For many of us, buying a home is a dream come true, and a home loan is the most viable means of achieving this dream. Going for a home loan of ₹23 lakh, for instance, is a great way to secure a future for oneself and one’s family, allowing us to set down roots and start to build a life. However, borrowing such an amount can be a daunting task, given the impact it has on our financial management. In this scenario, understanding the EMI structure and planning accordingly is essential.
This article focuses on the details of a ₹23 lakh home loan EMI, explaining the features, benefits, eligibility requirements, and the process of calculating the EMI. The intention is to provide you with the information you need to make an informed decision about your home loan with best financial institutions in India such as Bajaj Finance.
Rs. 23 lakh Home Loan EMI with varying tenure and rate
With an interest rate of 10%, here is how you can expect your monthly equated instalments (EMI) to pan out for different tenures:
- ₹23 lakh Home Loan EMI for 20 years: The EMI for a 20-year term comes up to ₹22,495 per month.
- ₹23 lakh Home Loan EMI for 15 years: The payment for a 15-year term would be around ₹24,664 per month.
- ₹23 lakh Home Loan EMI for 10 years: If you decide to repay within a ten-year span, the monthly obligation would be ₹30,321 approximately.
You can always use Online Home Loan EMI Calculator by Bajaj Finance to know about EMIs of different tenure and interest rates.
Features and benefits of a ₹23 lakh Home Loan EMI
A ₹23 lakh home loan could be your window to owning your dream home. Some of its merits include:
- Flexibility: You can choose a repayment term that suits your financial plan, typically anywhere between 10 and 30 years.
- Tax benefits: Under the Indian Income Tax Act, 1961, you can avail tax deductions on the principal repayment and the interest amount.
- Low interest rates: Home loans are secured loans, implying relatively lower interest rates.
Choosing Bajaj Finserv for your ₹23 lakh Home Loan
In the competitive market of home loan providers, Bajaj Finserv stands out with its diverse customer-friendly features. It offers competitive interest rates and flexible repayment tenures, ensuring your home loan does not disrupt your financial stability. The core speciality of Bajaj Finserv’s home loan is the balance of affordability, efficiency, and reliability it offers.
Eligibility requirements and documents for a ₹23 lakh Home Loan EMI
To qualify for a ₹23 lakh home loan, you must meet the following criteria:
- Aged between 18 and 70 years
- Have a regular income source
- Have a good credit score (725 or above)
Key documents required:
- Identity proof – Passport, PAN card, Voter’s ID card or Driving License.
- Residential proof – Driving License, voter’s ID card or utility bills.
- Income proof – Latest salary slips or Form 16
- Employment certificate from your current employer
- Bank statements of the last six months
Calculating Rs. 23 lakh Home Loan EMI
The calculation of a ₹23 lakh Home Loan EMI can be done using the EMI formula:
EMI = (P × R × (1+R)^N)/((1+R)^N – 1)
Where,
P = Principal amount (i.e. INR 23,00,000)
R = Monthly interest rate (i.e. 10%/12 = 0.00833)
N = Loan tenure or the number of monthly instalments (i.e. 240 for 20 years, 180 for 15 years, and 120 for 10 years)
For practicality and ease, you might want to use an online home loan EMI calculator.
Managing ₹23 lakh Home Loan EMI efficiently
Proper management of your ₹23 lakh home loan EMI leads to financial security. Here are some tips:
- Exploit windfalls: If you receive a bonus or a windfall profit, utilise it to prepay a part of the loan. It reduces the principal and, ultimately, the interest.
- Budgeting: It will help you curb unnecessary spending and create a pool to repay the EMI without stress.
- Additional payments: Making additional payments will save you on interest.
In conclusion, be sure to understand all aspects of the home loan EMI before choosing to dive in. A ₹23 lakh home loan can seem daunting, but with careful planning, it can quite seamlessly fit into your financial plan.
