Benefits Of ₹ 25 Lakh Home Loan And How To Calculate EMI

There are various banks and non-banking financial corporations in India offering home loans to help you purchase your dream house. These secured loans are offered at competitive interest rates to help borrowers meet their financial requirements.

If you apply for this borrowing option, a primary aspect that you should pay attention to is how to repay the loan. You will have to pay a fixed amount, called equated monthly installment (EMI), to your lender at regular intervals. Unfortunately, the EMI amount can cause a massive dent in your savings if not calculated properly. 

Financial institutions offer a simple EMI calculator tool to save you from financial pressure. Keep reading to know learn about using an EMI calculator for Rs. 25 lakh home loans. 

How Can A Home Loan Of ₹ 25 Lakh Help?

Rahul recently relocated to Bangalore and is searching for affordable mid-range apartments. He found his dream house but doesn’t have enough savings to purchase it. This issue can be easily solved with a home loan of Rs. 25 lakh. 

If you are in a similar situation, don’t compromise on your comfort or luxury. Taking a home loan has never been easier. With just a few clicks, you can check your loan eligibility using an EMI calculator and opt for a suitable home loan. 

Also Read: 5 Tips To Keep In Mind Before Applying For A Home Loan

EMI Calculator: How Does It Work?

A vital part of financial planning while applying for a home loan is to calculate the EMI amount. As these are usually high-value loans paid back over a long period of time, you might be paying EMIs for a large part of your life. If you opt for a loan scheme with an EMI beyond your budget, you can fall into a debt trap. 

You can use a home loan EMI calculator to prevent such a situation. This online tool shows your loan’s EMI amount by analysing the principal amount, tenure and interest rate. It uses the following standardised formula to fulfill the task:

EMI = [P x R x (1+R)^N]/[(1+R)^N-1] 

​​P = Principal Amount

R = Rate of Interest 

N = Loan Tenure

Let’s consider an example to understand how this EMI calculator works:

Rahul goes to a lender to obtain a home loan of Rs. 25 lakh. This lender offers the loan at an interest rate of 7.5% and for a tenure of 15 years. By inputting these values in the formula, we get 

EMI = Rs. 23,175 [25,00,000 x 7.5 x (1+7.5)^15]/[(1+7.5)^15-1]

As Rahul recently got a promotion, he feels comfortable paying an EMI amount of Rs. 23,175. Thus, he goes forward with the particular lender and obtains a home loan. 

How To Use Navi’s EMI Calculator

On Navi’s technology-driven platform, you can conveniently use the EMI calculator to compute the monthly installment amount payable for a home loan of Rs. 25 lakh by following these steps:  

• Step 1: Visit Navi’s online website and hover your anchor over the “Home Loan” option on the navigation bar. Then Click on “EMI Calculator.”
• Step 2: Upon getting redirected to the calculator page, use the loan amount slider to select Rs. 25 lakh.
• Step 3: Now, move the tenure and interest rate slider to select a desirable value. 
• Step 4: This calculator will show you the EMI amount instantly. You can also change the values and try different combinations. 

You can use this EMI calculator by downloading the Navi mobile app on Android or iOS.

Also Read: How To Get Rs. 10 Lakh Home Loan: EMI Calculator & Interest Rate

Benefits Of Using Navi’s ₹ 25 Lakh Home Loan EMI Calculator 

It is clear that calculating the EMI before taking a home loan is beneficial for one’s long-term financial life. Let’s take a look at the benefits you can enjoy with Navi’s home loan EMI calculator:

• Build A Repayment Strategy 

The primary benefit of an EMI calculator is that it helps with loan repayment. Upon knowing the amount one has to pay every month, they can organise their expenses and savings in such a manner that repaying the EMI does not become an issue. 

Also Read: How To Use A Home Loan Prepayment Calculator?

• User-Friendly

Upon taking a look at the formula, you can see how difficult it is to manually calculate the EMI. Navi’s EMI calculator resolves that issue by doing the calculations for you free of cost. You can enter any value and get an accurate result instantly. 

• Allows Comparisons 

With the numerous home loan options available, it is difficult to know which one suits you the most. Well, there is no limitation to how many times you can change the values in Navi’s EMI calculator. You can try different combinations of principal amount and tenure and attain the most affordable EMI amount. 

EMI Of ₹ 25 Lakh Home Loan For Various Tenures 

Many borrowers face trouble finding the right balance between loan tenure and EMI. Reducing the tenure could mean that you pay lower interest, as your repayment will be complete sooner. However, opting for a tenure that is too short may make the EMI unaffordable for you. 

So, let’s consider Navi’s interest rate of 6.46% and see how much EMI you will pay on Rs. 25 lakh home loan for different tenures. 

Loan Tenure	EMI Amount	Total Payable Amount
5 years	Rs. 48,869	Rs. 29,32,113
10 years	Rs. 28,336	Rs. 34,00,337
15 years	Rs. 21,723	Rs. 39,10,095
20 years	Rs. 18,581	Rs. 44,59,321
25 years	Rs. 16,818	Rs. 50,45,324

Final Word 

You need to have a clear financial plan to afford a home loan while continuing to live a comfortable life and not falling into a debt trap. Fortunately, an EMI calculator saves a lot of your time by informing you of your monthly repayment obligations. Before applying for a Rs. 25 lakh home loan, make sure that you reap the benefits of an EMI calculator. 

Frequently Asked Questions

1. What happens if I delay paying EMI?

Generally, the inability to pay three consecutive EMIs leads to your lender taking some action. You can incur some penalty charges (1%-2% of your EMI), and your credit score can worsen. Thus, a delay in paying EMI can result in you failing to get a loan in the future. 

2. How does making a down payment affect my home loan EMI?

When you make a down payment, it means that your outstanding loan amount decreases. It also reduces your loan tenure. Thus, as the total payable amount gets lower, what you have to pay monthly also decreases. 

3. How does availing a Rs. 25 lakh home loan at a floating interest rate affect the EMI amount?

When you take a home loan at a floating interest rate, your EMI can change according to the market situation. A floating interest rate changes with the repo rate. Thus, as the payable interest increases or decreases, the EMI amount changes accordingly. 

4. What is home loan pre-EMI?

When a property is under construction, a lender can disburse your loan in stages. In this situation, you pay pre-EMI only on the loan’s interest component and not on its principal amount. However, this pre-EMI period is not included in a loan’s actual tenure. 

5. Will I have to pay the exact EMI to my lender shown by an EMI calculator?  

Sometimes, your lender can offer you a slightly different loan amount or charge another interest rate after negotiations. Thus, the result of an EMI calculator might slightly differ. However, if your lender offers you a loan with the exact values you enter when using the calculator, you will get the same EMI. 

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