What is the EMI on a ₹50 lakh home loan?

The EMI by tenure, and what each one costs in total

All at 8.5%, only the term changing: over 10 years, an EMI of ₹61,993 and ₹24,39,160 of total interest. Over 15 years, ₹49,237 and ₹38,62,660. Over 20 years, ₹43,391 and ₹54,13,840. Over 25 years, ₹40,261 and ₹70,78,300. Over 30 years, ₹38,446 and ₹88,40,560.

The trade is lopsided at the long end. Going from 20 to 30 years lowers the EMI by ₹4,945 a month and adds ₹34,26,720 of interest. Going from 20 to 15 years raises the EMI by ₹5,846 a month and removes ₹15,51,180 of interest. Which of those matters more depends on how much room your month has, which only you know.

The same loan at different rates

Over 20 years, at example rates rather than any lender’s quote: 7.5% → ₹40,280 a month. 8% → ₹41,822. 8.5% → ₹43,391. 9% → ₹44,986. 9.5% → ₹46,607.

Moving from 8.5% to 9% adds ₹1,595 a month and ₹3,82,800 of interest over the term. Most home loans in India are on floating rates, so the rate you start on is rarely the one you finish on — which is why the section on rate rises below matters more than this table.

Where the first years of EMIs go

In the first month, ₹35,417 of the ₹43,391 is interest — 8.5% of ₹50,00,000, divided by twelve — and only ₹7,974 reduces the loan. Across the whole first year you pay ₹5,20,692 and the balance falls by just ₹99,530.

After five years, with ₹26,03,460 paid, you still owe ₹44,06,343. After ten years — half the term — you owe ₹34,99,678. The balance falls slowly at first and fast at the end, because each month’s interest is charged on whatever is still outstanding.

If the rate rises partway through

Take the same 20-year loan at 8.5%, and suppose the rate moves to 9.5% after three years, when ₹46,74,283 is outstanding and 204 months remain. The EMI can stay at ₹43,391 with the term stretched to 243 months — 39 months longer — or the end date can stay put with the EMI rising to ₹46,265.

Those are not equal. Paying ₹43,391 for 243 months costs ₹11,05,953 more in total than paying ₹46,265 for 204. RBI’s rules on resetting floating-rate EMIs, issued in August 2023, require lenders to tell borrowers when a reset happens and to offer the choice between a higher EMI, a longer term or a mix of both, along with the option to switch to a fixed rate where the lender has one.

What prepaying does to this loan

Adding ₹5,000 a month to the ₹43,391 from the start clears the loan 54 months sooner and cuts total interest by ₹13,89,281. Adding ₹10,000 a month clears it 86 months sooner and cuts ₹21,78,764. A single ₹2,00,000 part-payment in the first month clears it 24 months sooner and cuts ₹8,05,235.

RBI rules bar prepayment and foreclosure charges on floating-rate loans taken by individuals for purposes other than business, so on most home loans the cost of prepaying is the money no longer being available for anything else. Whether that trade is worth it is your decision; the guide on prepaying or investing sets out the arithmetic on both sides.

The salary a ₹50 lakh loan needs

Lenders test the EMI against net monthly income. Where total EMIs may take 50% of it, ₹43,391 needs about ₹86,782 a month; where they may take 40%, it needs ₹1,08,478. The guide on the salary for a ₹50 lakh loan works through the full range, and the affordability calculator adds the deposit and purchase costs.