₹1 crore home loan EMI: the short answer
Borrow ₹1 crore for a home at 8% and your monthly EMI is about ₹83,644 on a 20-year tenure — ₹77,182 on 25 years and ₹73,376 on 30. The 20-year loan carries ₹1.01 crore of interest. That is about ₹836 for every ₹1 lakh borrowed on a 20-year tenure at 8%. The calculation assumes a floating rate of 8%, which is what a salaried borrower with a good credit score (750+) is typically offered after the October 2026 repo hike: SBI’s regular home loans are priced at 7.5%–8.8% and HDFC Bank’s start at 8% (repo 5.50% + 2.50%).
A ₹1 crore home loan usually funds a premium apartment in Mumbai, Delhi NCR or Bengaluru, or a large independent house. For loans above ₹75 lakh RBI limits the loan to 75% of the property value, so the property would be worth about ₹1.33 crore and you need around ₹33.33 lakh upfront before stamp duty, registration and GST on an under-construction flat.
1 crore home loan EMI for 10, 15, 20, 25 and 30 years
| Tenure | EMI / month | Total interest | Total payable | Interest vs loan |
|---|---|---|---|---|
| 10 years | ₹1,21,328 | ₹45.59 lakh | ₹1.46 crore | 46% |
| 15 years | ₹95,565 | ₹72.02 lakh | ₹1.72 crore | 72% |
| 20 years | ₹83,644 | ₹1.01 crore | ₹2.01 crore | 101% |
| 25 years | ₹77,182 | ₹1.32 crore | ₹2.32 crore | 132% |
| 30 years | ₹73,376 | ₹1.64 crore | ₹2.64 crore | 164% |
Going from 20 to 30 years cuts the EMI by ₹10,268 a month (12%) but adds ₹63.41 lakh of interest. On a 30-year tenure the interest alone (₹1.64 crore) is more than the amount you borrowed. The 15-year option costs ₹11,921 more per month than 20 years and saves ₹28.73 lakh.
EMI at different interest rates
| Rate | EMI (20 yrs) | EMI (30 yrs) | Interest (20 yrs) |
|---|---|---|---|
| 7.5% SBI floor | ₹80,559 | ₹69,921 | ₹93.34 lakh |
| 8% HDFC floor | ₹83,644 | ₹73,376 | ₹1.01 crore |
| 8.5% | ₹86,782 | ₹76,891 | ₹1.08 crore |
| 9% | ₹89,973 | ₹80,462 | ₹1.16 crore |
| 9.5% | ₹93,213 | ₹84,085 | ₹1.24 crore |
Your exact rate depends mostly on your credit score, the loan-to-value ratio and whether you are salaried or self-employed. A 0.25% rise — the size of the RBI’s October 2026 hike — raises this 20-year EMI by about ₹1,563 a month. If the bank keeps the EMI unchanged and extends the tenure instead (the usual default), the loan runs about 1 yr longer.
Amortization snapshot: where your 1 crore EMI goes
| Year | Interest paid | Principal repaid | Balance at year end | Loan repaid so far |
|---|---|---|---|---|
| Year 1 | ₹7,92,361 | ₹2,11,367 | ₹97,88,633 | 2% |
| Year 3 | ₹7,55,819 | ₹2,47,909 | ₹93,11,814 | 7% |
| Year 5 | ₹7,12,958 | ₹2,90,770 | ₹87,52,558 | 12% |
| Year 10 | ₹5,70,526 | ₹4,33,202 | ₹68,94,063 | 31% |
| Year 15 | ₹3,58,323 | ₹6,45,405 | ₹41,25,191 | 59% |
| Year 20 | ₹42,175 | ₹9,61,553 | ₹0 | 100% |
In the first year, 79% of your EMIs (₹7,92,361) is interest and only ₹2,11,367 reduces the loan. The principal part of the EMI overtakes the interest part only in month 137 (year 12) on a 20-year loan — and in year 22 on a 30-year loan. After 10 years you still owe ₹68.94 lakh, 69% of the original amount, which is why early prepayments save so much.
Salary required for a 1 crore home loan
Most banks allow total EMIs of up to about 50% of net monthly income (the fixed obligation to income ratio, or FOIR) for typical salaries, a little more for high earners. To carry the 20-year EMI of ₹83,644 alone you therefore need a take-home salary of at least ₹1,67,300 a month; on a 30-year tenure that falls to ₹1,46,800. Using the typical salary structure from our CTC guides, that take-home corresponds to a package of about 28 LPA (or 24 LPA on a 30-year tenure). Any existing car or personal loan EMI is deducted from that limit first, so ₹10,000 of other EMIs cuts your eligibility by about ₹11.96 lakh of loan at 8%.
