Before You Buy That Dream Home: Understand the EMI on a ₹1 Crore Loan
₹1 Crore Home Loan EMI Explained: Know the Numbers Before You Commit: Buying a home is a big dream, but in today’s metro cities, it often means taking a large home loan. If you’re planning a ₹1 crore home loan, it’s important to understand the monthly EMI and total interest before finalising your budget.
How is the EMI calculated?
Your home loan EMI depends on three things:
- Loan amount
- Interest rate
- Loan tenure
Most banks offer home loans for 15 to 30 years, with interest rates usually ranging between 8.5% and 9.5%.
EMI for a 20-year loan: For a ₹1 crore loan at 8% interest for 20 years, the EMI will be around ₹83,644 per month. Over 20 years, you’ll pay about ₹2.01 crore in total, including roughly ₹1.01 crore in interest.
EMI for a 30-year loan: With a 30-year tenure, the EMI reduces to about ₹73,376 per month.
However, the total amount paid rises to around ₹2.64 crore, with ₹1.64 crore as interest.
EMI for a 15-year loan: If you choose a 15-year tenure, the EMI increases to about ₹95,565, but the total interest drops to around ₹72 lakh. This option costs less overall if you can manage the higher EMI.
ALSO READ: PNB FD Schemes: Invest ₹2,00,000 and Earn ₹77,945
