Standard reducing-balance EMI formula, the same method banks use. Actual offers add processing fees, insurance, and rate spreads based on your credit profile - treat this as the baseline instalment for comparing loans, not a sanctioned quote.
5 lakh EMI across rates and tenures
Monthly EMI for a ₹5 lakh loan at each combination. Longer tenure lowers the EMI but raises total interest sharply.
| Tenure | 8% | 8.5% | 9% | 9.5% | 10% |
|---|---|---|---|---|---|
| 10 years | ₹6,066 | ₹6,199 | ₹6,334 | ₹6,470 | ₹6,608 |
| 15 years | ₹4,778 | ₹4,924 | ₹5,071 | ₹5,221 | ₹5,373 |
| 20 years | ₹4,182 | ₹4,339 | ₹4,499 | ₹4,661 | ₹4,825 |
| 25 years | ₹3,859 | ₹4,026 | ₹4,196 | ₹4,368 | ₹4,544 |
| 30 years | ₹3,669 | ₹3,845 | ₹4,023 | ₹4,204 | ₹4,388 |
How the balance falls (8.5%, 20 years)
| After year | Interest paid that year | Principal paid that year | Outstanding balance |
|---|---|---|---|
| 1 | ₹42,118 | ₹9,950 | ₹4,90,050 |
| 5 | ₹38,106 | ₹13,962 | ₹4,40,645 |
| 10 | ₹30,744 | ₹21,324 | ₹3,49,991 |
| 15 | ₹19,499 | ₹32,569 | ₹2,11,536 |
| 20 | ₹2,326 | ₹49,742 | ₹73 |
Frequently asked questions
At 8.5% interest for 20 years, the EMI on a ₹5 lakh home loan is ₹4,339 per month. Over the full tenure you pay ₹5,41,388 in interest, for a total outlay of ₹10,41,388.
₹6,199 per month at 8.5%. The shorter tenure raises the monthly outgo but cuts total interest to ₹2,43,914 - versus ₹5,41,388 over 20 years.
Banks typically cap total EMIs at 40–50% of net monthly income. At the ₹4,339 EMI (8.5%, 20 years), that implies a net monthly income of roughly ₹9,642 or more, assuming no other loans. Exact eligibility varies by lender and credit profile.
At 8.5% over 20 years: ₹5,41,388 - about 108% of the amount borrowed. Dropping to 15 years cuts interest to ₹3,86,266.
Other loan amounts
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Reviewed by Raja Jahangir · Last reviewed: August 2026