Prepayment: how much can you save?
| Strategy (EMI unchanged) | Loan closes in | Total interest | Interest saved |
|---|---|---|---|
| No prepayment | 20 yrs | ₹1.01 crore | — |
| One-time ₹10 lakh at end of year 3 | 16 yrs 8 mo | ₹76.84 lakh | ₹23.91 lakh |
| One extra EMI (₹83,644) every year | 16 yrs 11 mo | ₹82.54 lakh | ₹18.21 lakh |
| Raise EMI by 5% every year | 12 yrs 4 mo | ₹65.36 lakh | ₹35.39 lakh |
Banks cannot charge prepayment or foreclosure fees on floating-rate home loans taken by individuals, so part-payments are free. When you prepay, ask the bank to keep the EMI and cut the tenure — that is what saves the most interest; reducing the EMI instead saves far less. Whether to prepay or invest the surplus depends on your tax regime and risk appetite: see prepay vs invest.
Section 24(b) tax benefit on a 1 crore home loan: old vs new regime
In the old regime, interest on a loan for a self-occupied home is deductible up to ₹2 lakh a year (Section 24(b) of the 1961 Act; the same limit carries into the Income-tax Act 2025 in force from 1 April 2026), and the principal counts toward the ₹1.5 lakh 80C limit. Year-one interest on this loan is ₹7,92,361, so you can claim the full ₹2 lakh — and interest stays above ₹2 lakh for the first 17 years. The tax saving is up to ₹62,400 a year in the 30% slab or ₹41,600 in the 20% slab (with 4% cess).
In the new regime (the default), there is no deduction for interest on a self-occupied home. For a let-out property, interest is deductible against rent in both regimes, but in the new regime a loss from house property cannot be set off against salary. For someone earning exactly 28 LPA (the minimum package above), the new regime still wins even after claiming ₹2,00,000 of interest, ₹1.5 lakh of 80C and ₹25,000 of 80D: old-regime tax would be ₹4,71,804 against ₹3,39,984. Low slab rates and the ₹12 lakh rebate in the new regime outweigh the deduction at this income.
Put differently: over 20 years the interest equals about 120 of your 240 EMIs — more than seven years of payments go purely to the lender.
Big-ticket loans: what lenders look at
For a ₹1 crore loan, banks scrutinise more than the payslip: stability of income over 2–3 years, variable pay and bonus history, existing investments, and a credit score usually above 750 for the best pricing. Many borrowers at this level are offered a home-loan overdraft (for example SBI MaxGain or similar products), where surplus cash parked in the linked account reduces interest daily but can be withdrawn. The rate is typically a little higher than a regular home loan, so it pays only if you keep a large balance there. For high-income borrowers in the 30% slab, the ₹2 lakh interest deduction is small compared with the interest — see the tax section below.
1 crore vs nearby loan amounts
| Loan | 15 yrs | 20 yrs | 30 yrs | Take-home needed* |
|---|---|---|---|---|
| ₹80 lakh | ₹76,452 | ₹66,915 | ₹58,701 | ₹1,33,830 |
| ₹90 lakh | ₹86,009 | ₹75,280 | ₹66,039 | ₹1,50,559 |
| ₹1 crore | ₹95,565 | ₹83,644 | ₹73,376 | ₹1,67,288 |
| ₹1.5 crore | ₹1,43,348 | ₹1,25,466 | ₹1,10,065 | ₹2,50,932 |
| ₹2 crore | ₹1,91,130 | ₹1,67,288 | ₹1,46,753 | ₹3,34,576 |
*Net monthly salary for the 20-year EMI at 50% FOIR, with no other loans. All EMIs at 8%.
Practical tips before you sign
- With interest above ₹2 lakh for 17 of the 20 years, the old-regime deduction caps out early; prepayment is a pure 8%-ish guaranteed return.
- A step-up plan (raising the EMI 5% a year as your salary rises) finishes the loan in 12 yrs 4 mo and saves ₹35.39 lakh.
- Get term insurance at least equal to the outstanding loan; lender-sold single-premium cover is often costlier than a standalone term plan.
- Check the sanction letter for the spread over repo/EBLR and the reset frequency — on repo-linked loans the rate resets at least once every three months.