home loan
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Buying a budget-friendly property has become easier now than ever before, thanks to the availability of home loans up to 40 lakh. With a little bit of research, you can end up having a dream home that too without putting a hole in your pocket. But before that, it’s essential to learn about the different home loan strategies that can help you maximize the benefits and ensure that you’re not left with hefty loan EMIs to pay each month.

  1. Determine Your Eligibility

The primary step towards applying for home loan up to 40 lakh is to determine your eligibility. You can visit the lender website or use online eligibility calculators to understand the loan amount you can avail. Here are the primary factors that determine your eligibility:

  • Age: You should be between 21 and 65 years of age to apply for a home loan.
  • Income: Your income is the most crucial factor that determines your eligibility for a home loan. Typically, lenders expect applicants to have a minimum salary of INR 15,000 per month.
  • Credit Score: A good credit score is essential to get a home loan with low-interest rates. Most lenders demand a credit score of at least 750.
  • Employment History: Job stability and employment history have a significant impact on your eligibility for a home loan. Lenders usually prefer borrowers with a stable job and income history.
  1. Research on the Best Housing Loan Options

Before finalizing any lender, it is essential to research and explore various home loan options available. Compare different loans based on their interest rates, loan tenures, processing fees, pre-payment charges, and other terms and conditions. Choose a lender that offers a competitive interest rate and flexible repayment options. Also, explore government-backed schemes like PMAY and the Credit-Linked Subsidy Scheme (CLSS) that can help you save money on your home loan.

  1. Opt for a Longer Loan Tenure

The loan tenure is the period within which you need to repay your home loan. Opting for a longer tenure can be a good strategy to keep your EMI amount low. While a longer loan tenure can result in higher interest payouts, it helps reduce the EMI amount, giving you more financial flexibility each month. You can choose a loan tenure of up to 30 years, depending on your age and eligibility.

Moreover, lenders usually impose prepayment charges if you pay off your loan amount before the tenure ends. To avoid such charges, consider opting for a lender that offers flexible prepayment options without any additional fees.

  1. Use Your Windfall Gains to Prepay

If you receive any windfall gains, such as a bonus or a tax refund, use them to prepay your home loan. Prepaying your loan amount can help reduce your outstanding amount and lower your principal amount, which can further reduce your monthly EMIs. It also reduces the total interest payout, enabling you to save money in the long run.

However, before making any prepayments, check for any prepayment charges that the lender may impose. Ideally, look for a lender that offers an option for prepayment without any additional charges.

  1. Balance Your EMI with a Sizeable Down Payment

A significant down payment can help you reduce your loan amount and, in turn, lower your EMI payments. For a budget-friendly property, try to make a down payment of at least 20% of the property’s value. A larger down payment can help in two ways – it reduces your overall loan amount, and it reduces the chances of your loan application getting rejected. The higher down payment also indicates your strong financial credentials to the lender, increasing the probability of your loan application getting sanctioned.

  1. Look for Low-Interest Rates

Interest rates are one of the most significant factors that determine your loan EMIs. As a home buyer, your aim should be to get the lowest interest rate possible. Your credit score and employment history play a significant role in determining your interest rate. A good credit score can help you negotiate for lower interest rates by demonstrating your creditworthiness. So, maintain an excellent credit score to increase your chances of getting lower interest rates.

  1. Consider a Joint Home Loan

If you have a spouse or family member who is willing to share the loan’s burden, consider a joint home loan. A joint home loan with your spouse or a co-borrower can help you increase the loan amount you can avail and lower the interest rates. It also helps in sharing the financial burden, reducing your individual EMI payments.


In conclusion, a home loan up to 40 lakh can be an excellent option to finance a budget-friendly property. By implementing the right strategies and researching thoroughly, you can maximize the benefits of your home loan and ensure that the loan EMIs don’t burden you financially. Choose a lender that offers flexible repayment options, negotiate for lower interest rates, make adequate down payments, and pre-pay your loan amount whenever possible.

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