Home loan EMI at 8.5% interest
Even half a percent on your rate changes your EMI for years. At 8.5%, a ₹50 lakh loan for 20 years has an EMI of about ₹43,391, and you would pay ₹54,13,879 in interest over the term. Every ₹1 lakh you borrow costs roughly ₹868 a month at this rate and tenure. The table below shows the EMI for loans from ₹20 lakh to ₹1 crore over 10 to 30 years, all at 8.5%. Use it to see how the tenure changes your payment. Then enter your own loan amount and tenure in the calculator above. If your bank quotes a different rate, change the rate box and the numbers update at once. The rates here are examples, so check your lender's current rate before you decide.
- ₹43,391
- Principal amount
- ₹50,00,000
- Total interest
- ₹54,13,879
- Total amount
- ₹1,04,13,879
You'll pay ₹54.14 L interest on a ₹50 L loan.
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What if…
One prepayment or a 0.5% rate change can move your interest by lakhs. Try one.
· Add a one-time payment or an extra monthly amount to see the saving.
Worth knowing
For every ₹1 you borrow, you pay back ₹1.08 in interest.
In year 13, more of your EMI starts going to the loan than to interest.
Pay one extra EMI a year and you save ₹10.29 L and finish 39 months early.
Banks use the standard reducing-balance formula:
EMI = P × r × (1+r)n / ((1+r)n − 1)
P is the loan amount, r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the number of months.
With your numbers
- P = ₹50,00,000
- r = 8.5% ÷ 12 ÷ 100 = 0.007083
- n = 240 months
- EMI = ₹43,391
Each month interest is charged on what you still owe. That is why early EMIs are mostly interest.
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| Loan amount | 10 years | 15 years | 20 years | 25 years | 30 years |
|---|---|---|---|---|---|
| ₹20 L | ₹24,797 | ₹19,695 | ₹17,356 | ₹16,105 | ₹15,378 |
| ₹30 L | ₹37,196 | ₹29,542 | ₹26,035 | ₹24,157 | ₹23,067 |
| ₹50 L | ₹61,993 | ₹49,237 | ₹43,391 | ₹40,261 | ₹38,446 |
| ₹75 L | ₹92,989 | ₹73,855 | ₹65,087 | ₹60,392 | ₹57,669 |
| ₹1 Cr | ₹1,23,986 | ₹98,474 | ₹86,782 | ₹80,523 | ₹76,891 |
Common questions
- What is the EMI at 8.5% for 20 years?
- About ₹868 a month for every ₹1 lakh you borrow. On ₹50 lakh that is ₹43,391.
- Is 8.5% a good home loan rate?
- That depends on your credit score, your income and what lenders are offering right now. Compare at least three banks and ask which benchmark your rate is linked to.
- What if my rate goes up after I take the loan?
- Floating rates follow the RBI repo rate. When the rate rises, your bank will either raise the EMI or extend the tenure. A 0.5% rise adds about ₹1,595 a month on ₹50 lakh over 20 years.
- How is the EMI worked out?
- EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the monthly interest rate and n is the number of months.