What a ₹30 Lakh home loan really costs
₹30 lakh is close to the median home loan size in urban India — enough for a two-bedroom flat in most tier-2 cities or a compact one in a metro suburb. It is also the size at which total interest over a long tenure starts to exceed the principal itself.
The table below shows the monthly EMI for a ₹30 Lakh 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 | ₹36,398 | ₹37,196 | ₹38,003 | ₹38,819 |
| 15 years | ₹28,670 | ₹29,542 | ₹30,428 | ₹31,327 |
| 20 years | ₹25,093 | ₹26,035 | ₹26,992 | ₹27,964 |
| 25 years | ₹23,154 | ₹24,157 | ₹25,176 | ₹26,211 |
| 30 years | ₹22,013 | ₹23,067 | ₹24,139 | ₹25,226 |
Monthly EMI on a ₹30 Lakh 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 | ₹37,196 | ₹14.63 L | ₹44.63 L |
| 15 years | ₹29,542 | ₹23.18 L | ₹53.18 L |
| 20 years | ₹26,035 | ₹32.48 L | ₹62.48 L |
| 25 years | ₹24,157 | ₹42.47 L | ₹72.47 L |
| 30 years | ₹23,067 | ₹53.04 L | ₹83.04 L |
What salary do you need?
Lenders generally want your total EMIs to stay within 40–50% of net monthly income. For a ₹30 Lakh loan at 8.5% over 20 years, that points to a take-home income of roughly ₹65,000–80,000 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 — ₹30 Lakh, 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.