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Home loan EMI for ₹20 lakh, ₹40 lakh and ₹50 lakh
A ₹20 lakh loan at 8.5% for 20 years costs ₹17,356 a month. At ₹40 lakh it is ₹34,713, and at ₹50 lakh it is ₹43,391. The tables below show what each loan costs in total and how much take-home salary banks will want to see.
EMI for a 20-year loan at 8.5%
| Loan amount | Monthly EMI | Total interest | Total you repay |
|---|---|---|---|
| ₹20 lakh | ₹17,356 | ₹21,65,552 | ₹41,65,552 |
| ₹40 lakh | ₹34,713 | ₹43,31,103 | ₹83,31,103 |
| ₹50 lakh | ₹43,391 | ₹54,13,879 | ₹1,04,13,879 |
On a 20-year loan you repay a little more than double what you borrowed. A ₹50 lakh loan crosses ₹1 crore in total repayments.
15 vs 20 vs 25 years
| Loan | 15 years | 20 years | 25 years |
|---|---|---|---|
| ₹20 lakh | ₹19,695 | ₹17,356 | ₹16,105 |
| ₹40 lakh | ₹39,390 | ₹34,713 | ₹32,209 |
| ₹50 lakh | ₹49,237 | ₹43,391 | ₹40,261 |
Going from 20 to 25 years on a ₹50 lakh loan lowers the EMI by about ₹3,100 a month, but total interest rises from ₹54.1 lakh to ₹70.8 lakh. That is ₹16.6 lakh extra for a small monthly saving.
How much salary do you need?
Most banks allow EMIs of up to 50% of your take-home pay, and a safer target is 40%. For a 20-year loan with no other EMIs running:
| Loan | EMI | Minimum take-home (50%) | Comfortable take-home (40%) |
|---|---|---|---|
| ₹20 lakh | ₹17,356 | ₹34,713 | ₹43,391 |
| ₹40 lakh | ₹34,713 | ₹69,426 | ₹86,782 |
| ₹50 lakh | ₹43,391 | ₹86,782 | ₹1,08,478 |
If you already pay a car loan or personal loan EMI, subtract it first. Banks count all your EMIs together.
Ways to make the loan cheaper
- Pay a larger down payment. Every ₹1 lakh less borrowed on a 20-year loan saves about ₹1.08 lakh in interest.
- Choose the shortest tenure you can afford comfortably.
- Prepay with bonuses, especially in the first five years, when most of each EMI goes to interest.
- Compare at least three banks. A 0.5% lower rate on ₹50 lakh saves roughly ₹3.8 lakh over 20 years.
Check the EMI for your exact loan amount
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