Quick answer: At an illustrative fixed 7.75% annual rate, a ₹30 lakh loan costs about ₹24,628 a month over 20 years or ₹21,492 over 30 years. Total interest is about ₹29.11 lakh or ₹47.37 lakh respectively, before fees. Compare actual written lender offers; these are calculations, not current rate quotes.
EMI at different rates and tenures
For a ₹30 lakh loan. Figures are rounded and assume a fixed rate throughout, which floating-rate borrowers should treat as indicative.
| Rate | 15 years | 20 years | 25 years | 30 years |
|---|---|---|---|---|
| 7.50% | ₹27,810 | ₹24,168 | ₹22,170 | ₹20,976 |
| 7.75% | ₹28,238 | ₹24,628 | ₹22,660 | ₹21,492 |
| 8.00% | ₹28,670 | ₹25,093 | ₹23,154 | ₹22,013 |
| 8.25% | ₹29,104 | ₹25,562 | ₹23,654 | ₹22,538 |
| 8.50% | ₹29,542 | ₹26,035 | ₹24,157 | ₹23,067 |
What each tenure actually costs you
At 7.75%, the same ₹30 lakh loan:
| Tenure | EMI | Total repaid | Total interest |
|---|---|---|---|
| 15 years | ₹28,235 | ₹50.8 lakh | ₹20.8 lakh |
| 20 years | ₹24,622 | ₹59.1 lakh | ₹29.1 lakh |
| 25 years | ₹22,663 | ₹68.0 lakh | ₹38.0 lakh |
| 30 years | ₹21,492 | ₹77.4 lakh | ₹47.4 lakh |
Stretching from 20 to 30 years lowers the EMI by about ₹3,100 a month but adds roughly ₹18 lakh in interest. The longer tenure is worth taking only if the lower EMI is what makes the loan affordable at all, or if you plan to prepay aggressively later.
Where rates stand in September 2026
Obtain a dated written rate offer for your profile; advertised starting rates are not guaranteed.
- Obtain a dated written rate offer for your profile; advertised starting rates are not guaranteed.
- Obtain a dated written rate offer for your profile; advertised starting rates are not guaranteed.
- ICICI, Axis, Kotak: broadly comparable, priced by credit score and loan size
- Housing finance companies (LIC HFC, PNB Housing, Bajaj): generally higher, but sometimes approve cases banks decline
Advertised rates are the floor, offered to borrowers with high credit scores, salaried income at a listed employer, and a low loan-to-value ratio. Your actual quote may be 0.25% to 1% above it. Always ask for the rate in writing before paying a processing fee.
What determines the rate you are offered
| Factor | Effect |
|---|---|
| Credit score | Credit score is one factor; the lender determines eligibility and pricing |
| Loan-to-value ratio | A larger down payment lowers the rate; under 75% LTV usually gets the best pricing |
| Income type | Salaried at a listed company is priced lowest; self-employed pays more |
| Loan amount | Loans above ₹30 lakh sometimes get finer pricing than smaller ones |
| Existing relationship | Salary account holders often get a concession |
| Woman as primary applicant or co-applicant | Many lenders offer 0.05% concession |
Costs beyond the EMI
- Processing fee: 0.25% to 1% of the loan, often capped. Frequently waived if you ask, especially during festive periods.
- Legal and technical valuation charges: ₹3,000 to ₹10,000.
- Stamp duty on the mortgage deed, which varies by state.
- Property insurance and optional loan protection cover, which is usually optional despite how it is presented.
- Prepayment charges: none on floating-rate loans to individuals under RBI rules, but fixed-rate loans can carry them.
How to reduce the total cost
- Compare at least four lenders, including your salary account bank. A 0.25% difference on ₹30 lakh over 20 years is worth about ₹1.1 lakh.
- Improve your credit score before applying. Getting from 720 to 780 can shift you a full pricing band; see our guide on checking your credit score free.
- Prepay early, not late. A ₹1 lakh prepayment in year 2 saves far more than the same amount in year 15, because early EMIs are almost entirely interest.
- Pay one extra EMI a year. On a 20-year loan this typically cuts around 3 to 4 years off the tenure.
- Ask for a rate reset. If your existing loan is well above current rates, most lenders will reset it for a small conversion fee, which is cheaper and faster than a balance transfer.
- Consider a balance transfer only if the rate gap exceeds about 0.5% and you are early in the tenure; the fees rarely justify it otherwise.
Frequently asked questions
What salary do I need for a ₹30 lakh loan?
Lenders generally cap the EMI at 40% to 50% of net monthly income. For an EMI near ₹24,000, that implies roughly ₹50,000 to ₹60,000 net monthly income, more if you have other EMIs running.
Fixed or floating rate?
Most Indian borrowers choose floating, since tenures are long and rates move both ways. Fixed rates are priced higher and often revert to floating after a few years anyway.
Does prepayment reduce EMI or tenure?
You choose. Reducing tenure saves far more interest; reducing EMI improves monthly cash flow. Unless money is tight, reduce the tenure.
Can I claim tax benefits?
Under the old regime, principal repayment qualifies under Section 80C and interest under Section 24(b) within limits. The new regime removes most of these, so factor that into the real cost.
Last updated September 2026. Rates are indicative starting rates compiled from lender disclosures and change frequently; your offer depends on your profile. EMI figures are calculated on stated assumptions. General information, not financial advice.
Sources
For the current official position, check Reserve Bank of India. Fees, rates and rules change without notice, and figures in this article are illustrative unless a source is cited beside them.
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