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Loan EMI

₹15 lakh Home Loan EMI for 10 Years

At 8.5% interest over 10 years, a ₹15 lakh home loan costs about ₹18,598 every month. Over the full term you repay ₹22.32 lakh in total — the ₹15.00 lakh you borrowed plus ₹7.32 lakh of interest, which is 48.8% of the original loan.

Monthly EMI

₹18,598

10 years at 8.5% on ₹15 lakh

Total interest

₹7.32 lakh

Total repayment

₹22.32 lakh

Interest as % of loan

48.8%

Same loan over 5 yrs

₹30,775/mo

Interest saved by that

₹3.85 lakh

Net income usually needed

₹46,495/mo

Want to change the numbers?

Open the EMI calculator with prepayment and run your own amount, rate and tenure.

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Year-wise repayment on a ₹15 lakh home loan

Year-wise repayment on a ₹15 lakh home loan
YearPrincipal repaidInterest paidBalance left
1₹99,491₹1,23,683₹14,00,509
2₹1,08,285₹1,14,889₹12,92,224
3₹1,17,856₹1,05,318₹11,74,367
4₹1,28,274₹94,900₹10,46,094
5₹1,39,612₹83,562₹9,06,481
6₹1,51,953₹71,222₹7,54,529
7₹1,65,384₹57,790₹5,89,145
8₹1,80,002₹43,172₹4,09,143
9₹1,95,913₹27,261₹2,13,230
10₹2,13,230₹9,944₹0

How the EMI moves with the interest rate

How the EMI moves with the interest rate
RateEMITotal interest
7.50%₹17,805₹6,36,632
8.00%₹18,199₹6,83,897
8.50%₹18,598₹7,31,742
9.00%₹19,001₹7,80,164
9.50%₹19,410₹8,29,156

Tenure versus total interest

Tenure versus total interest
TenureEMITotal interest
5 years₹30,775₹3,46,488
10 years₹18,598₹7,31,742
15 years₹14,771₹11,58,797
20 years₹13,017₹16,24,164
25 years₹12,078₹21,23,522
30 years₹11,534₹26,52,133

The interest number is the one that matters

Borrowers compare EMIs; lenders profit from total interest. On this loan you pay ₹7.32 lakh in interest — effectively buying the ₹15.00 lakh twice over if that figure approaches the principal.

In the early years almost all of the EMI is interest. Look at year 1 in the table: only ₹99,491 of the ₹2,23,174 you pay actually reduces the loan.

Prepayment is where the real money is

Cutting the tenure from 10 to 5 years raises the EMI to ₹30,775 — ₹12,177 more a month — but saves ₹3.85 lakh in interest. That is the single highest-return financial decision available to most borrowers.

If the higher EMI is uncomfortable, pay one extra EMI a year instead. On a floating-rate home loan there is no prepayment penalty for individuals, so every rupee goes straight against the principal.

  • Always ask the bank to reduce the TENURE, not the EMI, when you prepay — reducing the EMI keeps you in debt just as long.
  • Prepay early. A prepayment in year 2 saves several times what the same amount saves in year 12.
  • Check whether the loan is on repo-linked rate; those reprice faster when the RBI cuts.

Tax relief on a home loan

Under the OLD tax regime, Section 24(b) allows up to ₹2 lakh a year of home loan interest against income from a self-occupied property, and Section 80C covers up to ₹1.5 lakh of principal. In year 1 of this loan the interest is roughly ₹1,23,683, so the ₹2 lakh ceiling is not fully used.

Under the NEW regime — the default since FY 2023-24 — neither deduction is available for a self-occupied property. Run both regimes before assuming the loan saves you tax.

Can you afford this EMI?

Most Indian lenders cap total EMIs at 40-50% of net monthly income. An EMI of ₹18,598 therefore usually requires take-home pay of at least ₹46,495 a month, before counting any existing loans.

Keep a separate emergency fund of six EMIs. A loan default damages your CIBIL score for years and is far more expensive than the interest you were trying to save.

Frequently Asked Questions

What is the EMI for a ₹15 lakh home loan for 10 years?

About ₹18,598 a month at 8.5% interest. Total repayment comes to ₹22.32 lakh, of which ₹7.32 lakh is interest.

How much total interest will I pay?

₹7.32 lakh over 10 years, which is 48.8% of the amount borrowed. A one percentage point change in rate moves this by roughly ₹97,414.

What salary do I need for a ₹15 lakh home loan?

Lenders generally want the EMI to stay under 40% of net income, so around ₹46,495 take-home per month. The exact figure depends on your other obligations, credit score and the lender's FOIR policy.

Should I take 10 years or a shorter tenure?

A 5-year tenure raises the EMI to ₹30,775 but saves ₹3.85 lakh in interest. Take the longest tenure you can get approved, then prepay aggressively — that gives you the low mandatory EMI as a safety net plus the interest saving.

Is there a penalty for prepaying?

No, not on floating-rate loans taken by individuals — the RBI prohibits foreclosure charges on those. Fixed-rate loans and loans to non-individuals can still attract a penalty, typically 2-4% of the outstanding amount.

Related calculations

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Figures are mathematical projections based on the stated assumptions. Market-linked returns are not guaranteed. This is educational information, not investment advice.