85 Lakh Home Loan EMI & Interest Rate

An ₹85 lakh home loan is a secured/collateral credit option. The lender often requires you to pledge any of your assets as collateral to disburse the necessary funds. Typically, this is the residential property for which you plan to take the loan. However, certain lenders may accept other assets such as commercial property, open land, or something equivalent to the loan amount. Thus, when planning to borrow such a significant amount, it is crucial to examine the expected ₹85 lakh home loan EMIs. You should also consider other pertinent information, including the applicable interest rate, processing fees, and other relevant charges associated with the loan. Continue scrolling down for further details.

Features and Benefits of 85 Lakh Home Loan

Following are some of the major features and benefits of an ₹85 lakh home loan:

• You can get a loan amount of up to ₹85 lakh or 90% of the property value, whichever is lower.
• You can choose a flexible repayment tenure of up to 30 years, depending on your income and age.
• You can enjoy competitive interest rates starting from 8.45% p.a.
• Under Section 24 and Section 80C of the Income Tax Act, you can save tax on the interest and principal of your home loan, respectively.
• You can prepay or foreclose your home loan without any penalty or charges, subject to the terms and conditions of your lender.

85 Lakh Home Loan Eligibility Criteria

The following are the applicable eligibility criteria for ₹85 lakh home loan:

• You should be an Indian resident with a regular source of income, either as a salaried or self-employed individual.
• You should be between 21 and 65 years of age at the time of loan application.
• You should have a stable income source covering the ₹85 lakh home loan EMIs. 
• You should have a good credit score of at least 701 or above.
• For salaried individuals, you should have a minimum of 2 years of work experience and 3 years of business continuity, and for self-employed individuals, you should have 3 years of business continuity.

Factors Affecting 85 Lakh Home Loan EMI

Let’s examine the applicable factors affecting the ₹85 lakh loan EMI calculation:

Loan Amount

The higher the amount you borrow, the higher your EMI will be, provided the tenure and the interest rate remain fixed. For example, if you take a loan of 85 Lakh at an 8.45% interest rate for 20 years, your EMI will be ₹73,496. But if you take a loan of 90 Lakh at the same rate and tenure, your EMI will increase to ₹77,820.

Interest Rate

The higher the interest rate, the higher your EMI and the total interest cost will be. For example, if you take a loan of 85 Lakh at an 8.45% interest rate for 20 years, your EMI will be ₹73,496, and your total interest cost will be ₹91,39,040. But if you take the same loan at a 9.45% interest rate, your EMI will increase to ₹78,954, and your total interest cost will increase to ₹1,04,48,960. By using a Home Loan EMI Calculator, you can better understand how the terms offered by different lenders will affect your monthly EMIs.

Loan Tenure

The longer the tenure, the lower your EMI, but the higher your total interest cost will be. For example, if you take a loan of 85 Lakh at an 8.45% interest rate for 20 years, your EMI will be ₹73,496, and your total interest cost will be ₹91,39,040. But if you take the same loan for 30 years, your EMI will decrease to ₹65,057, but your total interest cost will increase to ₹1,49,20,520.

Documents Required for 85 Lakh Home Loan

The following are the typical documents you may required to submit regarding ₹85 lakh home loan EMI:

• Identity Proof: PAN card, Aadhaar card, passport, driving license, voter ID, etc.
• Address Proof: Aadhaar card, passport, driver’s license, voter ID, utility bills, etc.
• Income Proof: salary slips, bank statements, Form-16, IT returns, GST returns, etc.
• Property Proof: Title deeds, allotment letter, agreement to sell, receipts of payments, etc.

85 Lakh Home Loan Processing Fees & Other Charges

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

• Processing Fee: This is a one-time charge levied by the lender for processing your home loan application. It is usually a percentage of the loan amount, ranging from 0.50% to 3%, plus GST. 
• Foreclosure Fee: This is a penalty charge levied by the lender if you repay your full loan amount before the end of its term. However, some lenders may waive the foreclosure fee under special schemes or during special offers or occasions.
• Conversion Fee: This is a charge levied by the lender if you want to switch from one interest rate regime to another, such as from MCLR (Marginal Cost of funds-based Lending Rate) to repo rate or from fixed to floating, and vice versa.
• Miscellaneous Charges: These are the charges levied by the lender for various services or events related to your home loan, such as inspection, valuation, legal, documentation, stamp duty, CERSAI, ITR verification, etc.