Taking out an Rs. 8 lakh home loan can be an excellent way to realise your dream of owning a home. However, understanding the loan's monthly instalments or EMI and managing it efficiently is crucial to avoid financial stress. In this comprehensive guide, we will provide you with everything you need to know about calculating your Rs. 8 lakh home loan EMI and managing it efficiently.
Rs. 8 lakh Home Loan EMI with varying tenure
The tenure or repayment period of a loan affects its EMI. The longer the tenure, the smaller the EMI, and the shorter the tenure, the larger the EMI. Here is a breakdown of the EMI for an Rs. 8 lakh home loan with varying tenure for an interest rate of 10%:
- 20 years: The EMI for an Rs. 8 lakh home loan with a 10% interest rate and a 20-year tenure is approximately Rs. 7,954.
- 15 years: The EMI for an Rs. 8 lakh home loan with a 10% interest rate and a 15-year tenure is approximately Rs. 8,758.
- 10 years: The EMI for an Rs. 8 lakh home loan with a 10% interest rate and a 10-year tenure is approximately Rs. 10,252.
Features and benefits - Rs. 8 lakh Home Loan EMI
- Easy processing: The processing of an Rs. 8 lakh home loan is easy, and the documentation required is minimal.
- Competitive interest rates: The interest rates for Rs. 8 lakh home loans are competitive, making them affordable for most individuals.
- Affordable EMI: The EMI for an Rs. 8 lakh home loan is affordable, making it easier to repay the loan in a timely manner.
- Flexible repayment period: The loan repayment period or tenure is flexible, allowing individuals to choose a repayment schedule that suits their needs and financial situation.
How to calculate Rs. 8 lakh Home Loan EMI for interest rate of 10%
Calculating your Rs. 8 lakh home loan EMI can be a daunting process, but it is essential for understanding and managing the loan. Here is how to calculate your Rs. 8 lakh home loan EMI with a 10% interest rate:
EMI = (P × R × (1+R)^N)/((1+R)^N – 1)
Where,
P = Principal amount (i.e. INR 8,00,000)
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)
Using the Home Loan EMI Calculator for Rs. 8 lakh
An easier way to calculate your Rs. 8 lakh home loan EMI is to use a home loan EMI calculator. You can use Bajaj Finance's home loan EMI calculator on their website by filling the loan amount, tenure, and interest rate. The calculator will display your monthly EMI, interest payable, and total payable amount.
Tips to manage Rs. 8 lakh Home Loan EMI efficiently
- Budgeting: Creating a budget can help you prioritise loan repayments and better manage your finances.
- Additional repayments: Making additional repayments, even small ones, can make a significant difference in the long run and reduce the overall principal amount.
- Avoid missed payments: Timely payments are essential to maintaining a good credit score and avoiding late payment charges.
- Refinance: Refinancing your home loan can also help you save money on interest rates and reduce your overall cost.
Rs. 8 lakh home loans offer a way for many individuals to realise their dream of owning a home. With the right understanding and management, the EMI can be affordable and easily manageable. Consider speaking with a customer care executive from Bajaj Finance to learn more about their affordable home loan offers. By following these tips and utilising the home loan EMI calculator, you can efficiently manage your Rs. 8 lakh home loan EMI and enjoy your home ownership journey.
