What a ₹1 Crore home loan really costs
A ₹1 crore home loan is a major, decades-long commitment usually tied to premium property in Mumbai, Delhi NCR or Bengaluru. At this scale, small differences in interest rate translate into sums larger than most people's annual income.
The table below shows the monthly EMI for a ₹1 Crore loan at the rates lenders are realistically quoting, across every common tenure. Find your offered rate along the top and your tenure down the side.
| Tenure | 8% | 8.5% | 9% | 9.5% |
|---|---|---|---|---|
| 10 years | ₹1,21,328 | ₹1,23,986 | ₹1,26,676 | ₹1,29,398 |
| 15 years | ₹95,565 | ₹98,474 | ₹1,01,427 | ₹1,04,422 |
| 20 years | ₹83,644 | ₹86,782 | ₹89,973 | ₹93,213 |
| 25 years | ₹77,182 | ₹80,523 | ₹83,920 | ₹87,370 |
| 30 years | ₹73,376 | ₹76,891 | ₹80,462 | ₹84,085 |
Monthly EMI on a ₹1 Crore loan, reducing-balance method.
Total interest by tenure
The EMI is only half the story. Stretching the tenure lowers the monthly figure but raises what the loan costs in total — often dramatically:
| Tenure at 8.5% | Monthly EMI | Total interest | Total repaid |
|---|---|---|---|
| 10 years | ₹1,23,986 | ₹48.78 L | ₹1.49 Cr |
| 15 years | ₹98,474 | ₹77.25 L | ₹1.77 Cr |
| 20 years | ₹86,782 | ₹1.08 Cr | ₹2.08 Cr |
| 25 years | ₹80,523 | ₹1.42 Cr | ₹2.42 Cr |
| 30 years | ₹76,891 | ₹1.77 Cr | ₹2.77 Cr |
What salary do you need?
Lenders generally want your total EMIs to stay within 40–50% of net monthly income. For a ₹1 Crore loan at 8.5% over 20 years, that points to a take-home income of roughly ₹2.2–2.6 lakh a month, assuming you carry no other significant EMIs. A co-applicant's income can be combined to improve eligibility, which is why joint applications are common.
How the EMI is calculated
- P — ₹1 Crore, the loan amount
- r — monthly rate = annual rate ÷ 12 ÷ 100
- n — tenure in months
This is the reducing-balance method every Indian bank and housing finance company uses: interest each month is charged only on the outstanding principal, which falls with every payment.
Reducing what you pay
- Prepay in the early years. The interest share of each EMI is highest at the start, so early prepayments buy far more than late ones.
- Keep the EMI, cut the tenure. When you prepay, choosing to shorten the tenure rather than reduce the EMI saves substantially more interest.
- Negotiate or transfer. Floating-rate home loans for individuals carry no prepayment or foreclosure penalty under RBI rules, so a balance transfer to a cheaper lender is always on the table.
- Compare on the reducing-balance rate, never a flat rate — a 10% flat rate is roughly equivalent to 18–19% reducing balance.