90 Lakh Home Loan EMI & Interest Rate

The process of becoming a homeowner is an exciting one, and getting a sizable house loan is frequently essential to opening the doors to your ideal home. A 90 lakh home loan is a light in the world of big financial decisions, providing access to a stable future.

A 90 lakh home loan is more than simply a financial arrangement; it is a catalyst for goals, a way to turn designs into the cosy reality of home. Borrowing such a large sum may appear scary, but it serves as the link between your ideal home and its practical incarnation.

Come along on a journey where a 90 lakh home loan is the brushstroke that paints the picture of your dream home. Together, with confidence and joy, let's turn the key to homeownership and explore the world of possibilities.

Features and Benefits of 90 Lakh Home Loan

Here are some of the salient features of a 90 Lakh Home Loan:

• High Loan Amount: Lenders offer high loan amounts, up to ₹90 Lakh or more, depending on your eligibility criteria.
• Attractive Interest Rates: Home loans come with competitive interest rates, which can make your EMIs affordable.
• Flexible Repayment Tenure: You can choose a repayment tenure that suits your financial situation. The tenure can range from 5 to 30 years.
• Tax Benefits: You can avail tax benefits under Section 24 and 80C of the Income Tax Act on the principal and interest amount of your home loan.
• Balance Transfer Facility: If you find a lender offering a lower interest rate, you can transfer your existing home loan to that lender.
• Simplified Documentation: The documentation process for home loans is usually straightforward and easy.
• Quick Approval: Once you submit all the required documents, the approval process is usually quick.

90 Lakh Home Loan Eligibility Criteria

To qualify for a ₹90 lakh home loan at HDFC Bank, you must meet the following eligibility conditions and documentation requirements:

Criteria for Salaried Applicants

• Age: Applicants should be between 18 and 60 years old.
• Income: Minimum income of ₹20,000 per month for Delhi, Mumbai, Bangalore, Pune, and Chennai residents. Minimum income of ₹15,000 per month for the residents of other cities.
• Work Experience/Continuity: 2 years of work experience and at least 6 months in the current organisation.

Criteria for Self-employed Applicants

• Age: Applicants should be between 18 and 65 years old.
• Income: Minimum income of ₹20,000 per month for residents of Delhi, Mumbai, Bangalore, Pune, and Chennai. Minimum income of ₹15,000 per month for the residents of other cities.
• Business Continuity: Minimum 3 years in business or profession with the number of successful years in the business or profession.

Factors Affecting 90 Lakh Home Loan EMI

The EMI for a ₹90 lakh home loan is influenced by several factors:

1. The principal amount that you borrow. In this case, it’s ₹90 lakh.
2. The rate at which interest is charged on the loan amount. For example, HDFC Bank and Navi offer home loans at competitive interest rates starting at 8.45% p.a.
3. The period over which you choose to repay the loan. The EMI decreases as the tenure increases because the principal amount is spread over a longer period. For instance, the EMI for a ₹90 lakh home loan at an interest rate of 8.45% p.a. for tenures of 5, 10, 15, 20, 25, and 30 years are ₹1,84,432, ₹1,11,347, ₹88,363, ₹77,820, and ₹68,884 respectively.
4. A low credit score may result in higher interest rates, which can significantly impact the cost of the loan over its term.

Documents Required for 90 Lakh Home Loan

To apply for a ₹90 Lakh Home Loan, you need to submit the following documents:

Mandatory Documents

• PAN Card or Form 60
  
  If the customer does not have a PAN card, any one of the following documents can be submitted that fall under the Officially Valid Documents (OVD) category. This is for establishing the legal name & current address of individuals:
  

• Passport, the validity of which has not expired.
• Driving licence that has not expired.
• Election /Voters identification card.
• Job card issued by NREGA and duly signed by the officer of the state government.
• A letter with name and address information was issued by the National Population Register.
• Proof of possession of Aadhaar number (to be obtained voluntarily).

For Salaried Individuals

1. Last 3 months’ salary slips.
2. Last 6 months’ bank statements, showing salary credits.
3. Latest Form-16 and IT returns.

