15 Lakh Home Loan EMI & Interest Rate

Features and Benefits of 15 Lakh Home Loan

Following is a list of the key factors and benefits of a home loan 15 lakh EMI:

Free From Rent

When you start living in your own home, you are no longer required to pay rent. Hence, you can ultimately eliminate challenges you may be familiar with, such as rent hikes, lease agreements, or landlord issues, all of which can consume a significant portion of your income and savings.

Long Repayment Tenure

Home loans typically feature a tenure of up to 30 years, and some lenders may even consider extending it to 40 years. Namely, the longer the tenure, the lower the EMI amount, eliminating the risk of defaulting on your monthly repayment.

Low-Interest Rates

The average interest rate for a 15 lakh home loan EMI typically ranges from 8% to 8.5% per annum. This is among the lowest in the market when compared to other types of loans, such as personal loans, car loans, business loans, and more.

Tax Benefits

Choosing a 15 lakh home loan EMI makes you eligible for tax deductions under Section 80C and Section 24B. To be specific, Section 80C allows you to deduct the amount you’ve paid as EMIs during the financial year, with a maximum limit of Rs. 1.5 lakh. Meanwhile, Section 24B provides deductions for the interest paid on the loan, up to a maximum limit of Rs. 2 lakh.

Appreciating Asset

As real estate prices usually go up in the long run, purchasing a property today is likely to appreciate in the future. Plus, you have the option to sell or rent your house and potentially gain more value than what you initially paid for it, reinforcing the idea that residential real estate continues to be a profitable investment.

Eligibility Criteria For 15 Lakh Home Loan

The eligibility criteria for a 15 lakh home loan may vary depending on the lender, the type of loan, and the borrower’s profile. However, typically, these are the eligibility criteria that most lenders in India follow:

• Age: The applicant should be at least 21 years old and not more than 60 years old at the time of loan maturity.
• Income: The applicant should have a stable income, preferably ranging from Rs 20,000 to Rs 25,000 per month.
• Occupation: Both salaried and self-employed individuals are applicable.
• Credit Score: Ideally, a credit score of 700 or above is considered favourable.
• Residence: The applicant might be an Indian citizen.

Important Tip : Check your eligibilty by using our AI based home loan eligibility calculator.

Factors Affecting 15 Lakh Home Loan EMI

Let’s take a look at several factors affecting your loan tenure.

• Age: The lender typically extends a maximum age limit of 60, corresponding to India’s retirement age. Consequently, the younger you are, the longer your loan tenure will be, and vice versa.
• EMI (Equated Monthly Instalment): EMI is the fixed monthly payment you must make to repay your 15 lakh EMI home loan. Notably, the EMI amount decreases with a longer loan tenure and increases with a shorter one.
• Income: Having a substantial income can enable you to secure a larger loan amount, potentially leading to more favourable terms and interest rates as well. 
• Credit Score: The higher your credit score, the greater the likelihood of getting approved for your loan application. Ideally, lenders consider a credit score of 700 or above as favourable.
• Debt-To-Income Ratio (DTI): Maintaining a lower debt-to-income ratio can positively impact your 15 lakh home loan EMI. Keeping your Debt-To-Income Ratio below 40% of your income is ideal. 
• Loan-To-Value Ratio: Maintaining a high loan-to-value ratio, where the requested loan amount does not exceed 90% of the property value, can also influence your home loan approval and the corresponding interest rate. An home loan EMI calculator can assist in determining how changes in the loan amount can impact your EMIs.
• Interest Rate: The interest rate reflects the extra percentage you need to pay on your home loan amount, and various factors, including your credit score, income, loan amount, tenure, etc determine it.

Documents Required for 15 Lakh Home Loan

Following are the general documents required for a 15 lakh loan EMI:

• KYC Documents: These include your identity and address proof such as PAN card, Aadhaar card, passport, voter ID card, driving licence, etc.
• Income Documents: For salaried applicants, you must submit your salary slips, Form 16, bank statements, income tax returns, etc. For self-employed applicants, you may also need to submit your business proof and financial statements such as a profit and loss account, balance sheet, business licence, registration certificate, etc.
• Property Documents: These include your property proof and ownership proof, such as title deeds, sale agreements, allotment letters, receipts of payments, encumbrance certificates, etc.

Processing Fees & Other Charges For 15 Lakh Home Loan

The fee structure of a home loan 15 lakh EMI may vary depending on the lender, the loan scheme, the interest rate type, and other factors. However, in general, we provide you with some information and estimates.

Fee/Charge	Description	Amount
Processing Fee	A one-time charge for processing the loan application	0.25% to 3% of the loan amount + GST
Technical Assessment Fee	A charge for assessing the physical and market value of the property	Rs 1,000 to Rs 5,000 + GST
Legal Fee	A charge for verifying the legal documents of the property	Rs 2,000 to Rs 10,000 + GST
Stamp Duty	A tax levied by the state government on the property transaction	Varies from state to state, usually 3% to 10% of the property value
Registration Charge	A fee paid to the registrar for transferring property ownership into your name	Varies from state to state, usually 1% to 2% of the property value
Documentation Charge	A charge for preparing and executing the loan agreement and other documents	Rs 500 to Rs 2,000 + GST
Prepayment Charge	A penalty for repaying the loan amount before the end of the tenure	Nil for floating-rate loans; varies for fixed-rate loans
Foreclosure Charge	A penalty for closing the loan account before the end of the tenure	Nil for floating-rate loans; varies for fixed-rate loans
Conversion Charge	A fee for switching from one interest rate type or scheme to another	0.5% to 2% of the outstanding loan amount + GST
Cheque Bounce Charge	A penalty for dishonouring a cheque or ECS mandate due to insufficient funds or other reasons	Rs 500 to Rs 1,000 per instance + GST
Late Payment Charge	A penalty for delaying or missing an EMI payment	2% to 3% per month on the overdue amount

15 Lakh Home Loan EMI For 5 Years

The following table includes the EMI for 15 lakh home loan for 5 years at 8.5% p.a interest rate.

