40 Lakh Home Loan - First Attempt Financial Solutions

40 Lakh Home Loan EMI

A 40 lakh home loan can be used in multiple ways. With a proper financial strategy, you will be able to utilise the loan in the best possible way in the future without any hassle. Make sure you take your time to do proper research regarding the scheme you apply for.

A home loan can help you bring your dream of owning a house into reality. No matter whether you are looking forward to constructing your dream house or renovating or extending your existing house, a home loan can provide you with the necessary financial support that will help you fulfil all your property requirements without any hassle.

Additional Info: Looking for 30 Lakh Home Loan? Check EMI & Apply

A 40 lakh home loan can be useful for many reasons. You can either use the entire amount for construction purposes or use the money to buy furniture or even extend a certain portion of your house.

Home loans are offered by several banks and other financial institutes in India to eligible customers based on their credit history, income details, and other details. Home loans are massive amounts that are extremely useful when it comes to your property requirements.

This article closely discusses all the details that you need regarding a 40 lakh home loan if you are intending to apply for one soon.

You can also Apply for 50 Lakh Home Loan

There are several banks and financial institutes that offer home loans of several amounts to eligible customers across the country. Leading banks that offer home loans of up to 40 lakh include the State bank of India, Bank of Baroda, HDFC Bank, Bank of India, to name a few. Based on details such as your monthly income, credit history, financial status, and other details, your 40 lakh home loan EMI is decided by the bank officials during the review procedure after you apply.

Several factors that you need to keep in mind if you intend to apply for a 40 lakh home loan include:

You can select different in your periods to check which one you are comfortable with. Tenure of up to 30 years can be selected by applicants when they apply for a home loan of 40 lakh.
Your credit history and credit score affect your monthly instalments immensely. Make sure you have a credit score of 750 or above when you apply for a 40 lakh home loan.
You can be either an Indian or non-Indian resident when it comes to applying for home loans in India.
The minimum interest rate remains around 7.05% when it comes to home loans. Interest rates vary from one bank to the other.
A processing fee of around 0.5% is applied to customers when they are granted home loans by banks.
If you select a tenure of up to 20 years, your monthly instalment will be around 26,747/- for the lowest interest rate of 7.05%.
If you decide to shift your loan and continue the rest of your scheme under another lender, you can check out the home loan bank transfer schemes to do the same.
Many banks offer pre-payment services at zero cost. You can make the entire payment of the rest of the amount in the middle of your tenure without having to pay prepayment charges.

Additional Info: Also check DDA Housing Scheme

If you are looking forward to applying for a loan of 40 lakh soon, the major factors that you need to keep in mind include:

Make sure you use a 40 lakhs loan EMI calculator in order to calculate your monthly instalments beforehand.
You can try different combinations with multiple durations, principal amount, and interest rates to determine which scheme is the best fit for your affordability.
Different banks offer different interest rates when it comes to home loans in India. When the interest-rate increases, your monthly instalments will also increase along with it.
If you want to decrease your instalment rates, choose a longer tenure and vice versa.
Your credit score will directly affect your 40 lakh home loan EMI rates. Make sure you improve your credit score and maintain a credit score of around 750 or above before you apply for your home loan of any amount.
Most banks and financial institutions prefer younger applicants when it comes to choosing comparatively longer tenures of up to 25 years to 30 years.
The average interest rate for a home loan of 40 lakh remains around 7.90% to 9.30%. Your EMI on a 40 lakh home loan will increase as soon as the interest rate increases as per the bank’s guidelines.

Go through the chart to understand different interest rates and how they get affected by the tenure you select when you apply.

Loan Amount	Tenure	Monthly EMI (Rs.)
40 Lakh	5 years	80,914/-
40 Lakh	10 years	48,320/-
40 Lakh	15 years	37,996/-
40 Lakh	20 years	33,209/-
40 Lakh	25 years	30,608/-
40 Lakh	30 years	29,072/-

These instalment rates have been calculated based on an estimated interest rate of 7.90%. Make sure you check the current interest rate offered by your preferred bank when you apply for a 40 lakh home loan. When the interest rate increases, your monthly amount will increase along with it.

Use a 40 lakhs home loan EMI calculator to find out if you are comfortable with the payable instalment rates or not before you apply for a home loan.

Additional Info: Also check SBI Home Loan EMI Calculator

If you decide to take a home loan of 40 lakh for a tenure of 10 years, your interest rate will affect your monthly instalments immensely. For instance, for the lowest interest rate of 7.05%, your monthly instalments will be around Rs. 46,547/- if you choose a tenure of 10 years.

