2 crore Home Loan EMI & Interest Rate

2 crore home loan EMIs generally tend to be on the higher side. However, loan tenure plays a crucial role in determining monthly loan repayments. In this article, we discuss the impact of loan tenures over EMIs for home loans of 2 crore. Several other factors influencing loan EMIs are also discussed in detail. Read ahead to find EMI estimates for 2 crore home loans for 5,10, 20 and 30 years.

2 Crore Home Loan – An Overview

A home loan worth ₹ 2 crore can help homebuyers get the property of their dreams. The 2 crore loan amount can be used to purchase, construct or invest in properties. Easy EMIs for a 2 crore home loan help settle the loan amount comfortably in as many as 30 years.

While applying for a home loan, borrowers must check the monthly instalments they’d need to pay to settle the amount. 2 crores is no small amount by any stretch of the imagination. Therefore, it becomes all the more important to take a look at its EMI demands to make a wise decision. Stay tuned with us as we discuss the 2 crore loan EMI schedules, the best hacks to minimise your EMI payments and much more.

Features and Benefits of 2 Crore Home Loan

Before we proceed to the monthly EMIs for a 2 Crore home loan, let us take a quick look at the advantages offered by such a high-value home loan.

• Buy the Best Homes: A loan amount worth ₹2 crores can help you get the most lavish of homes. Such an amount can get you premium housing options in posh localities and elite neighbourhoods.
• Finance up to 75% of the Property’s Value: As per the latest RBI home loan guidelines, lenders can offer a maximum financial cover of 75% on home loans worth ₹2 crore. 
• Affordable Interest Rates: In return for the mortgage of the concerned property, banks offer affordable interest rates on home loans. Although interest rate depends upon multiple factors, home loans usually begin with interest rates as low as 8.4% p.a.
• Comfortable Repayment:  Borrowers need not repay the entire amount in one go. Instead, 2 crore house loan EMIs can be paid at regular intervals for as long as 30 years to comfortably settle the loan. 
• Tax Benefits: The Income Tax Act of 1961 allows borrowers to claim tax benefits on home loans worth ₹2 crore. Exemptions of up to 1.5 lakhs on principal and ₹2 lakhs on interest repayments can be availed by home loan borrowers. 
• Growing Asset: Real estate is among the most lucrative investment sectors. Since the value of a property increases with time, you can either sell or lease the property to gain high returns in future. 

2 Crore Home Loan Eligibility Criteria

A home loan worth ₹2 crore is offered by lenders to 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: 3-4 lakhs
• Work Experience: 3-5 years
• Credit Score: 750 or higher
• Citizenship: Indian 

Documents Required for 2 crore Home Loan

An applicant must carry the following documents with them while applying for a home loan worth ₹2 crore.

• Loan Application Form.
• PAN Card.
• ID Proof– Aadhar Card/ Driving License/ Other documents.
• Address Proof- Utility Bills/Voter ID/ Other documents.
• Income Proof– Previous bank statements/ salary slips/ Form 16/ Other documents.
• Employment Proof- Certificates showcasing past as well as current employment.
• Property documents.
• Disclosure of the applicant’s existing assets and liabilities.
• Passport-size photographs.

Factors Affecting 2 Crore Home Loan EMI

EMIs for a 2 Crore Home Loan are determined by a number of factors. Let us take a look at all these factors individually.

• Loan Amount: The higher the loan amount, the higher will be the monthly repayment. Hence, a borrower should expect EMIs on 2 crore home loans to be on the higher side.
• Loan Tenure: Loan tenures significantly impact the EMI and interest payments over a home loan. An increase in loan tenure reduces the monthly 2 crore house loan EMIs but increases the overall interest payments. A decrease in tenure has the opposite effect.
• Interest Rates: The higher the interest rate, the higher will be the EMI. Borrowers should compare all the home loan offers available in the market and choose the offer with the most affordable rate of interest. 
• Type of Interest Rate: Home loans are available in fixed and floating rates of interest. While fixed rates remain stable throughout the loan tenure, floating rates are revised periodically by the bank. Fixed-rate home loans are usually priced higher than floating-rate loans.
• Credit Score: Banks prefer extending home loans of such high amounts to candidates with high credit scores. A credit score of 750 or more is considered excellent for home loan applications. 

2 Crore Home Loan Processing Fees & Other Charges

Lenders impose several additional charges over the applicable interest rate on a home loan. While they do not directly impact the 2 crore loan EMIs, one must be aware of them.

2 Crore Loan EMIs from 5 – 30 Years 

As discussed previously, loan tenures have a strong impact on EMI for 2 crore home loans. The following table highlights how a change in loan tenure alone can impact the monthly repayments.

Let us assume that a 2 crore home loan is sanctioned at an interest rate of 10% p.a. The following table lists the 2 crore loan EMIs for a time period ranging from 5 to 30 years.

Things to Remember While Taking a 2 Crore Home Loan

As we conclude this article, here are some practical tips to help you get the best home loan offer.

• Apply for a 2 crore home loan only through a reputed lender.
• Keep all the necessary documents handy while applying for the loan. Discrepancies in documents are among the main reasons for delays in approvals. 
• Choose a loan offer that results in low 2 crore home loan EMIs to minimise financial strain. 
• Submit joint loan applications for quicker approvals. 
• Borrowers seeking a loan for construction purposes can also apply for pre-EMIs. 
• Go through the additional fees and charges applicable to the loan.
• Last but not least, sign the loan agreement after properly reading all the terms and conditions. 

Tips to Minimise Your EMI for 2 Crore Home Loan

Now that you know how different factors affect EMIs for 2 Crore home loans, following these simple tips can help you minimise your monthly loan repayments.

• Compare Loan Offers: While looking for a suitable home loan, do not jump on to the very first offer you get. Instead, compare that offer with other lenders. Finally, choose a loan option that suits your financial situation. 
• Improve Credit Scores: Banks offer advantages like EMI assistance and concessions to highly rated borrowers. Applicants can improve their credit scores over time by ensuring appropriate financial behaviour. 
• Negotiate: Negotiating with your existing bank can be beneficial. You can leverage your existing relationship and cite other lenders offering better deals to make your bank budge. This can significantly lower your EMI for a 2 crore home loan. 
• Opt for Longer Tenures: Borrowers should choose loan tenures between 15-20 years instead of opting for the full 30-year tenure to make a balanced choice. This will help maintain low EMIs while also keeping the overall interest payments in control.
• Use EMI Calculator: Among all the offers available to you, go for the one which results in lower EMIS. Urban Money’s advanced EMI calculation calculator provides near-accurate EMI estimates in an instant.