Home » What you Need to Know About the EMI of a Home Loan of Rs 50 lakh

What you Need to Know About the EMI of a Home Loan of Rs 50 lakh

by Steven Brown
EMI for a 50 lakh home loan

A home loan is one of the most convenient and accessible sources of low-interest credit for constructing or purchasing a house. The extended loan term can go up to 30 years making it reasonably easy to repay the loan EMI without stretching your finances. 

However, knowing the correct EMI is crucial to ensure you do not become a defaulter during the loan term. Fortunately, most lenders provide EMI calculators for a home loan on their websites. You can use the calculator conveniently to calculate your net liability and choose a pocket-friendly EMI. 

Read on to find out top tips for the most affordable EMI for a 50 lakh home loan-    

Home Loan EMI – A Primer

Home loan EMI refers to the amount a borrower repays to the lender monthly for a home loan. The EMI is a combination of the principal and interest. So, the EMI for a 50 lakh home loan will consist of the principal amount of Rs. 50 lakh and the interest charged. Borrowers often use an EMI calculator for a home loan.

The interest rate of a home loan depends on various factors related to the borrower and the property. For instance, lenders consider the borrower’s monthly income and income stability to determine their creditworthiness. If your net monthly income is substantially higher than the minimum income mandated by your lender, you may expect the lowest rate on your home loan. Similarly, your loan eligibility will be higher if you work in a government firm. 

Some other factors lenders consider to determine home loan interest rates include the borrower’s age, credit history, property location, property status, and tenure.    

EMI Calculator For a Home Loan – The Best Way to Use It

An EMI calculator for a home loan displays the amount a borrower must pay monthly to the lender. But, besides this, the EMI calculator also shows you the home loan amortization schedule. The amortization schedule contains a detailed division of your home loan’s principal and an interest component. The information is essential for taxation and prepayment purposes.

A home loan provides two types of tax benefits – under Section 80C and Section 24. While Section 80C enables savings of up to INR 1.5 lakh on the principal component, Section 24 enables savings of up to INR 2 lakh on the interest component. Using an EMI calculator for a home loan, you can figure out how much you can save to repay the EMI for a 50 lakh home loan. Also, since the amortization schedule displays the interest amount, you can prepay the interest early to reduce the loan term and become debt free.

Here is how you can use an EMI calculator for a home loan:

Open an EMI calculator for a home loan by visiting a lender’s website. Lenders generally provide EMI calculators, eligibility calculators, and affordability calculators on their websites for use by prospective borrowers. 

Enter the principal. The principal is the amount you want to avail of as the home loan. The principal directly affects the home loan EMI – the higher the principal, the more the EMI.

Enter the interest rate. As previously mentioned, the interest rate depends on a host of factors. You must consult with your lender to learn about the applicable interest rate.   

Enter the tenure. The loan term can be between 5 years and 30 years. If your net monthly income is considerably higher than the minimum income needed by your lender, you can opt for a lesser loan term and become debt free earlier. 

Now that you know how to calculate the EMI for a 50 lakh home loan, understand the benefits of online home loan calculators in the following section.

Online EMI Calculator For a Home Loan – The Top Benefits

While you can visit a lender’s branch office to learn about the EMI for a Rs. 50 lakh home loan, the following are the reasons to check it online:

Hassle-Free – The online mode of EMI calculation is convenient and hassle-free. The entire process takes very little time. Error-Free – Since the EMI calculator for a home loan is digital, the chances of errors are zero. So you can make informed decisions and reduce the chances of a default.

Plan Properly – An EMI calculator gives you an accurate idea of the monthly amount you need to pay. So, you can plan to avoid falling into a debt trap.

Compute Taxes Conveniently – Since an EMI calculator for a home loan also displays the amortization schedule, you can plan your taxes like a professional.

Choose The Best Lender – You can use an EMI calculator multiple times to compare lenders. It can help you to decide which one to choose.

Conclusion

Using an EMI calculator for a home loan is the simplest way to know the EMI for a Rs. 50 lakh home loan. You can change the input figures as often as you want until arriving at a suitable EMI. Making informed decisions is crucial since home loans are a long-term financial commitment.

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