Your 40 lakh home loan EMI will be on the higher side higher if you choose a shorter tenure. And when you choose a longer tenure, your EMI will automatically decrease.

Rate of Interest p.a.	EMI in Rs
7.70%	Rs. 47,899
7.90%	Rs. 48,320
7.99%	Rs. 48,510
8.05%	Rs. 48,637
8.10%	Rs. 48,743
8.35%	Rs. 49,274
8.45%	Rs. 49,487
9.05%	Rs. 52,688

Additional Info: Also check AnyRoR Gujarat Land Record

Your tenure directly affects your monthly instalment rates immensely. For a shorter tenure of 5 years, your 40 lakh home loan EMI will be around 80,914/- per month for the lowest interest rate of 7.90%.

Additional Info: Looking for 30 Lakh Home Loan? Check EMI & Apply

In order to decrease your instalment rate, you can choose to go for a longer tenure of up to 15 years or 25 years.

In order to determine which scheme suits your affordability the most, you can choose the home loan EMI calculator online. It will give you an exact amount that you will need to pay on a monthly basis during your repayment tenure. Try different combinations to determine whether you are going to apply for the right home loan scheme or not.

Rate of interest p.a.	EMI in Rs
7.70%	Rs. 80,532
7.90%	Rs. 80,914
7.99%	Rs. 81,086
8.05%	Rs. 81,201
8.10%	Rs. 81,297
8.35%	Rs. 81,777
8.45%	Rs. 81,970
9.05%	Rs. 83,131

Home loan eligibility is a subjective factor that differs from one bank to the other based on several matters. However, there are several common points that are taken into consideration by all banks and financial institutes in the country when they review your loan application before granting a home loan.

The age factor remains similar for all the banks and NBFCs in India.

You must be at least 18 years old to apply for a 40 lakh home loan at any bank across the country. Some banks also keep the minimum age of 21 years when it comes to home loans. Go through the eligibility criteria of your preferred bank thoroughly before applying for a loan.
Both salaried and self-employed individuals are eligible to apply for home loans irrespective of the amount in India.
Both Indian and non-Indian residents are eligible to apply for home loans of 40 lakh at banks and financial institutes in the county.
The maximum age to apply for home loans remains around 60 to 70 years depending on the different policies of different banks.
For salaried people, the maximum age remains around 60 years. Whereas, self-employed people can apply for home loans for up to 65-70 years as per most banks’ policies.
The major documents that you need to keep while applying for a home loan in India include your address proof- The electricity bill, water bills, driving licence, other bills as proof of your address; identity proof- voter card, Aadhar card, passport.
You must have a valid PAN card for applying for a home loan as per the policies of banks in India.
Home loan documents required by the banks also include your bank statements for the past 6 months at the very least. Many banks demand bank statements for longer periods depending on their regulations.
For salaried people, proof of their monthly income and payslips are necessary in order to apply for home loans.
Credit score for home loan plays an extremely crucial role in the review process. You must have a credit score of 750 or above to make sure your loan application is approved by your preferred bank. If you have a poor credit score, focus on improving your credit score before applying for home loans.
If you have a poor credit score of around 600 or less, you can consider applying for a home loan with a co-applicant who has a better credit score for a better chance of loan approval.
In order to be eligible to apply for a home loan, you must have a minimum salary of 25,000/- per month, on average, as per the policies of most banks and NBFCs in India.
Self-employed people need to submit proof of their business stability of at least the last 5 years, and their income proof is also required for loan approval.

Leading banks that offer home loans of 40 lakh to customers include Kotak Mahindra Bank, State Bank of India, Axis Bank, ICICI Bank, Union Bank of India, Punjab National Bank, Bank of India, HDFC bank, and various others. Go through the chart to compare and analyse the maximum and minimum interest rates to determine which scheme suits your affordability the most.

Bank Names	Maximum Interest Rates	Minimum Interest Rates
SBI	8.05%	9.05%
Punjab National Bank	7.90%	9.35%
Kotak Mahindra Bank	7.99%	8.50%
ICICI Bank	8.10%	8.95%
Bank of India	7.80%	9.65%
Union Bank of India	7.90%	9.85%
HDFC Bank	8.10%	9.00%

These are some of the leading banks in India that offer 40 lakh home loan to eligible customers. Make sure you compare and analyse different rates offered by all the contemporary banks before making the final call.

Additional Info: Also check Sukanya Samriddhi Yojana