Here is everything you should know if you have applied for a home loan of Rs 50 lakh.
Your home loan amount determines your monthly home loan equated to monthly instalment (EMI). The higher the loan amount, the higher is the EMI. Once you start paying the home loan EMI, you need to follow extreme financial discipline to manage the entire loan tenure. Hence, it is important to have some idea about the EMI amount for various loan amounts.
As a part of our series on Home Loan EMI, the Housing News is trying to help new homebuyers understand the implications of taking home loans of different values. In this article, we would talk about the EMI implications on Rs 50 lakh home loans.
Rs 50 lakh home loan eligibility
A home loan amount of Rs 50 lakh is considerably a large amount, and banks or institutions will assess your financial credibility and stability to be sure to lend you that much amount. They will consider a few things before approving your home loan request of Rs 50 lakh such as your age, residency, income, credit score and the loan-to-value ratio.
Age: Banks generally have 18 years as the minimum age limit to grant home loans in India. Some banks have a higher age limit barrier of 21 years.
Residency: Almost all banks offer home loans to residents as well as non-resident Indians.
Income: Your monthly income is the single biggest determinant of whether you will get a home loan amount of Rs 50 lakh.
Loan-to-value ratio: Banks don’t offer more than 80% of the property cost as home loans, especially if the loan size is over Rs 30 lakh. It means you can’t get a home loan amount of Rs 50 lakh for a property worth that if you are financially eligible to get this kind of loan. In this case, the bank will offer you only Rs 40 lakh (80% of Rs 50 lakh) as a home loan.
Credit score: You may have approached the bank offering the cheapest home loan. However, it is your credit score that decides if the bank will offer you its best rate. The cheapest rates are reserved for borrowers with a credit score of 800 and above.
Rs 50 lakh home loan documents
The bank checks your creditworthiness through the documents you have submitted. They ask for various documents at the time of submission of the home loan application. These documents include government-approved identity cards, current residency proofs, proofs of your employment, monthly salary, tax filing, and property documents. A list of documents is given below that act as proof:
Identity proofs: Driving licence, passport, Aadhaar card or voter ID
Address proof: Driving licence, passport, Aadhaar card, utility bills
Income proof: Last three months’ salary slips, last six months’ bank statements, latest Form-16, and IT returns
Property documents: Copy of allotment letter/buyer agreements, sale deed
Rs 50 lakh home loan EMI
The interest rate and the loan tenure would largely decide how much monthly EMI you will have to pay on Rs 50 lakh home loan. Considering the majority of the banks offering home loans at a 6.5% interest rate, we are using that rate as the benchmark to give you an indicative list of EMIs that you will have to pay during the various home loan tenure. Tables are given below for your reference.
EMI on a Rs 50 lakh home loan for 30 years
| Loan amount | Tenure | Interest | EMI |
| Rs 50 lakh | 30 years | 6.5% | Rs 31,603 |
EMI on a Rs 50 lakh home loan for 20 years
| Loan amount | Tenure | Interest | EMI |
| Rs 50 lakh | 20 years | 6.5% | Rs 37,279 |
EMI on a Rs 50 lakh home loan for 15 years
| Loan amount | Tenure | Interest | EMI |
| Rs 50 lakh | 15 years | 6.5% | Rs 43, 555 |
EMI on a Rs 50 lakh home loan for 10 years
| Loan amount | Tenure | Interest | EMI |
| Rs 50 lakh | 10 years | 6.5% | Rs 56, 774 |
Tips to apply for Rs 50 lakh home loan
- One should not be spending more than 40% of their monthly salary to pay home loan EMI. Make sure you stick with the cut-off.
- Keep all the paperwork ready to get your home loan application approved quickly.
- If you don’t have a good credit score, work to make it better. A good credit score is the only surety to get the best interest rate.
Source-https://housing.com/news/rs-50-lakh-home-loan-emi-all-you-want-to-know/
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