Which law applies. Section numbers on this page are those of the Income-tax Act, 2025, which took effect on 1 April 2026 and governs tax year 2026-27 onwards. Section 24(b) of the Income-tax Act, 1961 corresponds to section 22(1)(b) of the 2025 Act, with the interest limit in section 22(2).
What is the monthly EMI on a ₹50 lakh home loan at 8.5% for 20 years?
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Calculate the exact monthly EMI on a ₹50 lakh home loan at the current average rate of 8.5% p.a. over a 20-year tenure, including total interest paid.
Why Home Loan EMI Math Matters
A ₹50 lakh home loan at 8.5% interest over 20 years means a monthly EMI of ₹43,391. The total amount paid back is ₹1.04 crore — the ₹50 lakh principal plus ₹54.1 lakh of interest. You pay back more in interest over 20 years than you originally borrowed.
Three numbers reshape this radically. First, the rate: at 9% the same loan EMI is ₹44,986 — a 0.5% rate move costs ₹3.83 lakh extra over 20 years. Second, the tenure: choosing 15 years instead of 20 raises the EMI to ₹49,237 but saves about ₹15.5 lakh in total interest. Third, prepayments: a single ₹5 lakh prepayment in year 3 typically saves ₹12-15 lakh in interest if you reduce the tenure rather than the EMI.
Tax benefits soften the blow under the old regime: Section 22(1)(b) allows up to ₹2 lakh of interest deduction per year on a self-occupied home, and Section 123 allows up to ₹1.5 lakh of principal repayment. The new regime offers neither — so home loan buyers paying significant interest should compute both regimes carefully each year.