If you are planning to buy a new home in India, you may need to take out a home loan to finance your purchase. One of the most important factors to consider when taking out a home loan is the Equated Monthly Installment (EMI) that you will need to pay each month. This loan repayment system can keep you away from financial burdens and worrisome schedules. Moreover, a home loan can ensure that you make your housing decisions without any restrictions. In this article, we will discuss the INR 7 lakh home loan EMI calculator and its calculation.

INR 7 Lakhs Home Loan EMI Details

The EMI for a home loan depends on three factors: the loan amount, the interest rate, and the loan tenure. The home loan EMI can be easily calculated using the SMFG Grihashakti calculator that can help you calculate the EMI for a 7 lakhs home loan. The calculator can take into consideration different factors and allow you to calculate the EMI for a home loan of 7 lakhs.

For example, if you take out a home loan of INR 7 lakhs at an interest rate of 7% for a tenure of 20 years, the EMI would be around INR 5,557. However, for a INR 7 lac home loan EMI for years would be much higher as repayment has to be made in 1/4th the time. Similarly, the INR 7 lakh home loan EMI for 5 years would be INR 13,861.

The different factors like tenure and interest rate would impact the calculation of the 7 lac home loan EMI.

The formula is as follows:

The alphabets are as below:

E is your EMI of home loan for 7 lakh,

P is INR 7,00,000,

r is the monthly rate of interest,

n is your tenure in months.

Factors That Affect EMI

Apart from the loan amount, interest rate, and loan tenure, there are several other factors that can affect the EMI for a home loan. These include:

• Down payment: The down payment is the amount of money that you pay upfront when you buy a home. A higher down payment can reduce the loan amount, which in turn can lower the EMI.
• Prepayment: Prepayment is the option to repay the loan amount before the end of the loan tenure. Some lenders charge a prepayment penalty, while others do not. If you plan to prepay your home loan, it is important to choose a lender that does not charge a prepayment penalty.
• Processing fee: Lenders may charge a processing fee when you apply for a home loan. This fee can range from 0.5% to 1% of the loan amount and can increase the total cost of the loan.
• Credit score: Your credit score is a measure of your creditworthiness. A higher credit score can help you get a lower interest rate, which in turn can lower the EMI for your home loan.

Eligibility And Documents Required

The eligibility for a home loan in India can vary from lender to lender, although the following elements are commonly considered:

• At the time of loan application, the borrower must be at least 21 years old, and the loan must be returned by the time the borrower reaches 65 years of age, depending on the lender's policy.
• The borrower must have a stable source of income, be it from a salaried position or through self-employment.
• The borrower's credit score is a significant determinant of their eligibility for a house loan. An excellent credit score (usually greater than 700) reflects a history of responsible debt repayment and makes the borrower eligible for a lower interest rate.
• The purchased or developed property must meet the lender's standards and valuation criteria.

The paperwork commonly requested for are:

• Identity Proof: PAN card, Aadhaar card, passport, or voter ID card.
• Address Proof: Aadhaar card, passport, voter ID card, or utility bills (electricity, water, telephone).
• Income Proof: Salary slips, account statements, Income Tax returns (ITR), Form 16, or business financial statements for self-employed individuals.
• Property Documents: Sale deed, conveyance deed, agreement to sell, property tax receipts, and possession letter.

Note that the list of documents may change according to the lender's requirements, the type of property, and the borrower's profile. To know the entire list, click here.

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How To Apply For An INR 7 Lakhs Home Loan?

The loan application process these days is very smooth for loans with websites and applications of financial institutions allowing you to complete the process online. In the case of SMFG Grihashakti, the process is simple and completely online to the point of uploading your basic documents.

Conclusion

Housing is a very important part of India’s growth story and through a transparent process with no hidden charges and flexible tenure, SMFG Grihashakti can allow you to obtain an INR 7 lakh home loan EMI. Interest rates at SMFG Grihashakti starts from 9.50%* for salaried borrowers. With minimal processing fees and time, you can make the most of your INR 7 lakhs home loan through EMI.

Also Read: 8 lakh home loan emi