If you’re planning to purchase a home for yourself this festive season, then to arrange for the funds, the best option to consider is a home loan. Whether you belong to a town or a metro city, you can opt for a significant home loan of any amount between INR 1,00,000* to INR 500,00,000* to gain the ownership of your dream home. Typically, one consideration of loan amount among Indian families is INR 12 lakh.

When choosing a loan, the best feature to opt for is the INR 12 lakh home loan EMI structure. Repayment can become easy through monthly instalments throughout your loan tenure. Such EMI systems can also help you hold the money for longer to manage all your expenses.

About INR 12 Lakh Home Loan

For a housing loan, the principal amount of INR 12 lakh that you must take into consideration various fund applications like choosing a plot, location of home, type of society, current market value, and future scope of residence and development in the area. This type of housing finance requires collateral, but not necessarily a guarantor. In most cases, a home loan is given if the applicant is accompanied by a co-applicant who may/may not be the co-owner of the collateral property.

For the INR 12 lakh home loan EMI structure, there are several parameters that you have to consider before finalising the loan. You must know the interest rate, loan tenure, and the outstanding principal amount, with the formula to put it all together. Typically, the numbers are as follows:

• Interest rates: Starting from 9.5%* per annum for salaried, and 10.5% for self-employed.
• Tenure in months: Extending up to 30 years.
• Principal amount: Going up to INR 5 crore *.

EMI Calculation For INR 12 Lakh Home Loan

The EMI for a INR 12 lakh home loan is calculated using the following formula:

The alphabets are decoded as below:

E is your EMI of home loan for 12 lakh,
P is INR 12,00,000,
r is the monthly rate of interest,
n is your tenure in months.

Instead of going through tedious manual calculations yourself, you can simply use SMFG Grihashakti’s EMI calculator for home loan that gives you instantaneous results.

For example, at a 15% interest rate, the INR 12 lakh home loan EMI for 5 years will be:

Thus, this would amount to INR 28,548 per month as EMI and at the end of the tenure, the total payable amount for INR 12 lakh home loan EMI for 5 years will be INR 17,12,875.

Similarly, at an 8% interest rate, the INR 12 lakh home loan EMI for 10 years will be:

Thus, this would amount to INR 14,559 per month as EMI and at the end of the tenure, the total payable amount for INR 12 lakh home loan EMI for 10 years will be INR 17,47,117.

Eligibility And Documents Required

Eligibility Criteria:

• Salaried individuals must be associated with public listed companies, the government sector, private limited companies, or proprietorship firms.
• Self-employed persons must have experience with partnership firms or unlisted companies, and must be from the domain of doctors, architects, and chartered accountants.
• The age of the applicant must be between 21 and 65.
• Your CIBIL score must be 700 or above.

Apart from these basic requirements, factors like income, loan-to-value ratio, value of collateral, stability of employment, nature of home, and repayment capacity can also affect your home loan eligibility.

Documents Required:

• Proof of identity (AADHAAR or PAN card).
• Proof of residence (Ration card).
• Proof of income.
• Documents related to guarantor or co-applicant.
• Documents related to property in question.
• Additional documents like last 3 month’s payslip and Form 16 for the last 2 years if you are salaried.
• Self-employed individuals have to submit ITR for the last 2 years, balance sheets, and proof of business existence like PAN, GST registration, trade licence, etc.

Click here to know more about the documentation requirements.

How To Apply?

If you wish to apply for a home loan, you can log on to the website of your preferred NBFC and follow the instructions given. With NBFCs like SMFG Grihashakti, all steps can take place online, from application to submission of documents.

Follow these steps:

• Visit the SMFG Grihashakti website.
• Fill in your principal loan amount as needed.
• Select the type of loan you wish to take up.
• Enter your city of residence.
• Click on Apply Now.
• Verify your phone number through the OTP system.
• Once this is done, you will find yourself on a website asking for various pieces of information about you.
• You can apply from here after scanning and uploading your documents.

Conclusion

Home loans are a great way to secure your financial interests without hampering your dreams. If you are looking for affordable interest rates, comfortable repayment options, and an efficient INR 12 lakh home loan EMI system, then you must turn to SMFG Grihashakti. You can benefit from its 100% online application facility along with minimum documentation. Following the approval of your loan application, disbursal of funds will be initiated within 72 hours*.

More Read: What is the EMI for 15 Lakhs Home loan