What Is The EMI For A 15-Lakh Home Loan?

If you are planning to take a home loan for 15 lacs, it is important to decide the right EMI amount. The monthly EMI amount is dependent upon the individual's flexibility. It depends upon the repayment capacity. Various factors influence the home loan EMI amount. 

What is the EMI on a home loan? 

EMI on a home loan is dependent on a variety of factors such as the home loan interest rate, loan principal amount, and the number of months in the loan term. There is no specific equated monthly installment imposed by the loan provider. It completely depends upon the individual to choose the right equated monthly installment based upon their repayment capacity. The amount of EMI that needs to be paid every month will actually depend upon the loan term. If an individual takes out a long-term loan, the monthly installment amount will be low. Similarly, for a short-term home loan, the monthly installment amount will be very high. It completely depends on the individual's repayment capacity and the number of monthly installments they are willing to pay. 

Factors that influence the EMI of a home loan

• The most important factor that decides the monthly related installment on a home loan is the loan term. The borrower's anticipated housing loan will actually decide the monthly installment amount. Therefore, if you are taking a home loan of Rs 15 lakh, the EMI amount will depend upon the number of months. If you are willing to pay a low amount monthly, it is always recommended to go for a long-term loan with a maximum number of months. The greater the number of months in repayment, the lower the EMI amount will be. 

• Another factor that decides the monthly EMI amount is the principal loan amount of the home loan. If you need a low monthly installment amount, make sure you do not borrow a very high principal loan amount. If the principal loan amount is greater, the monthly installment eventually becomes higher. Therefore, if you want an affordable EMI amount, make sure you borrow fewer funds.

• The rate of interest is another factor that impacts the monthly EMI amount. If you get a home loan with a high rate of interest, you will surely opt for a short-term loan. It becomes difficult to keep paying a high rate of interest for a long time. In that case, it is easier to pay a high monthly installment and close the loan soon. 

Wrapping up

For home loan eligibility, you need to make sure that you have all the home loan documents required by banks. The home loan interest rate is one of the most important factors in determining your monthly EMI amount.