₹10 lakh home loan EMI: the short answer
A ₹10 lakh home loan at 8% costs an EMI of ₹8,364 a month for 20 years, ₹7,338 for 30 years or ₹9,557 for 15 years. Over 20 years you would pay ₹10.07 lakh in interest on top of the ₹10 lakh borrowed. 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%).
Loans of this size are typical for a first flat in a tier-2 or tier-3 city, an affordable-housing project on the edge of a metro, or a top-up to build on a plot you already own. Because the loan is ₹10 lakh, RBI rules let the bank lend up to 90% of the property value, so a home worth about ₹11.11 lakh needs a down payment of roughly ₹1.11 lakh plus stamp duty and registration (usually another 5–8% depending on the state).
10 lakh home loan EMI for 10, 15, 20, 25 and 30 years
| Tenure | EMI / month | Total interest | Total payable | Interest vs loan |
|---|---|---|---|---|
| 10 years | ₹12,133 | ₹4.56 lakh | ₹14.56 lakh | 46% |
| 15 years | ₹9,557 | ₹7.2 lakh | ₹17.2 lakh | 72% |
| 20 years | ₹8,364 | ₹10.07 lakh | ₹20.07 lakh | 101% |
| 25 years | ₹7,718 | ₹13.15 lakh | ₹23.15 lakh | 132% |
| 30 years | ₹7,338 | ₹16.42 lakh | ₹26.42 lakh | 164% |
Going from 20 to 30 years cuts the EMI by ₹1,027 a month (12%) but adds ₹6.34 lakh of interest. On a 30-year tenure the interest alone (₹16.42 lakh) is more than the amount you borrowed. The 15-year option costs ₹1,192 more per month than 20 years and saves ₹2.87 lakh.
EMI at different interest rates
| Rate | EMI (20 yrs) | EMI (30 yrs) | Interest (20 yrs) |
|---|---|---|---|
| 7.5% SBI floor | ₹8,056 | ₹6,992 | ₹9.33 lakh |
| 8% HDFC floor | ₹8,364 | ₹7,338 | ₹10.07 lakh |
| 8.5% | ₹8,678 | ₹7,689 | ₹10.83 lakh |
| 9% | ₹8,997 | ₹8,046 | ₹11.59 lakh |
| 9.5% | ₹9,321 | ₹8,409 | ₹12.37 lakh |
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 ₹156 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 10 lakh EMI goes
| Year | Interest paid | Principal repaid | Balance at year end | Loan repaid so far |
|---|---|---|---|---|
| Year 1 | ₹79,236 | ₹21,137 | ₹9,78,863 | 2% |
| Year 3 | ₹75,582 | ₹24,791 | ₹9,31,181 | 7% |
| Year 5 | ₹71,296 | ₹29,077 | ₹8,75,256 | 12% |
| Year 10 | ₹57,053 | ₹43,320 | ₹6,89,406 | 31% |
| Year 15 | ₹35,832 | ₹64,540 | ₹4,12,519 | 59% |
| Year 20 | ₹4,217 | ₹96,155 | ₹0 | 100% |
In the first year, 79% of your EMIs (₹79,236) is interest and only ₹21,137 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 ₹6.89 lakh, 69% of the original amount, which is why early prepayments save so much.
Salary required for a 10 lakh 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 ₹8,364 alone you therefore need a take-home salary of at least ₹16,700 a month; on a 30-year tenure that falls to ₹14,700. Using the typical salary structure from our CTC guides, that take-home corresponds to a package of about 3 LPA. 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 | ₹10.07 lakh | — |
| One-time ₹1 lakh at end of year 3 | 16 yrs 8 mo | ₹7.68 lakh | ₹2.39 lakh |
| One extra EMI (₹8,364) every year | 16 yrs 11 mo | ₹8.25 lakh | ₹1.82 lakh |
| Raise EMI by 5% every year | 12 yrs 4 mo | ₹6.54 lakh | ₹3.54 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 10 lakh 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 ₹79,236, so you can claim all of it. The tax saving is up to ₹24,722 a year in the 30% slab or ₹16,481 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 3 LPA the tax is the same either way (₹0), so the new regime wins on simplicity.
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.
PMAY-U 2.0 interest subsidy: check if you qualify
Families with annual household income up to ₹9 lakh (EWS, LIG and MIG) who do not own a pucca house anywhere in India may get an interest subsidy under the Pradhan Mantri Awas Yojana – Urban 2.0 Interest Subsidy Scheme: 4% on the first ₹8 lakh of a loan of up to ₹25 lakh for a home costing up to ₹35 lakh, paid in instalments up to a maximum of about ₹1.8 lakh. The subsidy is credited to the loan account, which works like a prepayment and shortens the loan or reduces the EMI. Eligibility and the scheme window are set by the Ministry of Housing and Urban Affairs, so confirm on the official PMAY-U portal or with your lender before you count on it.
10 lakh vs nearby loan amounts
| Loan | 15 yrs | 20 yrs | 30 yrs | Take-home needed* |
|---|---|---|---|---|
| ₹10 lakh | ₹9,557 | ₹8,364 | ₹7,338 | ₹16,729 |
| ₹15 lakh | ₹14,335 | ₹12,547 | ₹11,006 | ₹25,093 |
| ₹20 lakh | ₹19,113 | ₹16,729 | ₹14,675 | ₹33,458 |
*Net monthly salary for the 20-year EMI at 50% FOIR, with no other loans. All EMIs at 8%.
Practical tips before you sign
- Keep the tenure as short as your budget allows: at this loan size, 15 years instead of 20 adds only ₹1,192 to the EMI but saves ₹2.87 lakh of interest.
- Ask for a fixed-rate period only if the premium is small; most small-ticket loans are floating and can be prepaid without charges.
- Build a 6-month EMI buffer (₹50,200) before taking possession — a missed EMI hurts your credit score for years.
- 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.