Indian home loans use a reducing-balance EMI. Interest is charged on the outstanding principal, so early EMIs are interest-heavy and later EMIs repay more principal.
P is the loan amount, r is the monthly rate (annual rate ÷ 12 ÷ 100), and n is the number of months.
For ₹10,00,000 at 7.2% for 10 years, r = 0.006 and n = 120. EMI is about ₹11,714. Total payable is about ₹14.06 lakh, so interest is about ₹4.06 lakh.
The identity does not care whether you call it a home loan or a generic EMI. Holding P and rate fixed:
| Years | EMI | Interest |
|---|---|---|
| 5 | ₹20,517 | ₹2,30,992 |
| 10 | ₹12,399 | ₹4,87,828 |
| 15 | ₹9,847 | ₹7,72,531 |
Open the home loan EMI calculator to change amount, rate and tenure and see a year-wise chart. If you want a borrowing limit first, use the eligibility calculator.
Estimates only — not a loan offer. experts@growmoneycalculator.com