A Home Loan is a financial assistance offered by various lenders in India. It boosts your budget when buying a home. You can conveniently avail yourself of this Loan for a specific tenure by meeting certain eligibility requirements of your preferred lender.
However, you need to return the Loan over the tenure along with interest using equated monthly instalments. Determining the exact estimate of the EMI amount is usually an important responsibility of a potential borrower. Let us determine the EMI amount for a Home Loan of Rs. 25 lakh. Here are also the factors affecting EMI and how the EMI amount can change during the tenure of your Home Loan.
How to calculate EMIs?
Suppose you want to apply for a Home Loan of Rs. 25 lakh and are wondering what is the EMI for a 25 lakhs Home Loan?, then you can conveniently utilise an online EMI calculator to estimate your EMI amount. For this, follow these basic steps:
- Enter the Loan amount into the calculator. Here, enter your Loan amount as Rs. 25 lakh.
- Enter the interest rate. Suppose the interest rate is 8.99% per annum. In that case, enter this value.
- You also need to input your preferred tenure. Lenders typically offer flexibility, and you can choose a tenure ranging between five and 30 years. Suppose you select five years. Then, enter the Loan tenure as five years in the calculator. Since there is no limit on the number of times you can use this calculator, you can determine the EMI for multiple tenures before deciding.
Once you enter the required details correctly, the calculator offers an estimate of the EMI amount within seconds. In this case, for a Loan amount of Rs. 25 lakh, an interest rate of 8.99% p.a., and a tenure of five years, the estimated monthly EMI is approximately Rs. 51,884. This is only an estimate. You also need to consider any additional charges applicable per the Loan terms.
Factors that affect EMIs
Now that you know what will be the EMI for a 25 lakhs Home Loan, you need to know the various factors that influence the EMI amount:
- The amount you borrow.
- The Loan tenure.
- The interest rates.
Can the EMI change during the Loan tenure?
While the EMI does not change under normal circumstances during your Loan tenure, it could change due to the following reasons:
- If you prepay a specific portion of the Loan amount.
- If you opt for a floating interest rates.
Conclusion
Now that you know how to use a Home Loan EMI calculator, you can calculate the repayment amount for a Rs. 25 lakh Loan.
