What is the EMI on a ₹30 lakh home loan?

At 8.5% over 20 years, a ₹30,00,000 home loan costs ₹26,035 a month. Over the full term you repay ₹62,48,400, of which ₹32,48,400 is interest. Over 30 years the EMI falls to ₹23,067 and the interest rises to ₹53,04,120; over 15 years the EMI is ₹29,542. The rate is an example: use your own quote.

The EMI on ₹30 lakh by tenure

All at 8.5%, only the term changing: over 10 years, an EMI of ₹37,196 and ₹14,63,520 of total interest. Over 15 years, ₹29,542 and ₹23,17,560. Over 20 years, ₹26,035 and ₹32,48,400. Over 25 years, ₹24,157 and ₹42,47,100. Over 30 years, ₹23,067 and ₹53,04,120.

A longer term lowers the EMI and raises the total interest, because the same money is borrowed for longer. Which of the two matters more depends on how much room your month has, which only you know.

EMI = P × i × (1 + i)^n / ((1 + i)^n − 1), where i = 8.5% ÷ 12 and n = 240 months

The same loan at different rates

Over 20 years, at example rates rather than any lender’s quote: 8% → ₹25,093 a month. 8.5% → ₹26,035. 9% → ₹26,992. 9.5% → ₹27,964. Most home loans in India are on floating rates, so the rate you start on is rarely the one you finish on.

Where the first year of EMIs goes

In the first month, ₹21,250 of the ₹26,035 is interest and only ₹4,785 reduces the loan. Across the first year you pay ₹3,12,420 and the balance falls by ₹59,673.

After five years you still owe ₹26,43,846; after ten years, half the term, you owe ₹20,99,839. The balance falls slowly at first and fast at the end, because each month’s interest is charged on whatever is still outstanding.

Why ₹30 lakh is a threshold

RBI’s ceilings on how much of a home’s value a loan may cover change at ₹30 lakh. A loan of up to ₹30 lakh can be up to 90 per cent of the value; above ₹30 lakh, and up to ₹75 lakh, the ceiling is 80 per cent.

So ₹30,00,000 is the largest loan that can still cover 90 per cent: it needs a home worth at least about ₹33.3 lakh and a down payment of about ₹3.3 lakh. A ₹35,00,000 home can still carry the same ₹30 lakh loan with ₹5,00,000 down. Borrowing even ₹31,00,000 moves the loan into the 80 per cent band, which needs a home worth at least ₹38,75,000.

The salary it needs, and what prepaying does

Lenders test the EMI against net monthly income. Where total EMIs may take 50% of it, ₹26,035 needs about ₹52,070 a month; where they may take 40%, about ₹65,088. Any EMI you already pay comes out of the same allowance.

Adding ₹5,000 a month to the ₹26,035 from the start clears the loan 76 months sooner and cuts total interest by ₹11,72,982. A single ₹2,00,000 part payment in the first month clears it 36 months sooner and cuts ₹7,56,538. On a floating-rate loan taken by an individual, RBI bars any charge for prepaying.