Table of Contents
- Interest rates
- Comparison table of interest rates offered for Rs 40 lakh home loan
- EMI Calculator
- Rs 40 lakh home loan EMIs for 10 year tenure
- Rs 40 lakh home loan EMIs for 20 year tenure
- Rs 40 lakh home loan EMIs for 30 year tenure
- Factors to consider when availing home loans
- Eligibility Criteria
- Documents Required
Interest Rates for Rs 40 Lakh Home Loan
Most lenders offer home loans to applicants at floating interest rates. Even though some lenders also additionally offer home loans at fixed rates, they charge higher interest rates for fixed rate home loans. Many lenders also offer home loans at hybrid/mixed interest rates. Under this, the home loan interest rates remain fixed for the first 2 to 3 years of the loan repayment tenure and floating rate thereafter. Applicants who are availing home loans at higher interest rates can also consider transferring their existing home loans to other lenders using the home loan balance transfer facility at lower interest rates.
Comparison Table of Interest Rates Offered for Rs 40 Lakh Home Loan
| Name of Lender | Up to Rs. 30 Lakh | Above Rs. 30 Lakh to Rs. 75 Lakh | Above Rs. 75 Lakh | |
| Bajaj Housing Finance | 8.50% p.a. onwards | 8.50% p.a. onwards | 8.50% p.a. onwards | Check Eligibility |
| SBI | 8.50%-9.85% p.a. | 8.50%-9.85% p.a. | 8.50%-9.85% p.a. | Check Eligibility |
| HDFC Bank Limited | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards | Check Eligibility |
| LIC Housing Finance | 8.50% - 11.25% p.a. | 8.50% - 10.55% p.a. | 8.50% - 10.75% p.a. | Check Eligibility |
| ICICI Bank | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards | Check Eligibility |
| Kotak Mahindra Bank | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards | Check Eligibility |
| PNB Housing Finance | 8.50% - 14.50% p.a. | 8.50% - 14.50% p.a. | 8.50%-11.45% p.a. | Check Eligibility |
| Punjab National Bank | 8.45% - 10.25% p.a. | 8.40% - 10.15% p.a. | 8.40% - 10.15% p.a. | Check Eligibility |
| Bank of Baroda | 8.40% - 10.65% p.a. | 8.40% - 10.65% p.a. | 8.40% - 10.90% p.a. | Check Eligibility |
| IDFC First Bank | 8.85% p.a. onwards | 8.85% p.a. onwards | 8.85% p.a. onwards | Check Eligibility |
| L&T Finance Limited | 8.65% p.a. onwards | 8.65% p.a. onwards | 8.65% p.a. onwards | Check Eligibility |
| Tata Capital Housing Finance | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards | Check Eligibility |
| Federal Bank | 8.80% p.a. onwards | 8.80% p.a. onwards | 8.80% p.a. onwards | Check Eligibility |
| Axis Bank | 8.75%-13.30% p.a. | 8.75%-13.30% p.a. | 8.75%-9.65% p.a. | Check Eligibility |
| Godrej Housing Finance | 8.55% p.a. onwards | 8.55% p.a. onwards | 8.55% p.a. onwards | Check Eligibility |
Note: Interest rates as of 12th December 2024
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EMI Calculator for Home Loan of up to Rs 40 Lakh
Monthly EMI ₹ 15,622
Total Amount Payble ₹ 5,62,395(Principal + interest)
Principal Amount ₹ 5,00,000
Total Interest Payble ₹ 62,395
Rs 40 Lakh Home Loan EMIs for 10 Year Tenure
| Lender’s name | Interest rate (% p.a.) | EMI |
| SBI | 8.50 – 9.85 | Rs 49,381 – Rs 52,971 |
| HDFC Bank | 8.50 onwards | Rs 49,594 onwards |
| ICICI Bank | 9.40 onwards | Rs 50,131 onwards |
| Bank of Baroda | 8.40 – 10.65 | Rs 49,381 – Rs 54,311 |
| Union Bank of India | 8.30 – 10.90 | Rs 49,167 – Rs 54,874 |
Rs 40 Lakh Home Loan EMIs for 20 Year Tenure
| Lender’s name | Interest rate (% p.a.) | EMI |
| SBI | 8.50 – 9.85 | Rs 34,460 – Rs 38,733 |
| HDFC Bank | 8.50 onwards | Rs 34,713 onwards |
| ICICI Bank | 9.40 onwards | Rs 35,348 onwards |
| Bank of Baroda | 8.40 – 10.65 | Rs 34,460 – Rs 40,339 |
| Union Bank of India | 8.30 – 10.90 | Rs 34,208 – Rs 41,016 |
Rs 40 Lakh Home Loan EMIs for 30 Year Tenure
| Lender’s name | Interest rate (% p.a.) | EMI |
| SBI | 8.50 – 9.85 | Rs 30,474 – Rs 35,251 |
| HDFC Bank | 8.50 onwards | Rs 30,757 onwards |
| ICICI Bank | 9.40 onwards | Rs 31,468 onwards |
| Bank of Baroda | 8.40 – 10.65 | Rs 30,474 – Rs 37,038 |
| Union Bank of India | 8.30 – 10.90 | Rs 30,191 – Rs 37,791 |
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Factors to Consider When Availing Home Loans of Rs 40 Lakh
Loan Repayment Tenure
Many lenders offer home loans for repayment tenures of up to 30 years. They also determine the repayment capacity of the applicants while setting their home loan repayment tenure. Most lenders require the total EMIs of their home loan applicants, including the EMI of their proposed home loan, to be within 50-60% of their net monthly income. Thus, those planning to avail Rs 40 Lakh home loans should use the Home Loan EMI Calculator to find out the optimum EMIs and loan tenures for their home loan based on their repayment capacity while ensuring that their total EMIs remain within 50% of their net monthly income.
