Know Your EMI for a Rs. 20 Lakh Home Loan

Buying a home is a big step, one that often requires financial support in the form of a home loan. If you are planning to buy a house and needs funds of Rs. 20 lakh, taking a loan to finance it is likely a part of the process. However, while dreaming of your new home, you may find yourself asking an important question: What will the EMI for a Rs. 20 lakh home loan look like?

Understanding how your EMI is calculated is crucial, as it directly impacts your monthly finances. The EMI (equated monthly instalments) is the fixed amount you need to pay every month to repay the loan. The amount depends on several factors: the total loan amount, the interest rate charged by the lender, and the duration (tenure) of the loan. Knowing the EMI beforehand will give you a clear idea of your monthly commitments and help in budgeting your finances better.

Let us break down how you can calculate the EMI for a Rs. 20 lakh home loan at an interest rate of 8.5% p.a. across different tenures, so you can make an informed decision.

Key factors influencing home loan EMI

Before we jump into the calculations, let us take a quick look at the key factors that influence your EMI:

• Loan amount: This is the principal loan amount. For this example, it is Rs. 20 lakh.
• Interest rate: The rate charged by the lender for borrowing the money. In this case, we will assume an interest rate of 8.5% p.a.
• CIBIL Score: A score of 725 is considered good and can help you get a competitive interest rate.
• Tenure: The loan repayment period, which can range up to 32 years years.

The EMI is essentially the monthly instalments that covers both the interest and the principal. As you pay off the loan, the amount going toward the principal increases, while the interest portion decreases. The longer the loan tenure, the smaller the monthly EMI, but the total interest paid will be higher.

Now, let us take a look at the EMI for Rs. 20 lakh over various tenures.

Tenure	EMI (Rs.)	Interest payable (Rs.)	Total amount payable (Rs.)
5 years	41,033	4,61,984	24,61,984
10 years	24,797	9,75,657	29,75,657
15 years	19,695	15,45,062	35,45,062
20 years	17,356	21,65,552	41,65,552
25 years	16,105	28,31,363	48,31,363
30 years	15,378	35,36,177	55,36,177

How to use an EMI calculator for home loans

A home loan EMI calculator helps you estimate your monthly payments for a home loan. Here is how to use it:

• Input loan amount: Enter the total amount you wish to borrow.
• Interest rate: Enter the rate of interest offered by the lender.
• Loan tenure: Choose the loan tenure that you prefer.

The EMI calculator will instantly display your monthly EMI, which includes both interest and total amount payable. It is useful to experiment with different loan tenures and interest rates to find the most comfortable EMI for your budget. This tool gives clarity and helps in making informed decisions before applying for a loan.

Explore Bajaj Housing Finance Home Loan

Now that you understand how the EMI for a Rs. 20 lakh home loan works, it is important to remember that you do not have to navigate this journey alone. Bajaj Housing Finance Home Loan offers a hassle-free process, flexible repayment tenures, and competitive interest rates starting from 7.99%*  p.a.. With a loan approval within 48 Hours*, you can quickly move forward with your home purchase.

Documents required for a home loan

When applying for a home loan with Bajaj Housing Finance, you must provide certain documents for verification. Here is a list of documents:

• KYC documents: Identity and address proof like Aadhar card, voter ID, or passport.
• Proof of income: For salaried applicants, salary slips for the last 3–6 months. For self-employed individuals, a profit & loss statement for the last 2–3 years.
• Proof of business: For self-employed applicants, documents that validate your business.
• Bank statements: Recent bank account statements for the last 6 months to check your financial stability.

Eligibility criteria for a home loan

To qualify for a home loan with Bajaj Housing Finance, you must meet certain eligibility criteria:

• Nationality: You must be an Indian citizen and reside in India.
• Age: Salaried applicants must be between 23 years and 67 years. Self-employed professionals can apply between 23 years and 70 years. The upper age limit is considered at the time of loan maturity.
• CIBIL Score: A CIBIL Score of 725 or higher is ideal for securing a home loan at competitive rates. A good score reflects your creditworthiness and repayment ability.
• Occupation: Eligible applicants include salaried employees, self-employed professionals, and business owners.

Apply for a home loan with us now and take the next step toward owning your dream home.