Buying a new house is a dream of many. But lack of funds to buy a house has always been a major concern. Fullerton Grihashakti takes the financial burden off your shoulders by offering various home loans including an INR 20 Lakh home loan. Home loans are offered at attractive interest rates and flexible repayment tenures up to 30 years*. Other features include, smooth loan processing, transparent and easy loan application, reduced EMIs, etc. They help you create an asset that you can pass on to the next generation.
Eligibility Criteria for INR 20 Lakh Home Loan
There are certain eligibility criteria to be met for receiving a home loan. Mentioned below are some of them.
- Age: Borrowers who apply for home loans should be 22 years and above.
- Residency: The majority of Indian lenders offer home loans to resident Indians only.
- Income: The individual should have a source of income either in the form of salary or business income.
- Credit Score: Borrowers should have a good credit history. The ideal credit score should be 700 or more.
- Loan-to-value ratio: Usually only 90% of the property value is offered as a home loan. The remaining amount has to be arranged by the borrowers on their own. For example, you can get a maximum home loan of up to INR 20 Lakh home loan for an INR 25 Lakh property, assuming the lender agrees to an LTV of 80%.
- Financial Condition: The general financial condition of the borrower should be good enough to apply for a home loan.
Basic Documents Required for INR 20 Lakh Home Loan
- PAN and Identity proof: PAN card, Voters ID, or Driving License.
- Employment proof
- Income proof: Salary slips of last 3 months, last 2 years’ ITR, income statements for self employed, etc.
- Address proof: Aadhaar card, Ration card, property tax, water bill, electricity bill, etc.
- Bank account statements of the past 6 months
- Property related documents
20 Lakh Home Loan EMI Computation
The calculation of Equated Monthly Installments (EMI) depends on some factors. Such factors include the loan amount, interest rate, and tenure. Interest rates must be considered before borrowing as they can affect your overall cost of borrowing. The repayment tenure can be of 5,10,15,20,25 or 30 years. If you see the INR 20 Lakh Home Loan EMI enables you to get your dream home at an affordable cost. The below table shows the EMI breakup at varying tenures, assuming an interest rate of 7.99% per annum.
20 Lakh home loan EMI for 30 years
| Loan amount | Tenure | Rate of Interest | EMI |
| INR 20 Lakhs | 30 years | 7.99% | 14,661 |
20 Lakh home loan EMI for 20 years
| Loan amount | Tenure | Rate of Interest | EMI |
| INR 20 Lakhs | 20 years | 7.99% | 16,716 |
20 Lakh home loan EMI for 15 years
| Loan amount | Tenure | Rate of Interest | EMI |
| INR 20 Lakhs | 15 years | 7.99% | 19,101 |
20 Lakh home loan EMI for 10 years
| Loan amount | Tenure | Rate of Interest | EMI |
| INR 20 Lakhs | 10 years | 7.99% | 24,255 |
20 Lakh home loan EMI for 5 years
| Loan amount | Tenure | Rate of Interest | EMI |
| INR 20 Lakhs | 5 years | 7.99% | 40,543 |
It should be noted that the INR 20 Lakh Home Loan EMI for 5 years is higher than the EMI for 10 years tenure. Monthly EMI is less for longer tenures. Therefore, you should choose the loan amount and tenure carefully. The EMI amount will change with a change in the rate of interests. Grihashakti also offers an online home loan calculator which can be used for detailed breakups for repayment of a home loan.
INR 20 Lakh Home Loan EMI Calculator
The EMIs of an INR 20 Lakh home loan vary depending on the rate of interest and the tenure. With the help of a calculator, you can tweak these details for the desired results. The calculator is user-friendly and is available free of cost. To find out an accurate breakup of INR 20 Lakh Home Loan EMI, an online home loan calculator is the best tool to go with.
Useful Tip to Keep in Mind While Applying for an INR 20 Lakh Home Loan
Borrowers who spend 40% or less of their income towards repaying existing debts may easily get home loans, providing that they meet the other required eligibility criteria. Furthermore, the home loan tenure should be chosen based on the monthly income.
In Conclusion
The borrowing requirements for a property purchase differ from person to person. An INR 20 Lakh home loan is suitable for buying a mid-range property. Be smart enough to check the interest rates while you apply for home loans as it adds to the overall cost of borrowing. You may wish to have an easy home loan application process. Keeping in mind the above points will help you while applying for an INR 20 Lakh home loan.
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