12 Lakh Home Loan EMI With Calculator And Interest Rates 2025

Embarking to own a home is a significant step, and understanding the financial implications is crucial. If you're considering a '12 lakh home loan EMI for 20 years, it offers an appealing balance of reasonable monthly payments of just ₹10,338. This guide is tailored to help you navigate the intricacies of a ₹12 lakh home loan, from interest rates to calculation methods, ensuring you have all the information you need to make an informed decision. Dive in to unravel the essentials of effectively securing and managing your home loan.

₹12  Lakh Home Loan EMI Details

The home loan EMI for 12 lakhs home loan will change based on factors like the interest rate, loan tenure, and other variables. Nonetheless, you can leverage an EMI calculator to obtain an approximation of your monthly repayment amounts. The subsequent table illustrates an EMI computation example for a 12 lakh home loan, assuming an 8% interest rate and loan tenure of 20 years:

Tenure	Monthly EMI
5 Years	₹24,562
10 Years	₹14,814
15 Years	₹11,747
20 Years	₹10,338
25 Years	₹9,582
30 Years	₹9,142

How to Calculate ₹12 Lakh Home Loan EMI?

To calculate 12 lakh home loan EMI, use the following formula:

EMI = [P x R x (1+R)^N] / [(1+R)^N-1]

Where:

• P = Loan amount
• R = Interest rate per month
• N = Loan tenure in months

Example:

Suppose you have taken a home loan of  Rs. 12 lakh at an annual interest rate of 8.4% for 20 years.

Calculate the monthly interest rate (R):

Monthly Interest Rate = Annual Interest Rate / 12

R = 8.40% / 12 =0.007

Calculate the loan tenure in months (N):

Loan Tenure in Months = Loan Tenure in Years x 12

N = 20 years x 12 = 240 months

Plug the values into the EMI formula:

EMI = [12,00,000 x 0.007 x (1+0.007)^240] / [(1+0.007)^240-1]

Calculate the EMI using a calculator or spreadsheet:

EMI = [12,00,000 x 0.007 x 5.33424468143] / 4.33424468143

EMI = 10338.0539442 (approx.)

So, the Equated Monthly Installment (EMI) for a home loan of Rs. 12 lakh, with an annual interest rate of 8.40% and a tenure of 20 years, would be approximately Rs. 10338.05. This amount is payable every month until the loan is fully repaid.

₹12 Lakh Home Loan EMI Calculator

The 12 Lakh NoBroker Home Loan EMI Calculator offers the same simplicity and convenience for those considering a higher loan amount. Whether buying a bigger home or refinancing an existing property, you can input your desired loan amount of ₹12 Lakh, select your loan tenure and interest rate, and instantly calculate your EMI. This 12 lakh home loan EMI allows you to adjust the parameters to match your financial situation, making it easier to understand the impact of different loan amounts on your monthly budget. With clear and precise calculations, planning your home loan with NoBroker is both easy and efficient.

Eligibility Criteria for a ₹12 Lakh Home Loan

Securing a home loan of 12 lakhs to fulfil your homeownership dream is a significant financial milestone. Lenders establish specific eligibility criteria and documentation prerequisites to ensure borrowers can responsibly manage their loan repayments.

Eligibility for a ₹12 lakh home loan depends on various factors. Some of the factors are as follows:

• Age: Applicants must be between 18 and 65 years old. This age range ensures that the borrower is legally eligible to take out a loan and can reasonably repay it within the loan term, with a working career still ahead or stability to cover repayments until the age limit.
• Income: A sufficient and stable monthly income is required. This helps lenders assess the borrower’s ability to meet monthly repayment obligations. Stable income levels also ensure that the borrower has the financial security to handle the loan payments throughout the repayment period.
• Employment Stability: A minimum of 2 years of employment in the current job or running a business is typically required. This criterion assures lenders that the applicant has a consistent income source, which is essential for timely loan repayment and reduces the risk of default.
• Credit Score: A good credit score of 650 and above is generally preferred. This score reflects the borrower’s past financial behaviour, indicating whether they will likely repay debts on time. A higher credit score typically results in better loan terms and interest rates.
• Loan Amount and Property Value: Lenders typically offer a loan amount that covers 80-90% of the property’s market value. The borrower must cover the remaining 10-20% as a down payment. This ensures the borrower has a stake in the property and reduces the lender’s risk by avoiding over-financing.
• Existing Liabilities: Lenders prefer borrowers with low existing debt obligations. Fewer liabilities (such as other loans or credit card debt) mean the borrower has a higher repayment capacity and is less likely to default, making the loan application more favourable.
• Property Location and Type: The property should be in an approved location and meet the lender’s criteria regarding property types. Lenders generally prefer properties in urban areas or well-established residential locations with clear legal titles and no pending disputes, ensuring the property is valuable and marketable.
• Co-Applicants: Including co-applicants can enhance eligibility. Suppose the co-applicant has a stable income or a good credit score. In that case, it increases the overall strength of the loan application, boosting the chances of approval and potentially allowing for a higher loan amount.
• Documentation: Complete and accurate submission of required documents is crucial for loan approval. These documents typically include proof of identity, address, income, employment, and property details. Proper documentation helps verify the borrower’s financial stability and ownership of the property, ensuring transparency in the loan process.

Documents Required for a 12 Lakh Home Loan

The documentation process is a critical component of your home loan application. Furnishing precise and complete documents is imperative for streamlining the approval procedure. Below is a compilation of the commonly required documents:

• Proof of Identity: Valid government-issued identification documents such as a passport, Aadhaar card, PAN card, or driver's license.
• Address Verification: Documents substantiating your residential address, like electricity bills, telephone bills, or rental agreements.
• Income Documentation: Papers on your income are pivotal in assessing your repayment capability. These may encompass salary slips from the past 3-6 months, income tax returns (ITR) for the past 2-3 years, and Form 16 issued by your employer.
• Employment Verification: Documents validating your employment status, including an employment letter or offer letter from your current employer, along with income details.
• Bank Statements: Bank statements from the preceding 6 months, displaying your financial transactions and income sources.
• Property Records: If you've selected a property, you must provide pertinent property documents such as the sale agreement, title deed, and property tax receipts.
• Photographs: Passport-sized photographs for official purposes.
• Loan Application Form: The application form supplied by the lender is meticulously completed and signed.
• Investment Documentation (if applicable): Papers concerning your investments, such as fixed deposits, stocks, or mutual funds, demonstrating additional financial stability.

Please note that specific document requisites may differ slightly based on the lender and your employment circumstances. Some lenders may impose additional conditions, particularly for self-employed individuals or those with diverse income sources.

₹12 Lakh Home Loan EMI for 5 Years 

Wondering about your monthly EMI for a ₹12 lakh home loan with a 5-year repayment period at an 8.4% annual interest rate? Understanding the manual calculation process can be enlightening. The formula for manual EMI calculation is:

EMI = (P x R x (1+R)^N) / ((1+R)^N - 1)

Here, P represents the principal amount (₹12,00,000), R is the monthly interest rate (8.4% divided by 12 months, or 0.007 when converted to a decimal), and N is the total number of monthly instalments (5 years, or 60 months).

Using these values:

EMI = (₹12,00,000 x 0.007 x (1 + 0.007)^60) / ((1 + 0.007)^60 - 1)

Your EMI for a ₹12 lakh home loan with a 5-year tenure at an 8.4% annual interest rate would be approximately ₹24,562. 

Tenure	5 years
Loan Amount	₹12,00,000
Rate of Interest	8.4%
EMI	24,562
Total Interest Amount	2,73,723
Total Repayment Amount	14,73,723

₹12 Lakh Home Loan EMI for 10 Years 

Here's how to manually calculate your EMI if you're considering a ₹12 lakh home loan with a 10-year repayment period and an 8.4% annual interest rate.

Using the formula:

EMI = (P x R x (1+R)^N) / ((1+R)^N - 1)

For this scenario, P is the principal amount (₹12,00,000), R is the monthly interest rate (8.4% divided by 12 months, or 0.007 when converted to a decimal), and N is the total number of monthly instalments (10 years, or 120 months).

