EMI on a ₹20 lakh Home Loan

A home loan of ₹20,00,000 at 8.5% for 20 years has an EMI of ₹17,356 a month. Over the full term you repay ₹41,65,552, of which ₹21,65,552 is interest.

EMI at 8.5% for 20 years
₹17,356

Total interest ₹21,65,552 · Total repaid ₹41,65,552

EMI by interest rate and tenure

Rate10 yrs15 yrs20 yrs25 yrs30 yrs
7.5%₹23,740₹18,540₹16,112₹14,780₹13,984
8%₹24,266₹19,113₹16,729₹15,436₹14,675
8.5%₹24,797₹19,695₹17,356₹16,105₹15,378
9%₹25,335₹20,285₹17,995₹16,784₹16,092
9.5%₹25,880₹20,884₹18,643₹17,474₹16,817
10%₹26,430₹21,492₹19,300₹18,174₹17,551

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 ₹2,08,278: ₹1,68,473 in interest and only ₹39,805 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 ₹17,356 EMI needs a take-home salary of about ₹34,713 a month at a 50% limit, or ₹43,391 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 ₹20 lakh loan needs a property worth at least ₹22,22,223 (90% loan-to-value), with a down payment of ₹2,22,223 plus stamp duty and registration.

Paying it off sooner

Adding ₹1,446 to every EMI (one extra EMI a year) clears the loan about 3 years 5 months early and saves about ₹4,35,747 in interest. Banks can't charge a prepayment penalty on floating-rate home loans to individuals.

Nearby loan amounts

LoanEMI (8.5%, 20 yrs)Total interest
₹10 lakh₹8,678₹10,82,776
₹15 lakh₹13,017₹16,24,164
₹20 lakh₹17,356₹21,65,552
₹25 lakh₹21,696₹27,06,939
₹30 lakh₹26,035₹32,48,327

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

What is the EMI on a ₹20 lakh home loan?

₹17,356 a month at 8.5% for 20 years. At 8% it is ₹16,729, and over 30 years at 8.5% it is ₹15,378.

What salary do I need for a ₹20 lakh home loan?

Banks usually keep all your EMIs within 40–60% of take-home pay. At a 50% limit, a ₹17,356 EMI needs a take-home salary of about ₹34,713 a month with no other loans; at 40%, about ₹43,391.

How much interest will I pay on a ₹20 lakh home loan?

₹21,65,552 over 20 years at 8.5%, so you repay ₹41,65,552 in all. Paying one extra EMI a year cuts the interest by about ₹4,35,747.

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