EMI for 20 lakhs loan for home differ from one lender to another

There are several types of loans available in India. Among those, home loan is the one that can be taken either to build a home or to purchase a home. Some of the lenders also offer home loans to renovate your old home.

Though the interest rates and repayment modes of home loans vary from one lender to another, they have some unique features and conditions that are mentioned by all the lenders, who sanction these loans. One should mention the purpose of taking loan on the application form clearly. As per the rules and regulation of all the home loan lenders, depending on the income, eligibility and repayment capacity, the borrowers can get the loan amount. As loan for a home comes under the classification of secured loans, the borrowers should submit any one of their properties as a security against the loan amount. Fixed interest rate and floating interest rate are the two popular types of home loan interest rate.

Quite evidently, everyone expects high amount of home loan at a very low interest rate. To fulfill the desires of the borrowers, who want to get home loan at low interest rates, the public sector banks have recently announced interest rates cut of home loans. According to PSU banks, now the borrower can avail up to 5 lakh loan amount at the interest rate of 8.5 percent, where as the 5-20 lakh loan amount borrowers have to pay 9.25 percent interest rate. Moreover, these banks do not collect any such type of processing fee from the borrowers and also provide insurance coverage without taking money.

EMI a.k.a Equated Monthly Instalment is a mode of payment through which the repayment of loan is done in a much smoother and hassle-free manner. The concept of EMI has been chiefly concocted to ensure that the burden of repayment of loan, does not get to the head of the borrower. These days, finance organisations make sure that they offer attractive and easy EMI plans to the prospective borrower, ultimately brightening their future business prospects. However, the borrower is advised to make sure that the EMI plan offered to him in the offered loan (in this case home loan) is on the extreme transparent lines.

EMI for 20 lakhs loan for home differ from one lender to another. Depending on your repayment capacity and monthly income, you can select any one of the repayment modes that are offered by the lender. Most of the home loan borrowers get confusion to select the best EMI mode. To clear their doubts, the users can visit reliable Internet websites for EMI calculation. It helps them to know the total amount of interest rate that they have to pay over the term of the loan.

To find the best EMI deal for 20 lakhs loan for home, you can take the assistance of the Compare loan feature that allows you to compare the interest rates and equated monthly installments of all the home loan lenders at one place. If you follow some tips, the EMI calculation will be easy for you. To calculate EMI for 20 lakh home loan, Just open any of the reliable EMI calculator websites and select the 20 lakh term work sheet. Then, enter the principal loan amount (the amount of loan that you want to take) and rate of interest that is decided by your lender. Immediately, you can see the total amount of EMI and the total amount of interest rate that you have to pay up to end of the loan period.

New EMI Calculation for Home Loans on lower interest rates in India

Nowadays, in the Real Estate sector there is a revolution for mortgage loan. All the news paper and magazine are with full coverage of lower interest rates for home loans, lower EMI on home loans, lower mortgage interest rates etc. But what is the actual situation have to justify.

According to the SBI calculation on fixed 12% interest rate the EMI will be 867.82 now upto Rs. 5 lakh on per lakh for every month. Old EMI was 1,101.09 upto Rs. 5 lakh for per month on every Rs. 1 lakh. It means, your saving is about 233.37 up to Rs. 5 lakh for every month on per lakh.

For the Rs. 5 to 20 lakh new EMI will be 915.87 per month for every Rs. One lakh rather than 1,101.09 old EMI. It means, your saving is Rs. 185.22 for per one lakh amount if you get the home loan for Rs. 20 lakh for the 20 years tenures.

Overall your saving will be Rs. 185 to 233 for per lakh on the home loans for 20 years. It was the calculation on the basis of 12% fixed interest rate by State bank of India.

What is the reality of these loans? For example you borrow a loan amount of Rs. 20 lakh for the 20 years then what will be EMI?

According to the new EMI calculation you have to pay per month about Rs. 17356.4 if all the circumstances don’t change. However, your older calculated EMI was for Rs. 20 lakh per month – Rs. 22021.8.

You can just imagine that if you buy a home on the amount of Rs. 20 lakh then you have to pay total in 20 years Rs. 41,65,5,36. It means just double amount for that Rs. 20 lakh in 20 years.

So, in the Indian context you can imagine who can buy the flats to take loan by banks! It is the revolution of Indian Real Estate sectors and income and investment of Banks.

Another story says that you can borrow whole amount by banks on 0% down payment. Is it crisis or investment? However, the home loans or mortgage loans trends has been not increased as year of 2006-2007.

Total deduction in the percentage of interest rates is 1 to 1.5. The actual interest rates will follow with the monthly EMI on the basis of loan amounts and loan terms.

All the activities is the result of government pressure on banks due to economic crisis for the liquidate the capital in the consumers.