Plugging in these values:

EMI = (₹12,00,000 x 0.007 x (1 + 0.007)^120) / ((1 + 0.007)^120 - 1)

Your EMI for a ₹12 lakh home loan with a 10-year tenure at an 8.4% annual interest rate would be approximately ₹14,814. 

Tenure	10 years
Loan Amount	₹12,00,000
Rate of Interest	8.4%
EMI	14,814
Total Interest Amount	5,77,702
Total Repayment Amount	17,77,702

₹12 Lakh Home Loan EMI for 15 Years

If you're planning for a ₹12 lakh home loan with a 15-year repayment period and an 8.4% annual interest rate, let's manually calculate your EMI.

Using the formula:

EMI = (P x R x (1+R)^N) / ((1+R)^N - 1)

In this case, P is the principal amount (₹12,00,000), R is the monthly interest rate (8.4% divided by 12 months, or 0.007 when converted to a decimal), and N is the total number of monthly instalments (15 years, or 180 months).

Plugging in these values:

EMI = (₹12,00,000 x 0.007 x (1 + 0.007)^180) / ((1 + 0.007)^180 - 1)

Your EMI for a ₹12 lakh home loan with a 15-year tenure at an 8.4% annual interest rate would be approximately ₹11,747. 

Tenure	15 years
Loan Amount	₹12,00,000
Rate of Interest	8.4%
EMI	₹11,747
Total Interest Amount	₹ 9,14,395
Total Repayment Amount	₹ 21,14,395

₹12 Lakh Home Loan EMI for 20 Years  

Contemplating a ₹12 lakh home loan with a 20-year repayment period at an 8.4% annual interest rate? Let's manually calculate your EMI using the formula:

EMI = (P x R x (1+R)^N) / ((1+R)^N - 1)

Here, P represents the principal amount (₹12,00,000), R is the monthly interest rate (8.4% divided by 12 months, or 0.007 when converted to a decimal), and N is the total number of monthly instalments (20 years, or 240 months).

Using these values:

EMI = (₹12,00,000 x 0.007 x (1 + 0.007)^240) / ((1 + 0.007)^240 - 1)

Your EMI for 12 lakh home loan with a 20-year tenure at an 8.4% annual interest rate would be approximately ₹10,338. 

Tenure	20 years
Loan Amount	₹12,00,000
Rate of Interest	8.4%
EMI	₹10,338
Total Interest Amount	₹12,81,133
Total Repayment Amount	₹24,81,133

₹12 Lakh Home Loan EMI for 25 Years

Contemplating a ₹12 lakh home loan with a 25-year repayment period at an 8.4% annual interest rate? Let's manually calculate your EMI using the formula:

EMI = (P x R x (1+R)^N) / ((1+R)^N - 1)

Here, P represents the principal amount (₹12,00,000), R is the monthly interest rate (8.4% divided by 12 months, or 00.0070 when converted to a decimal), and N is the total number of monthly instalments (25 years, or 300 months).

Using these values:

EMI = (₹12,00,000 x 00.0070 x (1 + 00.0070)^300) / ((1 + 00.0070)^300 - 1)

Your ₹12 lakh home loan EMI for 25 years at an 8.4% annual interest rate would be approximately ₹9,582.

Tenure	25 years
Loan Amount	₹12,00,000
Rate of Interest	8.4%
EMI	9,582
Total Interest Amount	16,74,598
Total Repayment Amount	28,74,598

₹12 Lakh Home Loan EMI for 30 Years

Contemplating a ₹12 lakh home loan with a 30-year repayment period at an 8.4% annual interest rate? Let's manually calculate your EMI using the formula:

EMI = (P x R x (1+R)^N) / ((1+R)^N - 1)

Here, P represents the principal amount (₹12,00,000), R is the monthly interest rate (8.4% divided by 12 months, or 00.0070 when converted to a decimal), and N is the total number of monthly instalments (30 years, or 360 months).

Using these values:

EMI = (₹12,00,000 x 00.0070 x (1 + 00.0070)^360) / ((1 + 00.0070)^360 - 1)

Your ₹12 lakh home loan EMI for 30 years at an 8.4% annual interest rate would be approximately ₹9,142.

