1 Crore Home Loan EMI & Interest Rate

Banks allow borrowers to repay their home loans comfortably using Equated Monthly Instalments (EMIs). 1 crore home loan EMI refers to periodic payments made by a borrower with the aim of settling a home loan worth ₹1 crore. We are collectively witnessing a boom in real estate demand and a surge in property prices. In such times, home loans offer ready financial assistance in purchasing your dream house.

A home loan worth 1 crore is a substantial amount. It can sanction the most lavish and extravagant of accommodations. Apart from that, the loan amount can be used for renovation, improvement and investment purposes as well. 1 crore loan EMIs depend upon a number of factors. In this article, we discuss and simplify all the key aspects of EMIs for 1 crore home loan borrowers. 

Features and Benefits of 1 Crore Home Loan

Let’s begin by taking a look at the value offered by a 1 crore home loan. Here are the loan’s top features and benefits.

• The Joy of Home Ownership: Home ownership brings with it safety, privacy and freedom. The sole aim of a home loan is to help the borrower own the house of their choice. Owning a home eliminates the hassles of rent and leases. 
• Ready Financial Assistance: Gone are the days when getting a home loan was a complex task. Today, after due verification, banks offer quick home loan approvals, extending financial help to borrowers even in the most desperate of situations.
• Upto 75% Loan-to-Value (LTV) Ratio: A home loan worth ₹1 crore can cover upto 75% of the property values. The LTV ratio works as per the RBI’s home loan guidelines. 
• Comfortable Repayment: EMI for a 1 crore home loan can be conveniently paid for as long as 30 years. Lenders are aware that 1 crore is a sumptuous amount. Therefore, adequate time is offered to a borrower to reduce the strain of loan settlement. 
• Lower Rate of Interest: Banks offer affordable interest rates on home loans as their risks are adequately secured against the mortgage. Lower interest rates further imply affordable 1 crore loan EMIs. Home loans are offered at interest rates as low as 8.4-8.5% p.a. 
• Appreciating Asset: Real estate is one of the most lucrative investments out there. The new property can be put up for rent or sold at higher values at the appropriate time. Thus, helping in income and wealth generation. 
• Tax Advantages: Home loan borrowers are allowed to claim additional tax benefits by the Income Tax Act of 1961. Upto ₹1.5 lakh and ₹2 lakh can be claimed on home loan principal and interest repayments respectively.

Eligibility Criteria for 1 Crore Home Loan

The eligibility criteria for a home loan worth ₹1 crore are mentioned below. 1 crore home loan EMIs are to be paid only by applicants satisfying the following criteria.

• Eligible Candidates: Self-employed and Salaried individuals 
• Age: A minimum of 21 years while applying and a maximum of 60 years at the time of maturity. 
• Minimum Monthly Income: ₹1-1.5 lakh 
• Work Experience: 2-3 years
• Credit Score: 750 or higher
• Citizenship: Indian 

Documents Required for 1 Crore Home Loan

Check out the full list of documents required by banks and NBFCs while applying for home loans.

• KYC Documents- Aadhar card, PAN card, utility bills, voter’s ID and other documents.
• Income Related Documents- Bank statements, salary slips, Form 16, Balance sheet and PnL statement and other documents.
• Property Related Documents- Agreements, title deeds, encumbrance certificates etc.

Factors Affecting 1 Crore Home Loan EMI

1 crore loan EMIs depend on the loan’s terms and conditions. Let’s individually look at these factors and their impact on home loan EMIs.

• Loan Amount: Monthly repayments of ₹1 crore home loans are naturally going to be on the higher side. One must always note that the higher the loan amounts, the higher will be the monthly EMIs. 
• Interest Rate: The higher the interest rate, the higher will be the EMI for a 1 crore home loan.  The interest rate ascertains repayments to be made towards the interest portion of a home loan.
• Loan Period: Loan tenures have a rather interesting impact on home loan EMIs. Higher tenures lead to lesser monthly EMIs but greater interest payments. Similarly, shorter tenures may result in hefty monthly EMIs but lesser overall interest payments.
• Credit Score: The credit score of an applicant is reflective of their financial behaviour. Applicants with high credit scores are provided concessions and personal assistance in ₹1 crore house loan EMIs.
• EMI Calculation: Different lenders may calculate home loan EMIs differently. As a general rule, borrowers should look for home loans where EMI is calculated on the basis of the reducing balance method. 

Processing Fees & Other Charges for 1 Crore Home Loan 

Apart from interest charges, banks and NBFCs levy additional fees on home loans. Some of the prominent fees and charges are listed below:

1 Crore Home Loan EMI Estimates from 5-30 years 

Loan tenures substantially influence home loan EMIs. Any change in tenure significantly alters the monthly repayments. Referring to the table below, you will observe that 1 crore loan EMI decreases as the loan tenure increases.

To simplify the calculations, let us assume an interest rate of 8.40% p.a. on a ₹1 crore home loan. The following table specifies the changes in EMI payments resulting from changing loan tenures, ranging from 5-30 years.

1 Crore Home Loan EMI for 5 Years

1 Crore Home Loan EMI for 10 Years

1 Crore Home Loan EMI for 15 Years

1 Crore Home Loan EMI for 20 Years

1 Crore Home Loan EMI for 25 Years

1 Crore Home Loan EMI for 30 Years

Tips to Minimise Your 1 Crore Home Loan EMI

Smart borrowing decisions can help minimise home loan EMIs. Although monthly instalments depend upon a number of factors, the following tips can help you get the lowest ₹1 crore loan EMIs on your next home loan.

• Make Higher Down Payments: A down payment refers to the borrower’s portion of payment towards the property. Higher down payments minimise risk for lenders. As a result, they are willing to offer loan amounts at better rates of interest, leading to easy EMIs.
  
• Compare Interest Rates: The home loan market is highly competitive. A borrower must compare the home loan interest rates offered by all the lenders available in the market. After due research, a borrower can either apply at the most suitable bank or use their research to negotiate a better deal from their existing bank.
  
• Choose Longer Tenures: Longer loan tenures result in affordable EMIs for ₹1 crore home loans. However, one must be careful as longer tenures also result in overall higher interest payments on a home loan.
  
• Use EMI calculator: Urban Money provides a free home loan EMI calculator that offers detailed amortisation results. A ₹1 crore EMI calculator allows one to borrow wisely, resulting in affordable EMI obligations.
  
• Improve Your Credit Score: Highly rated applicants get special EMI offers. One can improve their credit score over time by making timely repayments on existing debts and displaying appropriate financial behaviour.

Points to Remember While Taking 1 Crore Home Loan

As a roundup to the article, here are some simple but practical things every borrower should keep in mind.

• Apply for reasonable loan amounts to increase your chances of approval.
• Always borrow a home loan from a credible lender.
• Prepaying or transferring your home loan can also help ease out the ₹1 crore loan EMI burden.
• Authentic and up-to-date property documents should be submitted to the bank.
• Beware of additional fees and charges levied by the lender on your home loan.
• Carefully read the loan agreement before signing it.