How To Apply for Rs.10 Lakh Home Loan: Calculate EMI & Interest Rate

Home Loan

The Central Government’s Digital India initiative and reduction in interest rates have contributed significantly to the growth of the home loan sector. According to recent reports, the affordable housing loan segment witnessed a growth of nearly 8% between FY20 and FY21. 

However, it has also been noticed that the small-ticket loan segment, for instance, Rs. 10 lakh home loans has the highest delinquency rate. To curtail such issues in future, the first step will be to assess your monthly obligations using an EMI calculator. 

This article reflects on the usage and benefits of the EMI calculator for Rs.10 lakh home loan.

How Does an EMI Calculator Work? 

The EMI formula used in the calculation is —

EMI = P x R x (1+R)^N / [(1+R)^N-1]

In this formula, the key components are:

• P = Principal amount
• R = Rate of interest
• N = Loan repayment tenure (in months or years) 

Using this formula, if you assume that a person is availing a Rs. 10 lakh home loan for 12 years at 6.7% interest rate, the EMI components will be:

• P = 10,00,000
• R = 6.70/12 = 0.55
• N = 144 months 

Now, the EMI calculation will be —

EMI = 1000000 x 0.55 x (1+0.55)^144 / [(1+0.55)^144-1] = Rs. 10,125 

Benefits of an EMI calculator for Rs. 10 Lakh Home Loan 

It is necessary to have a proper repayment strategy before you get yourself into long-term commitments like a home loan. In that regard, it is essential to evaluate your EMIs. Even though you can calculate your monthly obligations manually, the financial tool remains more advantageous. Here are some reasons why:

• Fast and user-friendly 

In order to evaluate your equated monthly instalment for an Rs. 10 lakh home loan, you need to provide certain values first. With an EMI calculator, you just need to enter these values starting from the principal amount first. Apart from that, you also need to provide the rate of interest your current lender is charging and the number of years you are given to repay the home loan. 

• Convenient for comparisons 

When you are applying for a home loan, it is expected that you will need to compare different combinations of loan amount and repayment tenure. This helps in deciding how much you will be able to bear for that specified period. Since this particular financial tool is free to use, you can compare different combinations of principal amount and tenure as many times as you want. You get the results almost instantly, enabling you to make a decision quickly. 

• Availability of loan amortisation schedule 

Apart from the monthly instalment amount, this financial tool also provides a loan amortisation schedule. It consists of the breakup of the principal component and interest of your loan. This allows you to understand how much of a specific month’s EMI is going towards the interest payment and principal repayment. 

Additionally, one of the key benefits you get while using an EMI calculator is accuracy. Despite providing instant results, such financial tools ensure that the calculated EMI amount is error-free. 

Also read: Why You Should Always Compare Home Loan Interest Rates?

Bank and NBFC Interest Rate for Rs.10 lakh Home Loan [2022]

The table below shows the banks and NBFC’s interest rates and the processing fees they charge for Rs.10 lakh home loan:

Disclaimer: Note that this table is for educational purposes only and the final rate offered is solely at the concerned lender’s discretion. Navi doesn’t take responsibility for any interest rate changes that may occur in the due course of time.

Also read: How To Choose Banks/NBFCs For Home Loans?

What Are the Eligibility Criteria to Apply for Rs.10 lakh Home Loans

Most lenders try to keep their eligibility parameters flexible in order to help borrowers finance the purchase of a new home However, you should go through the following criteria before applying for a home loan:

• For salaried employees:

• For self-employed individuals:

Note that the eligibility requirements vary across different lenders. 

Documents Required to Apply for Rs.10 lakh Home Loan

Many advancements are seen in the borrowing system today, and the lenders now offer home loans with minimal documentation. Borrowers need not worry about any paperwork and can receive financial help without any visiting to offices. Nonetheless, you will need to furnish certain necessary documents, like the following:

For Salaried

• PAN
• Identity Proof: Passport, voter’s ID, driving licence, Aadhaar Card, etc.
• Address Proof: Identity Proof: Passport, voter’s ID, driving licence, Aadhaar Card, Ration Card, Property Tax, etc.
• Income Proof: Salary slip for the past 3 months
• Form 16 for the past year
• Certified letter from Employer
• Increment or Promotion letter
• IT returns of past 3 years

For Self-employed

• PAN
• Identity Proof: Passport, voter’s ID, driving licence, Aadhaar Card, etc.
• Address Proof: Identity Proof: Passport, voter’s ID, driving licence, Aadhaar Card, Ration Card, Property Tax, etc.
• Income Tax Returns (ITR) of last 3 years
• Balance Sheet and Profit & Loss Account Statement of the Company/Firm (duly attested by a C.A.)
• Business License Details (or any other equivalent document)
• The license of Professional Practice (For Doctors, Consultants, etc.)
• Registration Certificate of Establishment (For Shops, Factories & Other Establishments)Proof of Business Address

Home Loan EMI Calculations for Rs.10 Lakh

To help you get a better understanding of EMI calculations, here’s is an illustration of how much the EMIs would be for Rs.10 lakh home loan for 5 years, 10 years, 15 years and 20 years. Here, the repayment tenure will differ while the principal amount and interest rate will remain unchanged.

*Note that this is for illustrative purposes only.

How to Use Navi’s EMI Calculator for Rs. 10 Lakh Home Loan 

Follow these steps to use Navi’s interest calculator and get the EMI value of a Rs. 10 lakh home loan:

Step 1: Visit the online portal of Navi and choose ‘home loan’ from the tab.

Step 2: Now, you need to click on the ‘EMI calculator’ option.   

Step 3: Here, you need to provide the necessary values to calculate your equated monthly installment amount. Make sure you are entering accurate inputs. 

Step 4: After providing these values, click on ‘Submit’ to get the exact EMI result. 

How to Apply for Rs.10 lakh Home Loan with Navi 

To obtain a Rs.10 lakh home loan without any hassles on Navi’s technology-driven platform, follow these steps:

Step 1: Install the Navi app. 

Step 2: Open the app and register yourself as a user by entering your mobile number. 

Step 3: Choose the option of “Home Loan”.

Step 4: Now, put in property location as, choose the type of property you are purchasing and mention its address.

Step 5: Finally, provide your personal information, like PAN, Aadhaar number, and your employment information. 

Step 6: Upon submitting your property documents, your application will be completed. Navi will verify your documents and instantly approve your loan. 

Final Word 

A clear understanding of the amount you will have to pay every month for a specified period of time helps in managing your finances better. Based on that, you will be deciding the loan amount to avoid a debt trap. 

Even for small-ticket credit facilities, like a Rs.10 lakh home loan, assessing EMI is necessary for better financial planning. With an EMI calculator, the process of making a decision and planning the repayment becomes much easier. 

FAQs on Applying for Rs.10 lakh Home Loan

Before you go…

Are you looking to buy that house you’ve been eyeing 🏠 and you need a loan of up to ₹5 crore. Install the Navi app now and get instant in-principle approval right away! Interest rates starting at 7.89% p.a.

Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article. 

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