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What is the EMI for an INR 5 Lakhs Home Loan?

Nov 11, 2022
What is the EMI for an INR 5 Lakhs Home Loan?

Buying a home is a dream for many in India. The financial decision that follows this desire involves budget planning, taking a loan, choosing a real estate plot, and much more. Home loans for securing a housing property can range from INR 1,00,000 to INR 80,00,000 too. Your principal amount will depend upon a lot of factors like your salary, creditworthiness, market value of land, etc., and typically, you can avail a loan of up to 90% of the value of your chosen mortgaged property.

Commonly, individuals choose a home loan of INR 5 lakhs. The repayment is done through EMIs over a certain period of time with interest. This article talks in detail about the EMI for an INR 5 lakhs home loan.

INR 5 Lakhs Loan EMI - Details

For a home loan of INR 5 lakhs, many lending institutions like SMFG Grihashakti offer affordable interest rates and comfortable tenures to people looking for good housing finance. There are several factors that must be considered by the financial firm before approving the home loan. Some of them include the candidate’s age and job profile, the type of employment and organization; the person’s monthly income, the latest credit score, and the valuation of the property in question.

Under this limit of secured home loans, you will be required to give collateral to the lending body of approximately the same valuation that the lender can sell in the case of a default.

For the EMI for INR 5 lakhs home loan, the benefits are as follows:

  • You can easily repay the loan amount without additional financial stress to your wallet.
  • The EMI system keeps your savings intact since you can plan your monthly budget according to the interest rates and tenure.
  • A smaller loan size implies higher chances of replayability, hence, your credit score can remain healthy.

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

To make the instalments of the EMI for a home loan of INR 5 lakhs, you can choose any of the following methods:

  • The Electronic Clearance Service (ECS) system: Your EMI will directly be debited monthly.
  • Pay Online: Your EMI can be paid through UPIs, netbanking, or debit card.
  • Post-dated cheques: Your EMI can be paid through the submission of post-dated cheques done offline.

EMI Calculation

The formula for INR 5 lakhs home loan EMI is given below:

EMI Calculation

The alphabets are decoded as below:

E is your EMI for home loan of INR 5 lakhs,
P is INR 5,00,000,
r is the monthly rate of interest,
n is your tenure in months.

Instead of replacing the symbols with numbers yourself and going through tedious calculations, you can simply use SMFG Grihashakti’s online EMI calculator for home loans, which gives you instantaneous results.

Eligibility and Documents Required

Eligibility for INR 5 Lakhs Home Loan

The basic eligibility criterion is that the applicant must be of Indian nationality, between the ages of 21 and 60 (if employed) or 65 (if self-employed), and must hold a CIBIL score of 700 at the least.

Other important conditions are listed below:

  • Salaried persons must be under either MNCs, or government bodies, or public limited organisations.
  • Self-employed individuals must be either in sole proprietorships, partnerships, private limited companies, or unlisted firms. They must be either doctors, CAs, or architects.
  • The minimum annual salary must be INR 1.2 lakhs for a salaried employee and INR 1.8 lakhs for a self-employed person.
  • Salaried personnel must have at least one year of work experience while self-employed individuals must have an experience of 5 years.

To find out more about home loan eligibility, you can check out SMFG Grihashakti’s home loan eligibility calculator online before applying for the loan.

Documents Required

The list of documents required includes:

  • Proof of identity: PAN card, Aadhaar card, Voter’s ID, or Passport.
  • Address proof: Ration card or electricity bill.
  • Income proof for Salaried Professionals:
    •  
    • Salary slips of the past 3 months.
    • Official banking statements for your account in the past 6 months.
    • Filled Form 16 under the Income Tax Department for proof of TDS for the past 2 years.
  • Income proof for Self-Employed Professionals:
    •  
    • ITR submissions of the past 2 years.
    • Official banking statements for your account in the past 6 months.
    • P&L statements as audited and authorised by a legally registered Chartered Accountant.
  • Property-related documents

How to Apply For an INR 5 Lakhs Home Loan?

It is easy to apply for an INR 5 lakhs home loan online through SMFG Grihashakti’s website. Click here and fill in the details as required. Once submitted, you can upload your documents and get the sanctioned loan amount within a few days once your application is approved.

Conclusion

The EMI for an INR 5 lakhs home loan can be easily repaid if you plan your finances well and refrain from falling into a high-expense lifestyle. Become more mindful of your budget and aim to repay all your monthly instalments well within the deadline to avoid lowering your CIBIL score. With SMFG Grihashakti’s attractive interest rates, don’t hold back from investing in your dream house this festive season!

Disclaimer: *Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG Grihashakti. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG Grihashakti’s policy at the time of loan application. If you wish to know more about our products and services, please contact us.

SMFG India Home Finance Co. Ltd. (Formerly Fullerton India Home Finance Co. Ltd.)
CIN number: U65922TN2010PLC076972
IRDAI COR No: CA0492

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