Loan Amount	Rate of Interest	Loan Tenure	EMI
Rs. 15 Lakhs	8.50%	5 Years	Rs.30,775

15 Lakh Home Loan EMI For 10 Years

The below mentioned table showcases the EMI for 15 lakh home loan for 10 years at 8.5% p.a interest rate.

Loan Amount	Rate of Interest	Loan Tenure	EMI
Rs. 15 Lakhs	8.50%	10 Years	Rs.18,598

15 Lakh Home Loan EMI For 15 Years

This below table showcases the EMI for 15 lakh home loan for 15 years at 8.5% p.a interest rate.

Loan Amount	Rate of Interest	Loan Tenure	EMI
Rs. 15 Lakhs	8.50%	15 Years	Rs.14,771

15 Lakh Home Loan EMI For 20 Years

The below mentioned table includes the EMI for 15 lakh home loan for 20 years at the interest rate of 8.5% p.a.

Loan Amount	Rate of Interest	Loan Tenure	EMI
Rs. 15 Lakhs	8.50%	20 Years	Rs.13,017

15 Lakh Home Loan EMI For 25 Years

The below mentioned table show you the EMI for 15 lakh home loan for 25 years at 8.5% p.a interest rate.

Loan Amount	Rate of Interest	Loan Tenure	EMI
Rs. 15 Lakhs	8.50%	25 Years	Rs.12,078

15 Lakh Home Loan EMI For 30 Years

The following table showcasing the EMI for 15 lakh home loan for 30 years at 8.5% p.a interest rate.

Loan Amount	Rate of Interest	Loan Tenure	EMI
Rs. 15 Lakhs	8.50%	30 Years	Rs.11,534

Important Key Points to Consider While Taking 15 Lakh Home Loan

Here is a list of tips for taking a 15 lakh loan EMI:

Your Repayment Capacity

Assess your current and future earnings, expenditures, savings, and investments to determine the Equated Monthly Instalment (EMI) amount you can comfortably manage without compromising your other financial objectives and aspirations. Ideally, keeping your EMI at or below 40% of your monthly net income is advisable.

Interest Cost

Interest cost matters tremendously as securing the right interest rate can save thousands of your hard-earned money in the long run. So, you should compare the interest rates and associated costs various lenders offer for different home loan tenures. Long-term terms may feature lower interest rates but higher overall interest costs over the loan period. Short-term tenures may have higher interest rates but lower total interest costs.

Additional Charges

Be vigilant about other fees and charges associated with your loan, including processing fees, prepayment penalties, or any hidden charges that might be encountered along your repayment journey. This proactive approach can help you avoid any unexpected or unpleasant surprises in the future.

Tax Benefits

You should confirm the tax benefits you’re eligible for under Section 80C and Section 24 of the Income Tax Act. The highest deduction for principal repayment is Rs. 1.5 lakh per year, and for interest payments, it’s Rs. 2 lakh per year. Opting for a longer loan tenure may allow you to maximise your tax benefits in the long run. However, selecting a shorter tenure could decrease both your tax advantages and interest expenses.

Tips to Minimise Your 15 Lakh Home Loan EMI 

Let’s take a look at certain tips you can follow to minimise your 25 lakh loan EMI:

Find the Lowest Interest Rate

Using the official website of Urban Money can easily provide you with the range of interest rates charged by various banks and housing finance companies. However, it’s important to understand that the lowest rate is not always offered to all borrowers, as it often comes with various terms and conditions. Thus, you need to compare the best rate you can obtain based on your profile. Notably, factors like maintaining a strong credit score, having a female co-applicant, and having a salaried income can assist you in securing a lower interest rate.

Pick the Right Property

Several lenders maintain a list of property types and locations for which they do not offer loans. If your property falls within these categories, you may face a higher interest rate or even have your loan application rejected. Hence, it’s crucial to consult with your lender before confirming your property choice. Furthermore, it’s advisable to avoid properties entangled in litigation, possessing unclear titles, exhibiting structural defects, or any other issues.

Arrange for a Higher Down payment

The larger your down payment, the smaller your loan amount, and consequently, your Equated Monthly Instalment (EMI). While most lenders typically request a minimum down payment of 20% of the property’s value, you can pay more if you have the necessary funds. Doing so will decrease your interest expenses and enhance your eligibility for the loan.

Opt Longer Tenure

A longer loan tenure results in lower EMIs, which means you will pay more interest over the loan’s duration. Therefore, it is wise to balance EMI affordability and interest expenses. You can also use a 15 lakh home loan EMI calculator on the Urban Money website to evaluate how varying tenures impact your EMI amount.

Go for Home Saver Loans

Many lenders offer home savings loans that allow you to deposit surplus funds into a linked savings or current account, effectively reducing your interest burden. Specifically, interest is calculated based on the net outstanding loan balance minus the balance in your linked account. This way, you can reduce your interest expenses and also withdraw your funds whenever necessary.