Rs. 28 Lakh Home Loan EMI: Understand Your Monthly Payments

So, you are thinking of taking a home loan of Rs. 28 lakh. Great choice! But have you thought about how much the EMI (Equated monthly instalments) will be? It is essential to know your EMI beforehand so you can plan your finances and monthly budget. In this guide, we will show you how to calculate and estimate your Rs. 28 lakh home loan EMI and understand all the factors that influence it.

What is EMI and how is it calculated?

EMI stands for equated monthly instalments, which is the fixed amount you pay every month towards repaying your home loan. It includes both the principal amount and the interest charged by the lender. You can easily estimate your EMI using an online EMI calculator or the formula:

EMI=(1+R) N−1P×R×(1+R) N

Where:

• P is the loan amount (Rs.28 lakh in this case)

• R is the monthly interest rate (annual interest rate/12)

• N is the number of monthly instalments or tenure in months.

Factors that affect your Rs. 28 lakh home loan EMI

Your EMI amount depends on 3 main factors:

1. Loan amount: The bigger the loan, the higher the EMI. Here, the loan amount is Rs. 28 lakh.

2. Interest rate: The rate of interest set by the lender can significantly impact your EMI. A higher rate means a higher EMI. Look for competitive interest rates on home loans to reduce your monthly burden.

3. Loan tenure: The tenure or duration of your loan also affects your EMI. A longer tenure will lower your EMI, but you will end up paying more interest over time.

Estimating your Rs. 28 lakh home loan EMI

Let us assume different scenarios for a Rs. 28 lakh home loan. We will use different interest rates and tenures to show you how the EMI changes.

Scenario 1:

• Loan amount: Rs. 28 lakh

• Interest rate: 8.5% per annum

• Tenure: 20 years (240 months)

• EMI: Rs. 24,341

Scenario 2:

• Loan amount: Rs. 28 lakh

• Interest rate: 8.7% per annum

• Tenure: 15 years (180 months)

• EMI: Rs. 27,781

Scenario 3:

• Loan amount: Rs. 28 lakh

• Interest rate: 9% per annum

• Tenure: 25 years (300 months)

• EMI: Rs. 23,591

As you can see, even a small change in the interest rate or tenure can change your EMI significantly.

Why use an EMI calculator?

A home loan EMI calculator is a handy tool to get an exact estimate of your EMI. You just have to enter the loan amount, interest rate, and tenure, and it will give you an instant result. It is perfect for understanding how different factors affect your payments and choosing the best option for your financial situation.

Managing your finances with a Rs. 28 lakh home loan

When you are planning to take a Rs. 28 lakh home loan, it is important to ensure your home loan eligibility and that the EMI fits within your monthly budget. Financial experts recommend that your total EMIs should not exceed 50% of your monthly income. If your EMI payments are too high, you might struggle with other expenses like groceries, bills, or insurance premiums.

Here are a few tips to manage your finances better:

1. Choose a longer tenure: Opting for a longer tenure can reduce your EMI, making it more manageable. But remember, you will end up paying more interest in the long run.

2. Increase your down payment: By paying a larger down payment, you can reduce the loan amount and EMI. For example, if you pay Rs. 5 lakh as a down payment instead of Rs. 2 lakh, you will need to borrow only Rs. 23 lakh, which will lower your EMI.

3. Check for prepayment options: If you have extra funds or receive a bonus, consider prepaying a portion of your loan. This can reduce your principal amount and EMI.

4. Explore different loan options: Compare home loans from various lenders. Some may offer better interest rates, lower processing fees, or flexible repayment options.

Why choose Bajaj Housing Finance for your home loan?

Bajaj Housing Finance offers attractive home loan options with competitive interest rates, easy application processes, and flexible tenure options. If you are looking for a home loan that fits your budget and offers convenient services, Bajaj Housing Finance Home Loan could be the right choice.

Here are a few benefits of opting for a home loan with us:

1. High loan amount: Turn your dream of owning a home into reality with a home loan of up to Rs. 15 crore*.

2. Low interest rates: Enjoy interest rates starting at just 7.99%*  p.a., with EMIs as low as Rs. 722/lakh*.

3. Quick approval: Get your loan approved within 48 Hours* of application – sometimes even sooner.

4. Long repayment tenure: Repay your loan at ease with a flexible tenure of up to 32 years.

5. No foreclosure fee*: Individual borrowers opting for a floating interest rate can foreclose or prepay their loan at no extra charge.

6. Easy application: Skip the hassle with our doorstep document pick-up service, making the application process quick and simple.

7. Balance transfer facility: Transfer your existing home loan and enjoy a top-up loan.

So, if you are ready to take the next step and own your dream home, apply for Bajaj Housing Finance Home Loan today.