# What will be the 25 lakh home loan EMI in 2022 and what is the interest rate?

If you are planning to take a loan of Rs 25 lakh for the purchase, construction or repair of a house, the good news is that there are many banks that you can choose at your discretion. However, before you take a home loan, you should know how much EMI you may have to pay on a home loan of 25 lakhs every month.

Here you are given all the details you need to choose the bank that will best suit you for taking up a house or property.

# Complete Details of 25 Lakh Home Loan EMI

The important factor affecting the loan repayment EMI is the tenure of the loan. The EMI of 25 lakh home loan for 10 years is quite different from the home loan tenure of 30 years.

Before we talk about the EMI details, let us first understand how 25 lakh home loan EMI is calculated.

EMI is the monthly installment to be charged. This is the repayment that you have to pay every month for your loan. Every bank uses a standard formula to calculate EMI, which is **E = [P x R x (1+R)^N]/[(1+R)^N-1]** . Here P is the loan amount, R is the interest rate and N is the tenure of the loan.

You can also calculate EMI using the excel sheet with the given formula. Simply click on the ‘=’ sign and enter the formula (interest rate, tenor and loan amount). After that click on enter button. Then, you can add up to three variables as you wish:

**Monthly interest –**If your interest rate is 12% p.a., write the monthly interest rate as 1%.**Loan Tenure –**This value should be written in monthly. So, if it’s 20 years, you’d enter 240 months.**Loan Amount –**The total amount received as loan is to be entered.

You can skip these complicated calculations completely and use 25 Lakh Home Loan EMI Calculator. This is a loan calculator available on all banking websites and finance related websites. All you have to do is to enter the parameters, i.e. tenure, interest rate and loan amount.

The calculator will apply the EMI formula and give you accurate results. You can calculate 25 lakh EMI for 10 years or any other tenure in a matter of seconds.

Calculating your EMI will help you understand whether there is a particular loan scheme that is more suitable for you. You can plan according to your monthly budget and modify parameters like loan amount and tenor to reduce EMI as per your convenience and affordability.

# What is the interest rate of 25 lakh home loan?

When you are calculating the EMI for a loan of Rs 25 lakh, the most important factor is the interest rate offered by the lender. Each lender offers different interest rates based on its internal policies.

**Primarily, two types of interest rates are applicable while calculating 25 lakh home loan EMI:-**

**Fixed interest rates:**These interest rates remain the same from the beginning to the end of the tenure as they are not affected by the lending rates of the market.**Floating interest rate:**Floating interest rate is linked to the lending rates of the market. So, with any increase or decrease in the market rate, the interest rate also changes.

No matter which type of interest rate you choose, there are several factors that determine the final rate of interest offered to the customer:

**CIBIL Score:** This is the most important factor that determines the 25 lakh home loan EMI. CIBIL score, also known as credit score, reflects the financial status of an individual. If they have made regular payments for any existing credit and have good financial standing, then the CIBIL score is good. In this case, the individual is considered a good candidate for a home loan. Hence, he also gets a loan at a lower interest rate.

**Loan to Value Ratio:** The loan to value ratio is calculated as per the market value of the property. If the property is in a good location which can be easily sold later, the margin to be paid by the applicant is reduced. Since the property is taken as a security against the loan, a high loan-to-value ratio often attracts a lower interest rate.

**Income:** When the repayment capacity of the person is high, the interest rate goes down. So when a person’s income is high, he is eligible for a lower rate of interest. If you are looking to apply for a home loan, it is a good idea to show multiple sources of income to lower your repayment EMI. You can also apply for a joint loan where the income of the co-applicant is taken into account.

**Age of the customer:** Home loans are long term loans. Therefore, the age of the customer is a very important criterion. Most preferred by young candidates as they can get the full home loan tenure, allowing them to enjoy a low 25 lakh home loan EMI for 10 years or more. Hence, they are also offered low interest rates.

# Best banks to offer 25 lakh home loan

You can use the 25 Lakh Home Loan EMI Calculator from different banks to compare the final repayment amount.

Here is a list of good banks that offer home loans up to Rs 25 lakh and the interest rates they offer:-

Name of bank | rate of interest |

Indian Bank | more than 7.55% |

Kotak Mahindra Bank | more than 6.65% |

Punjab And Sind Bank | 6.66% |

LIC Housing Finance | 6.66% |

state Bank of India | 6.75% |

HDFC bank | 6.75% |

ICICI Bank | 6.75% |

Bank Of Baroda | 6.75% |

Punjab National Bank | 6.75% |

# What will be the EMI of 25 lakh home loan for 30 years?

Let us calculate 25 lakh home loan EMI for 30 years at an interest rate of 6.80% which is offered by most of the bank :-

total loan amount | Monthly EMI | total interest to be paid | Total Amount Paid |

25 lakh rupees | Rs 16298.13 | Rs 33,67,327 | Rs 58,67,327 |

# What will be the EMI of 25 lakh home loan for 25 years?

Let us reduce the tenure by 5 years to see how EMI is affected by the tenure.

total loan amount | Monthly EMI | total interest to be paid | Total Amount Paid |

25 lakh rupees | Rs 17352 | Rs 27,05,540 | Rs 52,05,540 |

# What will be the EMI of 25 lakh home loan for 20 years?

You can check EMI on loan by using 25 Lakh Home Loan EMI Calculator.

total loan amount | Monthly Installment/EMI | total interest paid | total amount paid |

25 lakh rupees | 19083 rupees | Rs 20,80,037 | Rs 45,80, 037 |

# Eligibility Criteria for Home Loan of Rs.25 Lakh

The eligibility criteria for availing a loan of Rs.25 lakh are as follows:-

- Must be a citizen of India
- Applicant’s age should be at least 18 years.
- The maximum age varies according to the bank, with the maximum age being 65 years in most of the cases.
- He must have a stable source of income in the form of employment or business.
- They should meet the minimum income requirement as per the chosen bank.

# Documents Required for Home Loan of Rs.25 Lakh

The required documents are as follows:-

- KYC documents like PAN card or Aadhar card
- Salary slip or Form 16 for the last 3 months in case of salaried individuals
- Profit and loss statement or tax return document for self-employed individuals.
- Bank account details of last 6 months.

# Home Loan FAQs

## Question: Should I extend the loan tenure to lower the monthly EMI on the home loan?

**Answer:** You can choose to extend the tenure of your loan to lower the EMI. However, you should note that you will pay a higher amount for interest. So, be sure to take advice on negotiating the interest rate and ensuring the shortest possible tenure, if possible.

## Q: How to use EMI calculator?

**Answer:** You have to enter the interest rate, tenure and loan amount to set these parameters. Then click on ‘Calculate’ to get the exact details of your loan.

## Question: Do I have to pay margin for home loan of 25 lakhs?

**Answer:** In most of the cases, the borrower has to pay a minimum margin of 10%. It depends on the loan to value ratio given by the bank from which you have taken your loan.

## Question: Does home loan offer any tax benefits?

**Answer:** Any payment made towards home loan is eligible for tax deduction as per the Income Tax Act of 1961. You can get deduction on both the interest and the principal amount, depending on the type of asset and the value of the property.

## Question: What is the CIBIL score required for home loan of Rs 25 lakh?

**Answer:** Most banks ask for a minimum CIBIL score of 650-700 for an individual to be eligible for a home loan of Rs 25 lakh.