EMI on a ₹40 lakh Home Loan

A home loan of ₹40,00,000 at 8.5% for 20 years has an EMI of ₹34,713 a month. Over the full term you repay ₹83,31,103, of which ₹43,31,103 is interest.

EMI at 8.5% for 20 years
₹34,713

Total interest ₹43,31,103 · Total repaid ₹83,31,103

EMI by interest rate and tenure

Rate10 yrs15 yrs20 yrs25 yrs30 yrs
7.5%₹47,481₹37,080₹32,224₹29,560₹27,969
8%₹48,531₹38,226₹33,458₹30,873₹29,351
8.5%₹49,594₹39,390₹34,713₹32,209₹30,757
9%₹50,670₹40,571₹35,989₹33,568₹32,185
9.5%₹51,759₹41,769₹37,285₹34,948₹33,634
10%₹52,860₹42,984₹38,601₹36,348₹35,103

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 ₹4,16,555: ₹3,36,946 in interest and only ₹79,609 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 ₹34,713 EMI needs a take-home salary of about ₹69,426 a month at a 50% limit, or ₹86,782 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 ₹40 lakh loan needs a property worth at least ₹50,00,000 (80% loan-to-value), with a down payment of ₹10,00,000 plus stamp duty and registration.

Paying it off sooner

Adding ₹2,893 to every EMI (one extra EMI a year) clears the loan about 3 years 5 months early and saves about ₹8,71,494 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
₹30 lakh₹26,035₹32,48,327
₹35 lakh₹30,374₹37,89,715
₹40 lakh₹34,713₹43,31,103
₹45 lakh₹39,052₹48,72,491
₹50 lakh₹43,391₹54,13,879

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 ₹40 lakh home loan?

₹34,713 a month at 8.5% for 20 years. At 8% it is ₹33,458, and over 30 years at 8.5% it is ₹30,757.

What salary do I need for a ₹40 lakh home loan?

Banks usually keep all your EMIs within 40–60% of take-home pay. At a 50% limit, a ₹34,713 EMI needs a take-home salary of about ₹69,426 a month with no other loans; at 40%, about ₹86,782.

How much interest will I pay on a ₹40 lakh home loan?

₹43,31,103 over 20 years at 8.5%, so you repay ₹83,31,103 in all. Paying one extra EMI a year cuts the interest by about ₹8,71,494.

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