4 Crore Home Loan EMI & Interest Rate

Nowadays, obtaining a home loan can be straightforward as numerous lenders are vying for the necessary funds. Even for a substantial amount like 4 crore rupees, the eligible applicant can expect the funds to be disbursed within 3 to 4 weeks. However, finding a lender with lower interest rates and favourable terms remains challenging. Urban Money presents a detailed overview of 4 crore home loans to make your homeownership journey less difficult. We primarily cover details such as the typical 4 Crore loan EMI, relevant eligibility criteria, required documents, and nearly everything you need to know about this remarkable credit option.

Features and Benefits of 4 Crore Home Loan

Following are some of the major features and benefits of a 4 Crore home loan:

• Borrow up to 90% of the property value
• Flexible repayment tenure of up to 30 years.
• Interest rates starting from 8.45% p.a.
• It is feasible to prepay or foreclose your home loan.
• Tax benefits are available under Sections 24 and 80C.

4 Crore Home Loan Eligibility Criteria

The following are the applicable eligibility criteria regards a 4 Crore home loan EMI:

• The applicant must be between 21 and 60 years old.
• The applicant must be either a salaried or self-employed individual.
• The applicant must have a regular and stable source of income to cover the loan EMIs.
• Applicants must have at least 2 years’ work experience if salaried, and 3 years of ongoing business for self-employed individuals.
• The applicant must have a better credit score, typically 700 or above, considered ideal.
• The applicant must be an Indian citizen, including NRIs.

Factors Affecting 4 Crore Home Loan EMI

Let’s examine the applicable factors affecting the 4 Crore loan EMI:

Loan Amount

Your EMI will increase as the loan amount increases, assuming the loan tenure and interest rate remain constant. For instance, borrowing 4 Crore at an interest rate of 8.45% for a duration of 20 years will lead to an EMI of ₹345,865. However, if you borrow 5 Crore under the same conditions, your EMI will rise to ₹432,331.

Interest Rate

As the interest rate increases, so does your EMI and the total interest you pay over the loan’s lifetime. For instance, borrowing 4 Crore at an interest rate of 8.45% for 20 years would result in an EMI of ₹345,865, with the total interest amounting to ₹430,07,600. However, if you were to borrow the same amount at a 9.45% interest rate, your EMI would increase to ₹371,547, and the total interest paid would rise to ₹491,71,280.

Loan Tenure

As you extend your loan tenure, your EMI decreases, but the total interest you pay increases. For instance, if you borrow 4 Crore at an 8.45% interest rate for 20 years, your monthly payment will be ₹345,865, with a total interest cost of ₹430,07,600. However, if you opt for the same loan amount over a 30-year term, your EMI will drop to ₹306,149, but your total interest will soar to ₹702,13,640.

Documents Required for 4 Crore Home Loan

The following are the typical documents you may required to submit regards the 4 Crore home loan EMI:

• Your identity proof includes a PAN card, Aadhaar card, passport, driver’s license, or voter ID.
• Your address proof includes an Aadhaar card, passport, driver’s license, voter ID, or utility bills.
• Your income proof includes salary slips, bank statements, Form-16, IT returns, GST returns, etc.
• Your property proof includes Title deeds, allotment letters, agreement to sell, receipts of payments, etc.

4 Crore Home Loan Processing Fees & Other Charges

Here are the expected fees and charges of ₹85 lakh home loan:

• Processing Fee: This is a one-time charge the lender applies to process your home loan application. Typically, it’s a percentage of the loan amount and can vary between 0.50% and 3%, in addition to GST.
• Foreclosure Fee: The lender charges this fee as a penalty for repaying your entire loan amount before the term ends. In a home loan, you may have to pay 2-5% of the outstanding loan amount as foreclosure fees.
• Conversion Fee: This fee is imposed by the lender for switching between types of interest rates, such as moving from MCLR (Marginal Cost of funds-based Lending Rate) to a repo rate or from a fixed interest rate to a floating one or else.
• Miscellaneous Charges: The lender charges these fees for various services or events related to your home loan, such as inspection, valuation, legal assistance, documentation, stamp duty, CERSAI registration, income tax return verification, etc.

4 Crore Home Loan EMI Calculator

Let’s take a look at the expected 4 Crore loan EMIs in different tenures:

Important Key Points to Consider While Taking a 4 Crore Home Loan

Some important key points to consider while committing a 4 Crore loan EMI are:

• Your Finances: Have a comprehensive understanding of your income, expenses, assets, liabilities, and repayment capacity.
• Your Eligibility: Ensure you meet the lender’s eligibility criteria, including age, income, work experience, and business continuity (if applicable).
• Your Options: Explore and compare different lenders and their schemes, looking for those that offer appealing features and benefits to home loan borrowers.
• Your Subsidies and Incentives: Take advantage of various government schemes offering subsidies and incentives for home loan borrowers, like the Pradhan Mantri Awas Yojana (PMAY) and the Credit Linked Subsidy Scheme (CLSS).
• Your Tax Benefits: Avail of the tax-saving opportunities on both the interest and principal amounts of your home loan under Section 24 and Section 80C of the Income Tax Act, respectively.

Tips to Minimise Your 4 Crore Home Loan EMI

Some viable tips to minimise your 4 Crore Home Loan EMI are:

• Opt for a higher down payment: A larger upfront payment can reduce the loan amount and the EMI.
• Choose a shorter loan tenure: A shorter tenure increases the EMI but decreases the total interest cost.
• Negotiate for a lower interest rate: A lower interest rate reduces both the EMI and the total interest cost.
• Make regular or partial prepayments: Whenever you have surplus funds, making extra payments on your home loan lowers the principal, interest cost, and loan tenure.