A home loan can be one of the most practical ways to fulfil the dream of owning a home. Instead of exhausting your savings entirely, a loan allows you to preserve liquidity while still investing in your future. Even after using a portion of your savings or investments, many individuals choose to take a home loan to maintain financial flexibility and benefit from tax deductions on interest and principal repayments. This added buffer can help you comfortably manage costs such as home interiors or take care of unexpected expenses.

If you’re wondering what the EMI will be for an INR 25 lakhs home loan, this guide is for you. We’ll also walk you through the eligibility and documentation requirements you can expect, along with the application process.

What Is the EMI for an INR 25 Lakhs Home Loan?

If you’re planning to borrow, it is important to understand the key components that affect your monthly EMI for an INR 25 lakhs home loan:

• Borrowed Amount: The principal sum, INR 25 lakhs in this case, is the core loan amount on which interest is applied.
  
• Loan Duration: Most lenders offer repayment periods ranging from a few years up to 30 years*.
  
• Interest Rate: This is set by the lender and depends on factors such as your credit score, repayment capacity, income stability, and existing financial obligations.

You can use a home loan EMI calculator to input these variables and get a quick, realistic estimate of your monthly payments.
Illustrative Example:
At an annual interest rate of 10% for a 15-year tenure, the INR 25 lakhs home loan EMI would be approximately INR 26,865.

INR 25 Lakhs Home Loan EMI Details

Here is a table showing estimated INR 25 lakhs home loan EMIs at an interest rate of 10% per annum, across various tenures:

Disclaimer: Please note that the figures above are approximate and for illustrative purposes only. Your final EMI amount will depend on many factors and will be disclosed in the schedule shared with you after loan approval.

How to Apply for an INR 25 Lakhs Home Loan?

You can apply for an INR 25 lakhs home loan with the following simple steps:

• Check Eligibility
  Use the home loan eligibility calculator to ensure you meet the required criteria and estimate how much you may be able to borrow.
  
• Prepare Documentation
  Collect all necessary documents, including identity proof, address proof, income details, and property papers.
  
• Complete the Application
  Fill in the online application form with accurate personal and financial information. Submit it along with the required documents.
  
• Verification, Approval, and Disbursal
  Once your application is submitted, the lender will verify the information and documents. A representative may contact you for additional details or clarification. Upon approval, the sanctioned loan amount will be disbursed to your account, and your EMI repayment schedule will begin as per the agreed terms.

Eligibility Criteria for an INR 25 Lakhs Home Loan

Eligibility criteria can vary slightly between lenders, but here are the common requirements:

• Applicant must be a resident Indian.
• The minimum age at the time of application must be 21 years.
• Maximum age at loan maturity must not exceed 65 years.
• For salaried applicants: Must be employed with an MNC, listed public company, government organisation, private company, unlisted or closely held organisation, partnership or proprietorship firm.
• For self-employed applicants: Can include sole proprietors or individual business owners, professionals like chartered accountants and doctors, or partnership firms, private limited companies/closely held/unlisted companies.
• CIBIL score must be 700 or above.

*Please note that these are only the basic eligibility requirements. The final eligibility will depend on several factors, including the lender’s policy at the time of loan application.

Documents Required for an INR 25 Lakhs Home Loan

Here’s a list of commonly requested documents by lenders to process your INR 25 lakhs home loan application:

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For Salaried Individuals:

• Identity proof (PAN card, passport, etc.)
• Address proof (Aadhaar card, ration card, etc.)
• Latest salary slips (last 2-3 months)
• Form 16 or ITR (last 2 years)
• Bank statement for the last 6 months
• Property documents as requested by the lender

For Self-Employed Individuals:

• Identity proof (PAN card, passport, etc.)
• Address proof (Aadhaar card, ration card, etc.)
• ITR for the last 2 years with computation
• CA-audited financials (wherever applicable)
• Primary bank statement for the last 6 months
• Property documents as requested by the lender

*Please note that additional documents may be required based on your individual profile and the lender’s policy at the time of loan application.

INR 25 Lakhs Home Loan Features and Benefits

Opting for an INR 25 lakhs home loan comes with several advantages, such as:

• High Loan Amount: Suitable for purchasing mid-range to premium flats in metro or tier-2 cities.
  
• Flexible Tenure: Repay over a period going up to a flexible 30 years*.
• Tax Benefits (Under the Old Tax Regime):
  Deduction of up to INR 2 lakhs on interest paid under Section 24(b).
  Deduction of up to INR 1.5 lakhs on principal repayment under Section 80C.
  
• Competitive Rates:
  Reputed lenders offer competitive interest rates tailored to your requirements and financial profile.

Factors to Consider While Availing an INR 25 Lakhs Home Loan

Before you take the plunge, consider these essential factors to make an informed decision:

• Interest Rate Type: Consider whether the home loan interest rate is fixed or floating. Floating rates can fluctuate based on market conditions, which can affect your EMI over time.
  
• Prepayment Charges: As per the RBI guidelines, floating-rate home loans taken for non-business purposes typically do not have prepayment or foreclosure penalties. However, it’s wise to confirm this with your lender.
  
• Total Loan Cost: Apart from the interest rate, check for associated fees and charges (e.g., processing fees) that can impact the total cost of your home loan.
  
• Credit Score: A high score will improve your chances of approval with favourable terms, such as a lower interest rate.
  
• EMI Planning: Aim to keep your INR 25 lakhs home loan EMI within 40-45% of your net monthly income to ensure manageable repayment without compromising other financial goals.

Conclusion

A carefully planned INR 25 lakhs home loan can help you take a significant step toward homeownership while maintaining financial flexibility.

To make your journey to homeownership easier, SMFG Grihashakti offers home loans of up to 90%* of the property’s value at interest rates starting from only 10%* per annum and tenures of up to 30 years*. Apply online today or visit your nearest branch for personalised guidance.