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When you take out a home loan of ₹90 Lakhs, the repayment is spread out over your chosen tenure as monthly installments or EMIs. These payments include both the principal amount and the interest.
The EMI amount will depend on the loan amount, the interest rate, and the loan tenure.
Calculating EMI for ₹90 Lakhs Home Loan
EMI Calculations Examples:
Example 1: For a loan tenure of 10 years at an interest rate of 8.7% per annum, the monthly EMI amounts to ₹112,552.11/
Example 2: For a loan tenure of 20 years at the same interest rate of 8.7% per annum, the monthly EMI is ₹79,247.06.
Factors Affecting Your EMI
- Loan Amount: The higher the principal, the higher your EMI.
- Interest Rate: Secured lower interest rates can significantly reduce your monthly burden.
- Tenure: Longer tenures mean lower EMIs, but more interest paid overall.
Get the best Interest rate and tenure for a Rs 90 Lakhs Home Loan.
Tips for Managing Your Home Loan EMI
- Create a monthly budget to track expenses and ensure timely EMI payments.
- Maintain a fund to cover EMIs during financial setbacks.
- Make partial prepayments when possible to reduce the loan principal.
- Consider refinancing for lower interest rates.
- Limit taking on additional loans while managing your home loan.
- Set up automatic payments to avoid missing due dates.
- Periodically review your loan terms and financial situation.
- Choose a tenure that balances EMI affordability and total interest paid.
Case Studies: EMI Calculations for ₹90 Lakhs
The Influence of Interest Rates on EMI
Interest rates directly impact the EMI you’ll pay. Let’s examine how the EMI changes with different interest rates for a loan amount of ₹90 Lakhs.
Case Study 1: EMI at 8.5% Interest Rate
With an interest rate of 8.5%, the EMI for a 20-year loan tenure would be calculated as follows:
EMI= ₹78,104.09
Case Study 2: EMI at 8.7% Interest Rate
At a 8.7% interest rate, the EMI calculation changes:
EMI= ₹79,247.06
Case Study 3: EMI at 9% Interest Rate
For an interest rate of 9%, the EMI would be:
EMI= ₹80,975.34
Alternatively, you can use an online home loan EMI calculator to quickly determine your EMI by entering the loan amount, interest rate, and tenure.
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Interest Rates For ₹90 Lakhs Home Loan
The interest rate is one of the most critical factors that determine the overall cost of your home loan.
It directly impacts your monthly EMI and the total interest paid over the loan tenure. Currently, interest rates for ₹90 Lakhs home loans start from 8.70%p.a., but they may vary depending on the lender and your credit profile.
Even a slight difference in interest rates can have a significant impact on your financial obligations, so it’s essential to compare offers from multiple lenders and negotiate for the best possible rate.
Now, let’s explore how different interest rates affect your EMI for a ₹90 Lakhs home loan with a tenure of 20.00 years in more detail.
| Loan Amount | Interest Rate | Tenure | EMI |
|---|---|---|---|
| ₹90 Lakhs | 8.50% p.a. | 20.00 years | 78,104.09 |
| ₹90 Lakhs | 8.70% p.a. | 20.00 years | 79,247.06 |
| ₹90 Lakhs | 9.00% p.a. | 20.00 years | 80,975.34 |
Impact of Loan Tenure on ₹90 Lakhs Home Loan EMI
Apart from the interest rate, the loan tenure also plays a crucial role in determining your EMI. Let’s take a closer look at how different loan tenures affect your EMI for a ₹90 Lakhs home loan at an interest rate of 8.70% p.a.
| Loan Amount | Interest Rate | Tenure | EMI |
|---|---|---|---|
| ₹90 Lakhs | 8.70% p.a. | 15 years | 89,684.83 |
| ₹90 Lakhs | 8.70% p.a. | 20 years | 79,247.06 |
| ₹90 Lakhs | 8.70% p.a. | 25 years | 73,687.44 |
As evident from the table, a longer loan tenure results in a lower EMI, while a shorter tenure leads to a higher EMI. However, keep in mind that a longer tenure also means paying more interest over the life of the loan.
The table above demonstrates the inverse relationship between loan tenure and EMI.
