Several factors must be considered while applying for the maximum home loan available. Because a home loan is the best method to fund the purchase of a property. However, it entirely depends on your income as well as your current liabilities. Your monthly income determines your eligibility for a specific amount, and your home loan interest rate is influenced by it. However, the majority of banks are willing to lend up to 85 % of the property’s value. Therefore, it is mandatory to first establish your affordability and check that you match the bank’s eligibility criteria in order to obtain the most money out of a home loan. Your home loans EMI is calculated by the bank based on your income along with your CIBIL score.
To calculate the EMI for a INR 25 Lac. home loans for a period of 15 years banks take into consideration a lot of factors like your income levels along with your age, CIBIL score, your employment status and a lot of other factors. You can benefit a lot from a home loan worth INR 25 Lac. You can even buy your first home or even renovate an already built property with the help of these funds. However, home loans are generally long term loans. Therefore, it is important to make sure that you do not fail in making your monthly repayments. Even if you fail to pay even a single EMI on your home loans. Your CIBIL score might take a hit.
INR 25 Lac. Home Loan Eligibility
It is equally important to make sure that you fulfill all the eligibility criteria before applying for a home loans to make sure that you get approval on your home loan application. Following is the basic home loan eligibility criteria that is generally common in all of the major banks:
- Must be a citizen of India.
- Salaried applicants should be between the age group of 23 years to 62 years old.
- Self-employed applicants on the other hand, shall be between the age of 25 years to 70 years.
- Salaried applicants must have a working experience for at least three years, with one year with the current company.
- Self-employed applicants on the other hand, must have their business running for at least 5 years.
- Basic documents like your Aadhaar and PAN cards, along with Form 16 or the most recent salary slips for the previous three months, P&L statement and balance sheets for the preceding two years are required.
- Account statement for the past six months.
You can use a home loan EMI calculator to find out the exact monthly repayment details for a home loan worth INR 25 lakh. Because it calculates your monthly payment amounts using critical criteria such as the loan’s principal amount, loan tenure, and the interest rate that is being offered to you based on your home loans eligibility. The EMI calculator is the most accurate tool for acquiring accurate information. As your loan period lengthens, your EMI will decrease, and vice versa. You will, however, end up paying a larger loan amount at the end of the term if you take out a longer loan term than if you take out a shorter loan period. Let’s assume the interest rate on the home loans application as 7% p.a. According to the EMI calculator, the EMI amount for a home loans worth INR 25 Lac. at an interest rate of 7% p.a. for a loan tenure of 15 years is INR 22,471. However, this EMI amount can change if the interest rate is different when you apply for a home loan.
Read Also:- Importance of CIBIL Score