Loan-to-value Ratio (LTV Ratio)
Home Loan LTV Ratio is the overall percentage of a property’s value that banks/HFCs finance through their home loans. It is crucial to note that RBI has restricted the LTV ratio for Rs 40 lakh home loan at 80% of the property’s value. Therefore, at least 20% of the property’s value has to be funded by the home loan borrowers from their own fund sources. Borrowers have to use their own fund sources for the down payment of home loans. Lenders usually determine the LTV ratio of their home loan applicants based on various factors such as their credit score, credit profile, repayment capacity, loan amount, market value of the property, etc. Many lenders also offer home loans at lower interest rates to borrowers who opt for lower LTV ratios.
Credit Score
Credit score of 750 and above is usually considered ‘good’ by many lenders and applicants with such credit scores have higher chances of getting their home loan applications approved. Some lenders also offer home loans at lower interest rates to such applicants. For that reason, it is important to review your credit reports before applying for home loans. Doing this will help detect any clerical errors in the credit reports, which are adversely impacting their credit score. Such errors should be reported to the concerned credit bureau and lender. A rectified credit report should report a higher credit score. Once the credit reports show an improvement, the chances of getting your home loan approved will significantly increase.
Home loan applicants with lower or no credit scores can also avail Paisabazaar Step UP Credit Card to improve their credit scores and increase the chances of home loan approval.
Processing fees
Home loan processing fee is a one-time charge that many home loan lenders levy for processing the home loan applications of their prospective borrowers. The processing fee is usually 2% of the total loan amount. Lenders also offer partial or complete waiver of processing fees on home loans during festive seasons/other important occasions.
Prepayment Charges
RBI has directed banks, NBFCs and HFCs to not levy prepayment charges on floating rate home loans. However, lenders are free to decide if they want to charge prepayment fee or waive it off completely on home loans with fixed interest rates.
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Eligibility Criteria for Availing Rs 40 lakh Home Loan
The home loan eligibility for availing home loans may differ from one lender to another. However, some major conditions required for home loan application are as follows:
- Most lenders usually consider resident Indians eligible for home loans however, some may offer NRI home loans as well.
- Most banks/HFCs usually offer home loans to loan applicants who are 18 years or older, whether they are applying for fresh home loans or opting for balance transfer. However, lenders also require the home loan borrowers to repay their loans before they reach the age of 70.
- Lenders offer Rs 40 lakh home loans to both salaried and self-employed individuals.
- Home loan applicants with credit scores of 750 and above have more chances of availing home loans. Many banks and HFCs also offer home loans at lower interest rates to applicants with higher credit scores.
- Existing home loan borrowers can also enhance their home loan eligibility by opting for longer loan tenures or by adding co-borrowers.
Lenders may also consider various other factors such as the monthly income, existing EMIs from other loans, work experience (for salaried) and business continuity (for self-employed), assets, property age, etc., when determining the home loan eligibility of their applicants.
Also Check Home Loan Eligibility Criteria for Top 10 Banks and HFCs
Documents Required for Availing Home Loan of up to Rs 40 Lakh
Documents for availing home loans may differ from one lender to another. However, some major documents required for home loan application are as follows:
- Duly filled application form
- Identity proof
- Age proof
- Income proof (both for salaried and self-employed)
- Proof of employment/business
- Address proof
- Property documents
- Estimated cost of property
Note: List of above-mentioned documents for home loans is non-exhaustive. Banks/NBFCs may ask for additional documents based on their requirements and profile of the loan applicant.