Tenure	30 years
Loan Amount	₹12,00,000
Rate of Interest	8.4%
EMI	9,142
Total Interest Amount	20,91,139
Total Repayment Amount	32,91,139

12 Lakhs Home Loan Amortisation

A ₹12 lakh home loan amortisation breaks down the monthly repayment into principal and interest components over the loan tenure. It helps borrowers plan their finances effectively by understanding how each EMI reduces the loan balance. This structured approach ensures systematic debt repayment, enhancing financial stability.

Here's an amortisation table for the first year, assuming an 8.4% interest rate and 1-year tenure for (₹12 lakhs:

Year	Opening Balance	EMI	Interest paid yearly	Principal paid yearly	Closing Balance
1	12,00,000	1,09,705	1,00,449	9,256	11,90,744
2	11,90,744	1,09,705	99,641	10,064	11,80,681
3	11,80,681	1,09,705	98,762	10,942	11,69,738
4	11,69,738	1,09,705	97,807	11,898	11,57,841
5	11,57,841	1,09,705	96,768	12,937	11,44,904
6	11,44,904	1,09,705	95,639	14,066	11,30,838
7	11,30,838	1,09,705	94,410	15,294	11,15,544
8	11,15,544	1,09,705	93,075	16,629	10,98,914
9	10,98,914	1,09,705	91,623	18,081	10,80,833
10	10,80,833	1,09,705	90,044	19,660	10,61,173
11	10,61,173	1,09,705	88,328	21,377	10,39,796
12	10,39,796	1,09,705	86,462	23,243	10,16,553
13	10,16,553	1,09,705	84,432	25,272	9,91,281
14	9,91,281	1,09,705	82,226	27,479	9,63,802
15	9,63,802	1,09,705	79,826	29,878	9,33,923
16	9,33,923	1,09,705	77,218	32,487	9,01,437
17	9,01,437	1,09,705	74,381	35,323	8,66,113
18	8,66,113	1,09,705	71,297	38,407	8,27,706
19	8,27,706	1,09,705	67,944	41,761	7,85,945
20	7,85,945	1,09,705	64,298	45,407	7,40,538
21	7,40,538	1,09,705	60,333	49,372	6,91,166
22	6,91,166	1,09,705	56,022	53,682	6,37,484
23	6,37,484	1,09,705	51,335	58,369	5,79,115
24	5,79,115	1,09,705	46,239	63,465	5,15,650
25	5,15,650	1,09,705	40,698	69,007	4,46,643
26	4,46,643	1,09,705	34,673	75,032	3,71,611
27	3,71,611	1,09,705	28,122	81,583	2,90,028
28	2,90,028	1,09,705	20,999	88,706	2,01,323
29	2,01,323	1,09,705	13,254	96,451	1,04,872
30	1,04,872	1,09,705	4,833	1,04,872	0

Comparison of Interest Rate & Processing Fee for ₹12 Lakh Home Loans

Comparing interest rates and processing fees is crucial to ensure affordability and savings while choosing a ₹12 lakh home loan. This section explores various lenders, highlighting their interest rates, associated costs, and how they impact the overall loan value. Make informed decisions to optimize your home financing journey effectively.

Bank	Rate of interest	Processing Fee
State Bank of India (SBI)	Starting at 8.50%	The processing fee for an SBI home loan is 0.35% of the loan amount plus applicable GST, with a minimum of ₹2000 and a maximum of ₹10000, both plus applicable GST.
HDFC Bank	Starting from 8.75*%	HDFC Bank charges a processing fee of up to 2% of the loan amount plus applicable taxes
ICICI Bank	Starting from 8.75%	2% of the loan amount
Axis Bank	Starting from 8.75%	1% of the loan amount
Canara Bank	Starting at 8.40 %	0.50%, with a minimum of ₹1500 and a maximum of ₹10000
Bank of Baroda	Starting from 8.40%	0.50% of the loan amount for loans up to ₹50 lakh, with a minimum fee of ₹8,500 and a maximum of ₹15000. For loans above ₹50 lakh, the fee is 0.25% of the loan amount, with a minimum of ₹8,500 and a maximum of ₹25000
Kotak Mahindra Bank	Starting from 8.75%	0.5% processing fees for salaried individuals and 1% for self-employed applicants
IDFC First Bank	Starting from 8.85 %	The processing fee for an IDFC First Bank home loan is up to 3% of the loan amount

Interest Rates and EMI on ₹12 Lakh Home Loan Across Different Banks 

When considering a ₹12 lakh home loan, understanding interest rates and Equated Monthly Installments (EMIs) across different banks is crucial. This section provides a detailed comparison of interest rates, loan tenure options, and corresponding EMIs to help borrowers make informed decisions. Discover how slight rate variations impact affordability and overall repayment costs.

