5 Crore Home Loan EMI & Interest Rate

Buying a home is a dream for many people, but it also comes with a huge financial commitment. When applying for a home loan, one of the most important factors to consider is the equated monthly instalment (EMI) you must pay back to the lender. This EMI is influenced by various factors such as the loan amount, interest rate, loan tenure, and the type of loan. This guide will focus on "5 Crore home loan EMI" and explore the important considerations when taking such a large loan. Let's scroll down to learn more.

Features and Benefits of 5 Crore Home Loan

Following are the pertinent features and benefits of a 5 Cr home loan EMI:

• Higher loan amount 
• Longer loan tenure 
• Competitive interest rate
• Flexible repayment option
• Applicable to tax benefits

5 Crore Home Loan Eligibility Criteria

Following are the applicable eligibility criteria regards a 5 Crore home loan EMI:

Factors Affecting 5 Crore Home Loan EMI

Let’s examine the applicable factors affecting the 5 Crore loan EMI:

Loan Amount

The larger the loan amount, the higher your EMI will be, assuming the tenure and interest rate stay the same. For instance, borrowing 5 Crore at an 8.45% interest rate for 20 years results in an EMI of ₹4,32,331. However, if you borrow 6 Crore at the same interest rate and tenure, your EMI will rise to ₹5,18,797.

Interest Rate

The higher the interest rate, the higher your EMI and the total interest cost will be. For instance, borrowing 5 Crore at an 8.45% interest rate for 20 years results in an EMI of ₹4,32,331, with a total interest cost of ₹5,37,59,440. However, if you secure the same loan at a 9.45% interest rate, your EMI will rise to ₹4,64,434, and your total interest cost will escalate to ₹6,14,64,160.

Loan Tenure

The longer the loan tenure, the lower your EMI, but the higher your total interest cost will be. For example, if you borrow 5 Crore at an 8.45% interest rate for 20 years, your EMI will be ₹4,32,331, with a total interest cost of ₹5,37,59,440. However, if you extend the same loan to a 30-year term, your EMI will decrease to ₹3,82,686, but your total interest cost will rise to ₹8,77,66,960.

Documents Required for 5 Crore Home Loan

Following are the required documents about the 5 Cr home loan EMI:

• Proof of Identity: PAN Card (Mandatory), Aadhaar Card, Passport, or Driving License.
• Proof of Address: Electricity Bill, Gas Bill, Property Tax Receipt, or Voter ID.
• Proof of Income: Salary slips, Form 16, and income tax returns are necessary for salaried individuals. On the other hand, self-employed applicants must submit business-related proofs, such as the Balance Sheet, Profit and Loss Account, Income Tax Returns, TDS certificates, and other relevant documents.
• Proof of Property: Title deeds, allotment letter, valuation report, receipt of payment, etc.

5 Crore Home Loan Processing Fees & Other Charges

Following are the expected fees and charges regards the EMI for a 5 Crore home loan:

• Processing Fee: The processing fee is a one-time charge the lender applies to process your home loan application. It typically varies as a percentage of the loan amount, ranging from 0.50% to 3%, plus GST.
• Conversion Fee: This is a fee the lender charges for switching between types of interest rates, such as transitioning from MCLR (Marginal Cost of funds-based Lending Rate) to a repo rate or from a fixed interest rate to a floating one, and vice versa.
• Foreclosure Fee: The foreclosure fee is a penalty the lender imposes if you repay your entire loan amount before the term concludes. Some lenders might not apply this fee under specific loan schemes or during special promotions or events.
• Miscellaneous Charges: Miscellaneous charges are fees the lender imposes for various services or events associated with your home loan, including inspection, valuation, legal, documentation, stamp duty, CERSAI registration, ITR verification, and more.

5 Crore Home Loan EMI Calculator

Let’s take a look at the expected ₹5 crore home loan EMIs in different tenures:

Important Key Points to Consider While Taking 5 Crore Home Loan

Here are some of the important key points to consider while taking a 5 Crore home loan:

• Assess the loan amount, cost, EMI, and tenure: You should have a clear idea of how much loan you can afford, how much interest you will pay, what will be your monthly EMI, and how long you will have to repay the loan. 
• Check your home loan eligibility: To qualify for a 5 crore home loan, you need to meet certain criteria based on your income, age, credit score, work experience, and other factors.
• Choose the right type of home loan: You can opt for a fixed-rate, floating-rate, or hybrid home loan, depending on your preference and risk appetite.
• Get your home loan pre-approved: A pre-approved home loan can help you fix your budget, narrow your property search, and negotiate better with the seller.
• Ensure safe storage and easy retrieval of property documents: The lender will keep your property documents as collateral until you repay the loan. 

Tips to Minimise Your 5 Crore Home Loan EMI

The following are the applicable tips to minimise your 5 Crore home loan EMIs:

• Opt for a higher down payment: The more you pay upfront, the less you have to borrow, and the lower your EMI will be.
• Choose a shorter loan tenure: Although this will increase your EMI, it will reduce the total interest you pay over the loan period.
• Make partial prepayments: Whenever you have surplus funds, you can use them to reduce your principal amount and your EMI.
• Improve your credit score: A higher credit score can help you get a lower interest rate on your home loan, lowering your EMI.
• Consider home loan balance transfer: If you find a lender who offers a lower interest rate than your current one, you can switch your home loan to them and save on your EMI.