EMI on a ₹1 crore Home Loan

A home loan of ₹1,00,00,000 at 8.5% for 20 years has an EMI of ₹86,782 a month. Over the full term you repay ₹2,08,27,758, of which ₹1,08,27,758 is interest.

EMI by interest rate and tenure

Home loan rates depend on the lender, your credit score and the RBI repo rate; most are floating, so the EMI or tenure changes when rates move.

Where your first year's EMIs go

In the first 12 months you pay ₹10,41,388: ₹8,42,365 in interest and only ₹1,99,023 towards the loan. The interest share falls every month as the balance comes down.

Salary you need

Banks keep all your EMIs, including this one, within a share of take-home pay (FOIR), usually 40–60%. With no other loans, a ₹86,782 EMI needs a take-home salary of about ₹1,73,565 a month at a 50% limit, or ₹2,16,956 at 40%. Any other EMIs you pay need extra take-home pay on top: ₹2 for every ₹1 of EMI at a 50% limit.

Down payment

RBI rules let banks lend at most 90% of the property value for loans up to ₹30 lakh, 80% up to ₹75 lakh and 75% above that. So a ₹1 crore loan needs a property worth at least ₹1,33,33,334 (75% loan-to-value), with a down payment of ₹33,33,334 plus stamp duty and registration.

Paying it off sooner

Adding ₹7,232 to every EMI (one extra EMI a year) clears the loan about 3 years 5 months early and saves about ₹21,78,735 in interest. Banks can't charge a prepayment penalty on floating-rate home loans to individuals.

Nearby loan amounts

Try other rates in the EMI calculator

Also see: Home Loan Eligibility Calculator · Loan Prepayment Calculator · How much home loan on a ₹50,000 salary?

Questions

EMIs use the standard reducing-balance formula with monthly rests. Processing fees, insurance and rate changes are not included.