- As the loan tenure increases, the EMI decreases, assuming the loan amount and interest rate remain the same.
- Opting for a longer loan tenure can make your monthly repayments more affordable.
- A longer tenure results in paying more interest over the life of the loan.
- It’s crucial to strike a balance between affordability and the total interest paid when deciding on the loan tenure.
Impact of CIBIL Score on ₹90 Lakhs Home Loan Interest Rates
Your CIBIL score is a vital factor that lenders consider when determining your interest rates.
- A CIBIL score of 750 or above can help you secure the most competitive interest rates for your ₹90 Lakhs home loan.
- A CIBIL score below 700 may result in higher interest rates, increasing the overall cost of your loan.
- Maintaining a good credit score is crucial for securing better loan terms.
- Make timely repayments on your existing debts to maintain a good credit score.
- Avoid excessive credit utilization to keep your credit score high.
Eligibility Criteria for ₹90 Lakhs Home Loans
Before applying for a ₹90 Lakhs home loan, it’s essential to ensure that you meet the eligibility criteria set by lenders. While the specific criteria may vary slightly among lenders, the following are the general requirements for a ₹90 Lakhs home loan:
| Criteria | Requirement |
|---|---|
| Age | 21 to 65 years |
| Minimum Income | Rs. 1,40,000 per month |
| Credit Score | 750 or above |
Application Process for ₹90 Lakhs Home Loans
Once you have determined your eligibility and calculated your EMI, you can proceed with the application process for a ₹90 Lakhs home loan. The following steps outline the general application process:
- Check your eligibility and gather necessary documents
- Apply online or visit the lender’s branch:
- Apply online via lender’s website
- Alternatively, visit the nearest branch
- Submit required documents:
- Provide necessary documents to the lender
- Lender verifies documents to assess eligibility and creditworthiness
- Wait for loan approval:
- Lender reviews profile and makes a decision
- Approval process takes a few days to a couple of weeks
Documents Required for ₹90 Lakhs Home Loans
To apply for a ₹90 Lakhs home loan, you will need to submit certain documents to the lender. The specific documents required may vary slightly among lenders, but the following are the most common documents needed:
- Identity Proof:
- PAN Card
- Aadhaar Card
- Passport
- Address Proof:
- Aadhaar Card
- Passport
- Voter ID
- Income Proof:
- For salaried individuals:
- Salary slips (last 3-6 months)
- Form 16
- Bank statements showing salary credits
- For self-employed individuals:
- Profit and loss statements
- Balance sheets
- Income tax returns (ITRs) for the last 2-3 years
- Bank statements
- For salaried individuals:
- Property Documents:
- Sale deed
- Builder agreement
- Registration documents
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Conclusion
Taking a ₹90 Lakhs home loan requires careful consideration and planning. Understanding interest rates, eligibility criteria, EMI calculations, and the application process is crucial to making an informed decision and choosing the best loan offer for your financial situation.
Compare offers from multiple lenders, negotiate for the best interest rates, and assess your repayment capacity before applying. Maintain a good credit score and provide all necessary documents to increase your chances of loan approval.
By following the information and guidance provided in this comprehensive guide, you can navigate the home loan process with confidence and take a step closer to achieving your dream of homeownership. Happy home buying! For any queries , contact our team of experts. – Credit Dharma.
Frequently Asked Questions
The minimum loan amount you can apply for is typically ₹5 lakhs, while the maximum amount can go up to ₹5 crores, depending on the lender and your eligibility.
You can calculate your home loan EMI using the formula EMI = P x R x (1+R)^N / ((1+R)^N-1),
where P is the loan amount, r is the monthly interest rate, and n is the tenure in months. Alternatively, you can use online EMI calculators provided by many lenders.
Your home loan interest rate can be affected by your CIBIL score, job profile, income, debt-to-income ratio, and the benchmark rate of lending (such as MCLR or RLLR)
Yes, most lenders allow prepayment of home loans, which can help reduce the principal amount and the overall interest paid. However, some lenders might charge a prepayment penalty, so it’s important to check the terms and conditions.
Various banks in India offer up to 90 percent home loan of the property value, depending on your eligibility and the property cost.
HDFC Home Loan
SBI Home Loan