Here, add the interest rates column only for 15 years (in reference blog table is for 30 years but you will add here for 15 years)

Bank	Rate of interest	EMI for 5 Years	EMI for 10 Years	EMI for 15 Years
State Bank of India (SBI)	Starting at 8.50%	₹ 24,620	₹ 14,878	₹ 11,817
HDFC Bank	Starting from 8.75*%	₹ 24,765	₹ 15,039	₹ 11,993
ICICI Bank	Starting from 8.75%	₹ 24,765	₹ 15,039	₹ 11,993
Axis Bank	Starting from 8.75%	₹ 24,765	₹ 15,039	₹ 11,993
Canara Bank	Starting at 8.40 %	₹ 24,562	₹ 14,814	₹ 11,747
Bank of Baroda	Starting from 8.40%	₹ 24,562	₹ 14,814	₹ 11,747
Kotak Mahindra Bank	Starting from 8.75%	₹ 24,765	₹ 15,039	₹ 11,993
IDFC First Bank	Starting from 8.85 %	₹ 24,823	₹ 15,104	₹ 12,064

Things to Keep in Mind While Applying for ₹12 Lakh Home Loan

Entering the world of home financing can be a maze. When considering a home loan of 12 lakh, certain key factors are essential for a successful application and smooth repayment.

• Credit Score: Your credit score reflects your creditworthiness. A higher score indicates a history of timely payments and good credit management. Lenders prefer applicants with a good credit score as it reduces their risk, potentially offering better interest rates and terms.
• Eligibility: Before applying, check the lender's eligibility criteria, which often include age, employment status, and income. Meeting these ensures a smoother application process and reduces the chances of rejection.
• Ability to Repay: Lenders assess your monthly income, ongoing liabilities, and expenses to determine if you can comfortably repay the loan. It's also essential to personally gauge your repayment capacity to avoid financial strains in the future.
• EMI: Equated Monthly instalments (EMI) is the amount you pay back monthly. Use tools like the EMI calculator to understand your monthly outgo, helping you to budget and plan other expenses efficiently.
• Overall Cost Calculations: In addition to the principal loan amount, consider other costs such as processing fees, insurance, and other ancillary charges. This will give a clearer picture of the total cost of the loan over its tenure.

Do’s and Don’ts 

Do's	Don'ts
Do check your credit score regularly.	Don't apply with multiple lenders simultaneously.
Do ensure all documentation is in order.	Don't hide or provide incorrect information.
Do understand all terms and conditions thoroughly.	Don't skip reading the fine print.
Do maintain a stable employment and income source.	Don't take on multiple large debts at the same time.
Do review overall costs, not just the principal.	Don't forget to factor in ancillary charges.

Securing a home is often a milestone in one's life, and understanding the financial implications is paramount. The '12 lakh home loan EMI for 10 years is a commonly sought tenure, offering a balanced approach between manageable monthly payments and the total interest amount over the loan's lifespan. With the knowledge you've gained from this guide, you're better equipped to make an informed decision on your home loan.

Embrace Your Dream Home with NoBroker Home Loan Services

Navigating the landscape of home loans can be intricate. But why venture alone when NoBroker's Home Loan Services are at your disposal? Our team of experts is committed to simplifying the process for you. From finding the best interest rates to guiding you through documentation, we are your trusted partner in this journey. Don't let the intricacies of '12 lakh home loan EMI' calculations daunt you. With NoBroker, every step towards your dream home becomes a stride with confidence. Dive in and experience seamless home financing today!

Disclaimer: The interest rates and calculations mentioned in this guide are for illustrative purposes only. Actual rates and terms may vary depending on the lender and prevailing market conditions.