pnb housing
December 7th, 2022

Planning For a Rs 20 Lakh Home Loan? Check Your EMI Here!

Planning For a Rs 20 Lakh Home Loan? Check Your EMI Here!

Summary: Are you planning to take a 20 Lakh Home Loan? Read on for a complete guide on EMI calculation, eligibility criteria, repayment tenure, features, and other information on a 20 Lakh Home Loan.

Buying or building a house is a rather challenging task, with many things needing to be factored in, some of them well in advance. The financial considerations required for building or buying a house are enormous, and also the key point of concern for any aspiring homeowner. A lot of people fall short of the required funds, despite pouring all their savings into buying or renovating a house. 

For such scenarios, Home Loans are perfect, and if you’re looking for a Rs 20 Lakh Home Loan, PNB Housing can help you out with affordable Home Loan interest rates. 

Read on to see how EMIs of a Rs 20 Lakh Home Loan for terms such as 5 years, 10 years, 20 years, etc. work out.

The EMI of a Rs 20 Lakh Home Loan: The Simplest Way to Calculate

To calculate the EMI of a Rs 20 Lakh Home Loan, you need some figures – The Property value, The principal/loan amount required, the repayment term/tenure, and the interest rate. 

Let us understand each component in detail:  

Principal or Loan Amount

It is the total amount you borrow or the loan amount. Generally, the loan amount is equivalent to a certain percentage of property value. Generally, for a property value amounting to less than 30 lakhs the loan amount considered is up to 90%. Hence, to purchase a property (ready-to-move-in house) worth Rs 25 lakh, you need to make a 10% down payment.

However, you may increase the down payment to reduce your loan liabilities. So, if you increase the down payment to 20% (Rs 5 lakh ) of the Home Loan amount, your principal/loan amount would be Rs 20 Lakh.   

Home Loan Eligibility Based on the Value of Property

It is common knowledge that no lender agrees to provide the entire property value as the home loan amount. Here, the Loan to Value ratio (LTV ratio) comes into the picture.

So, what exactly is the LTV ratio? In simple terms, it is the ratio of the maximum loan amount you can get to the market value of the property you want to purchase. Thus, the LTV ratio tells you how much of the property’s cost that your lender is ready to finance. The rest of the cost must be borne by the applicant beforehand.

Naturally, the higher the LTV ratio, the more you will be able to avail of a home loan. Your LTV ratio depends upon both your property’s valuation, whether it is residential or commercial, location, and other factors. Here’s a table that reveals what LTV ratio you are eligible for depending upon the property value:

Property Value Loan Amount
Under INR 30 lakh 90%
Between INR 30 lakh to INR 75 lakh 80%
Above INR 75 lakh 75%

Must Read: What is the Repayment Tenure for Home Loan?

Repayment Term or Tenure

It refers to the years over which you plan to repay the Home Loan. If you borrow a loan in 2022 and wish to repay it before 2032, your Home Loan term will be 10 years. So, your Rs 20 Lakh Home Loan EMI will be effective for 10 years.

Remember, if you opt for an extended loan term, your Rs 20 lakhs Home Loan EMI will be more affordable. Some financial institutions, like PNB Housing Finance, have extended loan tenure up to 30 years, which helps the customer to pay home loan liabilities effectively alongside not negotiating with their household expenses. 

Interest Rate

Interest is a major component in the EMI for a Rs 20 lakh Home Loan. 

Financial Institutions offer the customer varied interest rate which usually depends on your credit score, monthly income, age, loan term, and other factors. 

EMI for a Rs 20 Lakhs Home Loan – A Quick Estimate 

Now that you know the best way to calculate the EMI for a Rs 20 Lakh Home Loan let us discover the approximate EMI for different loan terms. For the sake of simplification, we assume that the rate of interest is 8.5% across all loan terms.

  • Rs 20 Lakh Home Loan EMI for 5 Years Repayment Term – Rs 41,033
  • Rs 20 Lakh Home Loan EMI for 10 Years Repayment Term – Rs 24,797
  • Rs 20 Lakh Home Loan EMI for 15 Years Repayment Term – Rs 19,695
  • Rs 20 Lakh Home Loan EMI for 20 Years Repayment Term – Rs 17,356
  • Rs 20 Lakh Home Loan EMI for 25 Years Repayment Term – Rs 16,105

You can even use PNB Housing’s free Home Loan eligibility calculator to check your eligibility for the Rs 20 Lakh Home Loan and Home Loan EMI calculator to check the EMI. 

The Best Features of a 20 Lakh Home Loan

Applying for a Home Loan is easy in India. You can approach reputed housing finance companies like PNB Housing, check your Home Loan eligibility using an eligibility calculator, prepare the documents required, and apply instantly. 

If you apply for a Home Loan of Rs 25 Lakh with a down payment of 20%, your loan amount becomes Rs 20 Lakh or 80% of your house’s construction or purchase value. 

You can use PNB Housing’s free Home Loan EMI calculator to check your monthly liability. Thanks to the affordable Home Loan interest rates, repaying the EMI of a Rs 20 Lakh Home Loan becomes very easy for any term, such as ten years, twenty years, or thirty years.  

Must Read: Everything You Need To Know About Processing Fees For Home Loan


The EMI on a Rs 20 Lakh Home Loan becomes pretty affordable when you opt for an extended term.

Property Value 25 Lakhs
Downpayment 2.5 Lakhs
Loan Amount 22.5 Lakhs
Interest Rate 8.50%
Tenure 30 Years
EMI ₹ 17,301

(*10% Property Value Must be Downpaid)

We recommend opting for a longer tenure home loan because of Lower monthly outflow. It also helps in increasing the eligibility for the Loan amount. There is always a facility to prepay the home loan at any time during the home loan tenure to reduce liability. 


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