75 Lakh Home Loan EMI

In India, banks and other financial institutions frequently provide a 75 lakh home loan, which is a sizeable amount of money that helps with the purchase of residential real estate. This amount is subject to eligibility criteria based on factors such as the borrower's income, creditworthiness, and property value. Varying interest rates and repayment tenures necessitate careful consideration, emphasising the impact of interest on the overall repayment amount. Applicants undergo a meticulous verification process encompassing income documentation, credit history, and property valuation.

Features and Benefits of 75 Lakh Home Loan

Following are some of the general features and benefits of a 75 lakh home loan:

• Low interest rates: Home loans offer attractive interest rates, making it easier for you to repay your loan.
• Flexible repayment tenure: You can choose a repayment tenure that suits your financial situation.
• Quick processing: Home loan applications are processed quickly, ensuring that you get your loan approved and disbursed in a timely manner.
• Online account management: You can manage your home loan account online, making it easier for you to keep track of your loan repayments and other details.
• Tax benefits: You can claim tax deductions on the interest and principal amount of your home loan repayments. The amount of deduction depends on the loan amount and the purpose of the loan.
• Improved credit score: Timely repayment of your home loan can improve your credit score, making it easier for you to obtain credit in the future.
• Increased property value: Owning a home can increase your net worth and provide a sense of security for you and your family.
• Customisable loan options: You can choose from a variety of loan options, such as fixed or floating interest rates, to suit your financial needs.

*Please note that the interest rate and other terms and conditions of the loan are subject to change at the discretion of the bank.

75 Lakh Home Loan Eligibility Criteria

The eligibility criteria for a home loan can vary depending on the lender. Here are some general eligibility criteria that you may need to meet:

• You should be at least 24 years old and not more than 65 years old (for self-employed individuals) or 60 years old (for salaried individuals).
• You should have a steady source of income, with a minimum monthly income of Rs. 25,000 to Rs. 30,000.
• Salaried individuals should have a minimum work experience of 2 years, while self-employed individuals should show a minimum business existence of 3 years.
• The minimum credit score required is usually between 650 to 750.
• The debt-to-income ratio should be between 40% to 50%.

*Please note that these are general eligibility criteria and may vary depending on the lender. 

Factors Affecting 75 Lakh Home Loan EMI

Here are the key factors that affect the EMI for a home loan of 75 lakh:

• The loan amount is the principal amount borrowed from the bank. In this case, it’s 75 lakh. The EMI is directly proportional to the loan amount. Hence, a higher loan amount results in a higher EMI.
• The interest rate on the loan is another crucial factor. The EMI is directly proportional to the interest rate. Therefore, a higher interest rate would increase the EMI. Banks and financial institutions calculate the interest rate based on several factors such as your income, repayment capacity, credit history, and the prevailing market situation.
• The tenure of the loan, i.e., the time period within which the loan has to be repaid, also affects the EMI. A longer tenure generally means lower EMIs. However, a longer tenure also means a higher overall interest payout at the end of the loan tenure.
• The down payment is the upfront amount paid while purchasing a property. A higher down payment reduces the loan requirement, and consequently, the EMI.
• Prepayment of the loan reduces the outstanding balance, which in turn lowers the interest and EMI. However, some companies may charge a penalty for prepayment.
• If you shift your loan to a different lender, you may end up with a more favorable EMI amount. This is because the interest rates differ between lenders.

*Remember, it’s important to consider your financial situation and choose a loan structure that best suits your needs.

Documents Required for 75 Lakh Home Loan

Here are the key documents required for a home loan of 75 lakh:

1. Loan Application Form: This is the form where you provide all your personal and financial details.
2. Identity Proof: You can provide any government-issued identity proof like PAN Card, Aadhaar Card, Voter’s ID Card, or Driving License.
3. Age Proof: Documents like Aadhaar Card, PAN Card, Passport, Birth Certificate, 10th Class Marksheet, Bank Passbook, or Driving License can be used as proof of age.
4. Residence Proof: Documents like Bank Passbook, Voter’s ID, Ration Card, Passport, Utility bills (Telephone Bill, Electricity Bill, Water Bill, Gas Bill), LIC Policy Receipt, or Letter from a recognized public authority verifying the customer’s address can be used as proof of residence.
5. Income Proof: For salaried individuals, you need to provide Form 16, a certified letter from Employer, Payslip of the last 3 months, and IT returns of the past 3 years. For self-employed individuals, you need to provide Income Tax Returns (ITR) of the last 3 years, Balance Sheet and Profit & Loss Account Statement of the Company/Firm (duly attested by a C.A.), Business License Details (or any other equivalent document), The license of Professional Practice (For Doctors, Consultants, etc.), Registration Certificate of Establishment (For Shops, Factories & Other Establishments), and Proof of Business Address.
6. Property Documents: These include Receipts of payments made to the developer (in case of a new house), Allotment Letter / Buyer Agreement, Title Deeds including the chain of previous property documents (in case of house resale), A copy of the sale agreement (if already executed), Title Deeds of the plot (in case of house construction), A detailed estimate of house construction by an Architect / Civil Engineer, A copy of the plans, approved by the Local Authorities, and Proof of no encumbrances on the property.
7. Other Documents: Passport size photographs of all the applicants / co-applicants (to be affixed to the application form and signed across).