For Self Employed Professionals and Non Professionals

1. Income Tax Returns along with computation of income for at least the last 2 assessment years (of both the individual and the business entity and attested by a CA).
2. At least last 2 years’ Balance Sheet and Profit & Loss A/c Statements, with Annexures / Schedules (of both the individual and the business entity and attested by a CA).
3. Last 12 months’ current A/C statements of the business entity and savings account statements of the individual.

Additional Documents

1. Copy of the allotment letter / buyer agreement.
2. Receipt/ (s) of payment/ (s) made to the developer.
3. Title deeds include the previous chain of property documents.
4. Receipt/ (s) of the initial payment/ (s) made to the seller.
5. Copy of the agreement to sell (if already executed).
6. Title Deeds of the Plot.
7. Proof of no encumbrances on the property.
8. Copy of the plans, approved by the local authorities.
9. Construction estimate by an architect / civil engineer.

*Please note that these are the general documents required and the exact requirements may vary based on the bank’s policy and other factors

90 Lakh Home Loan Processing Fees & Other Charges

When you apply for a home loan, you may have to pay some fees to the lender. These fees are:

• A one-time fee that covers the cost of processing your loan application. It is usually non-refundable and depends on how much you borrow and the lender’s credit policy. It can range from 0.50% to 2.00% of the loan amount. You also have to pay a GST of 18% on this fee.
• Administrative charges are for loan applications that are rejected and not refunded.
• Foreclosure charges are penalty fees that you have to pay if you repay your entire loan amount before the end of the loan term.
• There are additional charges that may apply for certain services or situations, such as conversion fees, penal rates, pre-payment/foreclosure fees (for fixed-rate home loans), etc.

*These fees are not fixed and may vary across different lenders, such as housing finance companies and banks.

90 Lakh Home Loan EMI for 5-30 Years

Here are the EMI calculations for a 90 lakh home loan for various tenures. The calculations are based on an interest rate of 8.50%.

Loan Tenure (Years)	EMI Amount (₹)
5	1,84,649
10	1,11,587
15	88,627
20	78,104
25	72,470
30	62,253

*Remember, the EMI, interest rate, and other charges can vary based on the lender’s policies and the borrower’s credit profile.

Important Key Points to Consider while Taking 90 Lakh Home Loan

To make well-informed decisions, it is crucial to take into account a few crucial factors when thinking about a 75 lakh house loan. Here are a few important considerations to take into account:

• Look for low interest rates, easy repayment plans, and friendly customer support. Don’t just go for the first offer you see.
  
• Learn about the different kinds of home loans and how they work. Some have fixed rates, some have floating rates, and some have both. Each one has its own advantages and disadvantages. Choose the one that suits your needs and budget.
  
• If you have a long-term relationship with a bank, you might get a pre-approved home loan. This means the bank will approve your loan before you find a property. This can save you time and hassle.
  
• You will have to pay some money upfront as a down payment for your home loan. For a Rs 90 lakh property, you will have to pay Rs 18 lakh as down payment. The rest of Rs 72 lakh will be your loan amount.
  
• You will have to pay back your loan in monthly installments called EMIs. The amount of your EMI will depend on three things: how much loan you took, what interest rate you got, and how long your loan tenure is.
  
• Keep in mind that these points are not fixed and may change depending on your situation and needs. It is always wise to talk to a financial expert before you make such a big decision.

Tips to Minimise Your 90 Lakh Home Loan EMI

Here are some smart strategies to reduce your 90 lakh home loan EMI:

• Increase Down Payment:
  • Why? Reduces the principal amount, leading to lower EMIs.
  • Benefit: Saves on interest and improves loan terms.
• Shorten Loan Tenure:
  • Why? Less interest accrues over a shorter period.
  • Benefit: Overall savings on interest payments.
• Make Prepayments:
  • Why? Decreases principal and may reduce tenure.
  • Benefit: Quicker loan payoff and interest savings.
• Refinance the Loan:
  • Why? Take advantage of lower interest rates.
  • Benefit: Reduced EMIs and better loan conditions.