30 Lakh Home Loan EMI & Interest Rate

A 30 lakh home loan can help you buy your next property. The loan amount can be comfortably used for residential, construction and investment purposes. Easy 30 lakh home loan EMIs help borrowers comfortably settle their loans in as many as 30 years.

Before applying for any loan, borrowers must check their EMI obligations in advance to ascertain whether they can really afford the loan or not. 30 lakh loan EMIs depend on a number of factors. Loan tenure is among the most important ones. In this article, we discuss how changing the loan tenure can change the monthly repayments over a 30 lakh home loan. Keep reading as we explain all the details in a simple and easy fashion.

Features and Benefits of 30 Lakh Home Loan

A home loan of ₹30 lakhs offers several benefits. Let us take a look at some of its highlighting features.

• Finance up to 90% of Your Property: As per RBI’s latest home loan guidelines, banks can offer a loan-to-value (LTV) ratio of up to 90% on a 30 lakh home loan.
• Down Payment: A borrower’s share in financing a property using the loan ranges from 10%-25%, depending upon the LTV offered by the lender.
• Long Tenures: Home loans are offered by lenders for up to 30 years in India. However, different loan terms are extended to different borrowers based on their credibility.
• Comfortable Settlement: The loan amount is neither too big nor too small. Therefore, it’ll be easier to borrow and more comfortable to settle. Home loans worth ₹30 lakh can be repaid using 30 lakh home loan EMIs.
• Customer-Friendly Interest Rates: Home loans are secured by mortgaging the concerned property. In return, banks offer lower rates of interest, starting generally from 8.4%-8.5% p.a.
• Lucrative Investment: Real estate is a lucrative business. Investments typically result in high returns. Borrowers can ensure future gains by selling or leasing the property obtained with the help of such a loan.
• Tax Exemptions: Home loan borrowers are guaranteed tax benefits on their loan repayments by the Income Tax Act of 1962.

Eligibility Criteria for a Home Loan of ₹30 lakh

These loans are offered by lenders to the following candidates:

• Eligible Applicants: Salaried/ Self-Employed Individuals
• Age: Minimum 21 years at the time of applying and maximum 60 years at the time of maturity.
• Minimum Monthly Income: 50,000-60,000 per month.
• Work Experience: 2-3 years
• Credit Score: 750 or more
• Citizenship: Indian

Documents Required for 30 Lakh Home Loan

Individuals willing to apply for the loan must carry the following documents with them while submitting their application.

• Properly filled loan application form
• PAN Card
• Identity Proof: Aadhar card/ Driver’s license/ Other documents
• Address Proof: Utility bills/ Aadhar card/ Other documents 
• Income Statements – Bank statements/ Tax filings 
• Employment Proof- Employee ID/ Joining letter
• Property related documents
• Disclosure of existing assets and ongoing debts
• Passport size photos

Factors Affecting 30 Lakh Home Loan EMI

30 lakh loan EMIs fluctuate in response to changes in the multitude of factors that affect it.

• Loan Tenure: The longer the tenure, the smaller the monthly instalment. However, one must also keep in mind that a longer term will also result in a higher overall interest payment towards the loan. A Home loan EMI calculator is useful for understanding how different tenures affect your EMI.
• Loan Amount: 30 lakhs is a relatively manageable amount. Thus, a borrower can expect affordable monthly instalments.
• Interest Rate: The higher the interest rate, the higher will be the 30 lakh loan EMI. Therefore, a borrower must look for as low an interest rate as available without compromising on any T&Cs.
• Type of Interest Rate: Lenders offer home loans at fixed and variable rates of interest. These rates significantly influence EMIs over 30 lakh home loans. Fixed rates are generally priced higher than variable rates of interest.
  Credit Score: Highly rated borrowers can gain the loan at special offers and discounts. This can make loan repayment more comfortable by providing EMI assistance.

30 Lakh Home Loan Processing Fees & Other Charges

Certain additional charges apart from interest rates are also levied by banks on the loan. Take a look at some of these charges below:

• Processing Fee: Banks charge a processing fee of 0.25-2% for recovering their administrative costs.
• GST: Lenders levy a GST of 18% on banking services, as mandated by the government.
• Memorandum of Deposit (MoD) Fees: An MoD fee of 0.1-0.5% of the loan amount is charged by lenders for legally transferring the property’s ownership.
• Prepayment Charges: Home loan prepayments, in part or full, are subject to certain minimal prepayment charges.
• Verification Charges: These charges help lenders cover costs incurred on professional verification of the concerned property.

30 Lakh Home Loan EMIs from 5-30 Years

Loan tenures and loan EMIs are closely interrelated. For our convenience, let us assume an interest rate of 10% p.a. on a loan amount of ₹30 lakhs. Check out how a change in the loan tenure from 5 years to 30 years impacts the EMIs for 30 lakh home loans.

30 Lakh Home Loan EMI for 5 Years

30 Lakh Home Loan EMI for 10 Years

30 Lakh Home Loan EMI for 15 Years

30 Lakh Home Loan EMI for 20 Years

30 Lakh Home Loan EMI for 25 Years

30 Lakh Home Loan EMI for 30 Years

Things to Remember While Taking 30 Lakh Home Loan

Smart borrowing decisions are the first step towards higher savings. A home loan is a debt at the end of the day. Follow these simple tips to make sure that the ball is always in your court.

• Always Approach a Credible Lender: Lenders who’ve established their reputation in the market are more likely to offer security to a borrower. One can search the top-rated banks in their city or consult their peers who’ve previously taken home loans.
• Don’t Say Yes to The First Offer: Most borrowers settle for the very first offer they are presented with. Borrowers taking a loan from their existing bank should negotiate with them to get a suitable deal. Those open to new lenders must compare all the loan options available in the market. 
• Read the Loan Agreement: A borrower should always sign a loan agreement after duly reading the terms and conditions. It is one of the most important and simple financial practices.

Tips to Minimise Your 30 Lakh Home Loan EMI

As we wrap this piece, here are some quick tips to get the lowest 30 lakh housing loan EMIs.

• Maintain a credit score of 750 or more. 
• Select a loan offer with affordable rates of interest.
• Transfer existing home loans to new lenders and get affordable interest rates, leading to lower EMIs.
• Opt for longer tenures. Keep in mind that while resulting in low monthly instalments, it will also lead to higher overall interest outflows.