*Please note that the list of documents may vary across lenders based on your home loan type, property type, individual credit profile, etc.

75 Lakh Home Loan Processing Fees & Other Charges

The processing fees and other charges for a home loan of 75 lakh can vary depending on the financial institution. Here are some general details:

• Processing Fees: Almost all lenders charge processing fees for handling your home loan application. This fee varies with financial institutions. Some charge this fee on a fixed term, while others charge it as a percentage of the loan amount, typically around 0.5% or 1%. For instance, for SBI Home Loan, the processing fee is 0.4% of the loan amount. Similarly, for HDFC Home Loan, the processing fee is 0.5% of the loan amount, with a minimum amount of Rs 3,000 and a maximum of Rs 10,000.
• Other Fees: For a variety of reasons, lenders and other parties involved in the home loan process may charge home loan fees, commonly referred to as closing costs. These include loan initiation, appraisal, title pursuit and insurance, prepaid interest, loan discount points, PMI premiums, recording charges, and HOA fees.
• Down Payment: When you apply for a home loan, you should know that the lender will not fund the entire property value. For example, if your property is worth Rs 80 lakh, you may receive around Rs 60 or 70 lakh as the loan amount.

*Please note that these are general figures and the exact amounts can vary based on the lender, region, and type of loan.

75 Lakh Home Loan EMI for 5-30 Years

Let’s calculate the EMI for a home loan of ₹75 lakh for various tenures ranging from 5 to 30 years. Here are the calculated EMIs for different tenures:

*Please note that the EMI calculated is based on an assumed interest rate of 8.45% per annum.

Important Key Points to Consider while Taking a 75 Lakh Home Loan

It’s important to consider a few important factors while contemplating a 75 lakh house loan in order to make well-informed judgements. Here are a few important considerations to take into account about:

• Assess your eligibility for a 75 lakh home loan based on factors such as your income, credit score, employment stability, and existing financial commitments.
• Explore the interest rates offered by various banks and financial institutions. A slight difference in interest rates can significantly impact the overall repayment amount.
• Decide on the loan tenure that aligns with your financial goals and capabilities. Longer tenures may result in lower EMIs but may also lead to higher interest payments over time.
• Calculate the Equated Monthly Installments (EMIs) using a reliable EMI calculator like Urban Money EMI calculator. Ensure that the monthly repayment is comfortable within your budget to avoid financial strain.
• Be aware of additional costs such as processing fees, legal charges, and documentation fees. These can add up and impact the overall cost of the loan.
• Maintain a healthy credit score, as it plays a significant role in determining the interest rate you qualify for. A higher credit score often results in better loan terms.
• Understand the prepayment and foreclosure terms associated with the loan. Some lenders may charge penalties or have specific conditions for early repayment.
• Choose between fixed-rate and floating-rate home loans. Fixed-rate loans offer stable EMIs, while floating-rate loans can vary based on market conditions.

Advice on How to Reduce the EMI on Your 75 Lakh House Loan

Minimising your 75 lakh mortgage EMI is a prudent financial objective that can lessen the hardship of monthly payments and support stable finances over the long run. Here are some pointers to assist you in reaching this goal:

• Higher Down Payment: Opt for a substantial down payment to reduce the loan amount and subsequently lower your monthly EMI.
• Shorter Loan Tenure: Choose a shorter repayment period to decrease the overall interest paid, even if it results in a slightly higher EMI.
• Compare Interest Rates: Thoroughly research and compare interest rates from different lenders to secure the most favourable terms.
• Part Prepayment: Whenever possible, make part prepayments towards the loan to reduce the outstanding principal and lower future EMIs.
• Financial Discipline: Maintain disciplined financial habits to ensure timely EMI payments and avoid unnecessary expenditures.
• Regularly Review Finances:Periodically reassess your financial situation to explore opportunities for refinancing or adjusting your loan terms based on improved income or financial windfalls.