for a 10 lakh house loan, ensure a credit score of at least 700.
Documents Needed to Apply for An INR 10 Lakh Home Loan:
Today’s borrowing system has seen several improvements, and lenders now provide home loans with little to no documentation. Borrowers can acquire financial assistance without visiting offices and don’t have to bother filling out any paperwork. However, you will need to provide certain essential documents, such as the following:
- PAN card
- Identity Proof: voter’s ID, Passport, Driving License, Aadhaar Card, etc.
- Address Proof: Voter’s ID, Passport, Aadhaar Card, Driving License, R Property Tax, Ration Card, etc.
- Income Proof: Past 3 months’ salary slip
- Past 3 Years IT returns
- Certified Letter from Employer
- Form 16 for the Past Year
- Promotion Letter or Increment
- PAN card
- Identity Proof: Voter’s ID, Passport, Driving License, Aadhaar Card, etc.
- Address Proof: Identity Proof: Passport, voter’s ID, Driving License, Aadhaar Card, Property Tax, Ration Card, etc.
- Last 3 Years IT Returns
- Details of Business License
- Professional Practice License (Consultants, Doctors, etc.)
- Profit and Loss Account Statement and Balance Sheet of the Firm/Company (attested by a C.A.)
- Registration Certificate of Establishment (Factories, Shops, and Other Establishments) Proof of Business Address.
EMI Calculator for INR 10 Lakh Loan:
EMI = P*R *(1+R)^N/[(1+R)^N-1]
- P = Principal amount
- R = Interest Rate
- N = Tenure of Repayment (years/months)
Evaluating your EMIs is crucial in this aspect.
Follow these steps to use the EMI calculator for an INR 10 lakh home loan. This calculator is available in all banks and financial institution websites.
Step 1: Open the particular bank web portal and select the tab for “home loan.”
Step 2: Next, select “EMI Calculator” from the menu.
Step 3: Here, you must enter the relevant data (loan amount, rate of interest, and tenure) to determine the corresponding monthly installment amount. Make sure the details you are entering are accurate.
Step 4: To obtain the precise EMI result, after entering the above details, click “Submit.”
Home Loan EMI Calculations for Rs.10 Lakh
Home Loan EMI Calculations for Rs.10 Lakh below is an example of what the EMIs will be for an INR 10 lakh home loan for 20, 15, 10, and 5 years, respectively.
|Loan Amount||Tenure||Interest Rate||EMI|
|INR 10 Lakhs||20 years||7.9%||8302|
|INR 10 Lakhs||15 years||7.9%||9499|
|INR 10 Lakhs||10 years||7.9%||12080|
|INR 10 Lakhs||5 years||7.9%||20229|
Better financial planning results from a thorough understanding of the monthly payment you may have to make for a certain period. You usually base your decision on that to avoid getting caught in a debt trap.
Even for low-cost credit options, such as a house loan for INR. 10 lakh, calculating the EMI is important for better money management. An EMI calculator makes the decision-making and planning processes for loan repayment much easier.