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.
Year-wise repayment on a ₹15 lakh home loan
| Year | Principal repaid | Interest paid | Balance 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
| Rate | EMI | Total 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 | EMI | Total 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.
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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.