Dream homes are no longer a distant dream with the advent of affordable home loans provided by various financial institutions. For aspiring homeowners, securing a home loan has never been easier. Bajaj Finance offers affordable home loans amongst its diversified bouquet of services. A Rs. 15 lakh home loan at an interest rate of 10%, spread over a tenure of 10 years, is a viable option for a wide array of customers. This guide aims to provide a comprehensive insight into the process of calculating Rs. 15 Lakh Home Loan EMI, criterion for eligibility, benefits of this loan, and offers tips to manage the EMI effectively.
Beginning with the fundamental understanding, an EMI or equated monthly instalments is the sum paid towards the repayment of the principal amount along with the accumulated interest. This pre-determined amount is to be paid at regular monthly intervals over the term of the loan. The essential elements that determine the EMI are the loan amount, the interest rate, and the repayment tenure.
Features and benefits of Rs. 15 lakh Home Loan
The Rs. 15 lakh home loan holds an array of notable features and praiseworthy benefits. The primary highlight remains its affordability with Bajaj Finance ensuring accessible home loans to potential homeowners.
- Competitive interest rates: Financial institutions offer this home loan at a competitive interest rate of 10%, reducing the burden of repayment on the borrower.
- Extended tenure: The loan is set over a tenure of 10 years, facilitating manageability of EMIs, allowing borrowers to repay without straining their monthly finances too much.
- Flexibility: Customers have the flexibility to select their loan amount and structure their EMIs according to their financial comfort.
- Online access: Online accesses to borrowers enable them to check their loan statements, payment schedules, interest certificates, and more at their convenience.
Eligibility criteria for Rs. 15 lakh Home Loan
Basic eligibility criterion for availing the Rs. 15 lakh home loan is as follows:
- Age: The minimum age to avail of this home loan is 18 years, and the maximum age at maturity should be less than 70 years.
- Employment: The applicant should have a regular source of income. This ensures their ability to repay the loan. Bajaj Finance caters to both salaried and self-employed applicants.
- Financial stability: The lender will assess the financial stability of the applicant by considering their income, existing debts, credit score and repayment history among other factors.
- Property value: The property to be purchased should be legally clear, technically sound, and its market value should justify the loan amount.
Calculating Rs. 15 lakh Home Loan EMI with an interest rate of 10%
To calculate EMI, you can leverage the mathematical formula:
EMI = [P * R * (1+R)^N]/[(1+R)^N-1],
Where, P represents the loan amount, R signifies the monthly interest rate, and N is the number of instalments.
For instance, if you take a home loan of Rs. 15 lakh at a 10% interest rate for 10 years, the EMI comes out to be approximately Rs. 19,823. This computation provides an estimate of how much you need to put aside each month to repay the loan.
Use of Home Loan EMI Calculator for Rs. 15 lakh Home Loan
Manually calculating your EMI can sometimes prove to be a cumbersome task. Here is where the ‘Home Loan EMI Calculator’ comes in handy. This digital tool is specifically designed to accurately compute your EMI. All you need to do is enter the loan amount, tenure, and the interest rate, and the calculator will instantly reveal your EMI.
The tool is highly efficient, free of cost, and provides a quick result enabling you to plan your finances effectively. It also allows you to change the variables (loan amount, tenure, and interest rate) to see the change in the EMI amount, aiding you in choosing the correct loan structure for yourself.
Tips to manage Rs. 15 lakh Home Loan EMI efficiently
Adherence to the below-mentioned tips can ensure you to manage your Rs. 15 lakh home loan EMI efficiently:
- Ascertain affordability: Ensure that your EMI does not exceed more than 30-40% of your monthly income to maintain financial stability.
- Maintain a high credit score: A high credit score may help you avail the loan at a lower interest rate.
- Aim to make pre-payments: If you find yourself with some extra funds, consider making pre-payments.
- Choose insurance: Opt for an insurance cover on your home loan to safeguard against unforeseen circumstances.
- Utilise tax benefits: Do not forget to claim deductions on the payment of interest and principal under the Income Tax Act.
On a closing note, availing a Rs. 15 lakh home loan with Bajaj Finance is a beneficial and affordable option for potential homeowners. Understanding how to calculate the EMI and managing it effectively can smoothen the loan repayment journey, bringing you another step closer to owning your dream home.
