A ₹1 crore loan repaid over 15 years carries a heavy EMI of ₹98,474, but the payoff is a far smaller interest bill of ₹77.25 L.
EMI on ₹1 Crore at 8.5% for 15 years
₹98,474 / month
Total interest ₹77.25 L over the loan
What this loan size means for you
The 15-year EMI is demanding — it implies net income near ₹2,46,185 a month — but the saving is large. The same crore over 20 years lowers the EMI to ₹86,782 while raising interest to ₹1.08 Cr; over 30 years the EMI drops to ₹76,891 but interest explodes to ₹1.77 Cr. Choosing 15 over 30 years on a crore saves about ₹1 Cr in interest — the cost of a second property in many cities.
Worked example (8.5% p.a.)
₹1 Cr over 15 years
₹98,474 / mo
Total interest, 15 yrs
₹77,25,312
Over 20 yrs (interest)
₹1,08,27,758
Over 30 yrs (interest)
₹1,76,80,885
Saving, 15 vs 30 yrs
₹99,55,573
How home loan EMI is calculated
Your EMI is fixed by the formula EMI = P × r × (1+r)n ÷ [(1+r)n − 1], where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12) and n is the number of monthly instalments. Each EMI is split between interest and principal repayment: the early years are mostly interest, the later years mostly principal. A longer tenure lowers the EMI but raises the total interest you pay, because the principal is outstanding for longer.
Frequently Asked Questions
What income do I need for a ₹1 Crore home loan?
As a rule of thumb lenders keep the EMI within about 40% of net monthly income, so a ₹98,474 EMI suggests take-home pay of roughly ₹2,46,185 a month. Existing loans reduce this headroom.
How much interest will I pay in total?
Over 15 years at 8.5% you repay ₹1,77,25,312 in all — the original ₹1 Crore plus ₹77,25,312 of interest.
Is the interest rate fixed or floating?
Most Indian home loans are floating, linked to an external benchmark such as the RBI repo rate. The figures here assume a constant 8.5% for illustration; your EMI changes when the benchmark moves.
Can I reduce the total interest?
Yes — a shorter tenure, a larger down payment, or periodic part-prepayments all cut the total interest, because they reduce either the principal or the time it stays outstanding.