[Tmdl.edu.vn] This article will cover the documentation and qualifying requirements needed to get a Rs 5 lakh home loan, as well as the Rs 5 lakh home loan EMI for various loan terms.
The amount of your home loan establishes your monthly EMI. Once you begin making the monthly EMI payments, you must exercise severe financial discipline to handle the debt for its duration. Consequently, it is essential to have an understanding of the EMI for different timeframes. This article will cover the documentation and qualifying requirements needed to get a Rs 5 lakh home loan, as well as the Rs 5 lakh home loan EMI for various loan terms.
Rs 5 lakh home loan EMI for various tenures
| Tenure (in years) | Interest rate (%) | Monthly EMI (in Rs) |
| 30 | 7.55 | 3,513 |
| 25 | 7.55 | 3,711 |
| 20 | 7.55 | 4,043 |
| 15 | 7.55 | 4,649 |
| 10 | 7.55 | 5,948 |
| 5 | 7.55 | 10,031 |
Rs 5 lakh home loan EMI: Year-wise break-ups
Rs 5 lakh home loan EMI for 30 years
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| Loan Amount (in Rs) | Tenure (in years) | Interest (%) | EMI (in Rs) |
| 5 Lakh | 30 | 7.55 | 3,513 |
Rs 5 lakh home loan EMI for 20 years
| Loan Amount (in Rs) | Tenure (in years) | Interest (%) | EMI (in Rs) |
| 5 Lakh | 20 | 7.55 | 4,043 |
Rs 5 lakh home loan EMI for 15 years
| Loan Amount (in Rs) | Tenure (in years) | Interest (%) | EMI (in Rs) |
| 5 Lakh | 15 | 7.55 | 4,649 |
Rs 5 lakh home loan EMI for 10 years
| Loan Amount (in Rs) | Tenure (in years) | Interest (%) | EMI (in Rs) |
| 5 Lakh | 10 | 7.55 | 5,948 |
Rs 5 lakh home loan EMI for 5 years
| Loan Amount (in Rs) | Tenure (in years) | Interest (%) | EMI (in Rs) |
| 5 Lakh | 5 | 7.55 | 10,031 |
Rs 5 lakh home loan: Eligibility
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Applicant’s age
Lenders of Rs 5 lakh home loan will often give preference to candidates who have credit ratings of 750 or above. These candidates for home loans have a greater possibility of being approved for financing with more favourable interest rates. Therefore, it is important to review your credit report on a consistent basis.
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Income and employment
The lowest age to qualify for a Rs 5 lakh home loan is often set at 18 years old, while the utmost age at which a loan may be paid off is typically set at 70 years old. The length of time it takes to repay a Rs 5 lakh home loan may often range from 15 to 30 years, with the majority of lenders setting 65 as the upper age restriction for borrowers. As a result, younger borrowers applying for a Rs 5 lakh home loan have a better chance of being approved for lengthier loan terms.
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Repayment capacity
Home loans are often approved by banks and HFCs if the requested home loan’s EMIs won’t take up more than half of the applicant’s monthly income. Those with lesser house loan eligibility may increase it by selecting for lengthier loan duration since doing so would reduce the home loan EMI.
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Property
Lenders will evaluate the property’s location, condition, and construction details in addition to the property’s current and projected values to determine the maximum loan amount they will provide for the borrower. Under RBI’s rules, a home loan cannot surpass 90% of the property’s worth. It means that you will need a certain sum to put towards a down payment for a house. By putting down a larger sum of money up front, borrowers may qualify for a mortgage with a lower interest rate and a lower loan-to-value ratio.
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Income and employment
Salaried workers often qualify for lower interest rates on a Rs 5 lakh home loan because their income is more predictable. Individuals who are employed by the national or state government, a public sector organisation, a large, well-known company, or a multinational corporation (MNC) are more likely to be approved for a Rs 5 lakh home loan at a competitive interest rate. Many mortgage companies need borrowers to have worked for the company for a minimum of two years before they would consider giving them a loan for a house. People who are self-employed need to have been in operation for at least three years.
Rs 5 lakh home loan: Documents required
- Duly filled application forms with attached photographs
- Documentation of id, address, and age such as
- PAN Card,
- Passport
- Electricity Bill
- Telephone Bill etc
- Bank statements over the last 6-12 months
- Paycheck slips over the last three to six months
- Check for the processing fee
- The Income Tax Return, Form 16
- Proof of Company Existence
- Credentials from an accredited institution and evidence of a functioning company (for salaried employees)
- Estimation of Income from the Past Three Years of Tax Returns (for self-employed)
- Balance Sheet and Profit and Loss Statement Audited and Certified by a CA for the Past Three Years
How to get a Rs 5 lakh home loan?
- One shouldn’t spend more than forty per cent of their monthly wage on interest and principal payments on a property loan. Be careful that you follow the cut-off at all times.
- Keep all of the necessary papers handy to ensure speedy approval of your application for a Rs 5 lakh home loan.
- Work on improving your credit score if it isn’t very high. The only certain way to get the most favourable interest rate is to have a strong credit score.
Factors influencing Rs 5 lakh home loan EMI
When you take out a Rs 5 lakh home loan, your monthly instalment is determined by a number of variables, some of which might have a major impact.
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Tenure
Choosing a longer term reduces your monthly payment amount, but it also raises your interest expense. Shortening your loan’s term helps you pay off your debt faster, but it also raises your monthly instalment amount (EMI). Choose your payback term carefully to prevent unintended ease.
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Prepayment
When you prepay a house loan, you start repaying an agreed-upon amount of the principal before the loan’s term expires. In this approach, the principal on your loan will decrease rapidly, which will lower your EMI. Several reputable lenders provide this option to assist customers to reduce their EMI obligations; nevertheless, this service does not come without extra costs. Be aware of any hidden fees before making a final selection.
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Rate Of Interest
A loan’s interest rate can help you determine the amount you are able to afford to borrow. As interest rates rise, the corresponding monthly payment does the same. Secured loans from lenders tend to come with low-interest rates, although shopping around is still recommended.
FAQs
When applying for a Rs 5 lakh home loan, what forms of identification and what proof of ownership must you present?
The original selling deed, ownership letter, etc. are required in order to get a home loan. On top of that, you’ll need to provide documentation of your own, such as an official photo ID, a pay stub, and a current address.
When do I not need to provide proof of ownership in order to get a Rs 5 lakh home loan?
You may get a Rs 5 lakh home loan even if you don’t have the official registration paperwork yet as long as the facility is still in the process of being constructed. However, after the building is finished, you’ll need to get a finalisation and registration certificate. Having an established history with your preferred lender is another way to shorten the paperwork process.
When applying for a Rs 5 lakh home loan, what do you gain by having a co-applicant?
The main advantage of having a co-applicant is that it allows the lender to take into account both borrowers’ income and credit history. Because of this, there is a better probability of getting a loan. The conditions of home loans become more favourable the more creditworthy a person is.
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