For most, purchasing a home is a dream come true. We all wish to have our own space with our own personalisation of aesthetic decor to make it our own. That is what we all wish. Suppose you choose to avail a loan to purchase a house that you are going to make into a home through love and work, your loan is Rs 50 lakh for 30 years. Think of the Rs 20 lakh and 5 years that you can save on this loan – that is a good amount of savings that you’d surely like to pursue. Let’s see the details below to know how you can do this.
Home loan conditions
Here, we are discussing about Rs 50 lakh home loan. The interest rate will be 9.50 per cent, and the loan duration is for 30 years.
What will be EMI on Rs 50 lakh loan for 30 years?
The estimated monthly instalment (EMI) on a 50 lakh loan will be Rs 42,043.
What will be total interest on Rs 50 lakh loan?
On this loan, the total interest will be Rs 1,01,35,376, considering a 9.5 per cent interest rate.
What will be total repayment amount of Rs 50 lakh loan?
On a Rs 50 lakh loan, the total repayment amount will be Rs 1,51,35,376.
Impact of Loan Tenure: Long vs Short
When it comes to house loans, everyone prefers longer tenures and reduced EMIs to be in their comfort zone. But a small change to your repayment schedule can amount to a huge amount of money and time saved.
Numbers Speak: Comparing 30-year vs 25-year tenure
In a 30-year tenure, the monthly EMI will be approximately Rs 42,043, and the total interest paid over the period will be around Rs 1,01,35,376. Plus, your total repayment amount on a Rs 50 lakh loan is Rs 1,51,35,376. Now, if you reduce the tenure to 25 years, the EMI increases to Rs 43,685 (just Rs 1,642 more). The total interest to be paid also drops to approximately Rs 81,05,450.
Why choose a shorter tenure?
- Shorter tenures lead to reduced overall interest payments.
- Paying off the loan early gives financial freedom sooner.
- Enables individuals to channel funds into other investments earlier.
What will be your EMI on Rs 50 lakh loan for 25 years?
On a Rs 50 lakh loan for 25 years at a 9.50 per cent interest rate, the estimated monthly EMI amount will be Rs 43,68.
What will be your total interest on Rs 50 lakh loan in 25 years?
The estimated total interest in 25 years will be Rs 81,05,450 on a Rs 50 lakh loan.
What will be your total repayment amount on Rs 50 lakh loan in 25 years?
The total estimated repayment amount will be Rs 1,31,05,450.
How much money can you expect to save?
The estimated amount saved because of an increase in EMI will be approximately Rs 20,29,926. On the other hand, the time saved will be 5 years.
Also Read: SIP Calculation: Rs 20,000/month investment, how quickly can you generate over Rs 5 crore corpus? See calculations
Diclaimer: For Information Purposes Only. Calculations and Data Provided are Generic in Nature and May Vary Based on Actual Conditions