Purchasing a home is a significant milestone, and financing it with a home loan is one of the favourite ways. Before applying for a home loan, you should be aware of the Equated Monthly Installments (EMIs) that you will be required to pay. For a ₹10 lakh home loan, the EMI differs depending on some parameters such as the loan term, rate of interest, and repayment cycle. In this article, we will explain how the ₹10 lakh home loan EMI varies for different tenures, how to calculate it, and some key points to keep in mind while availing a home loan.
What is an EMI?
An Equated Monthly Installment (EMI) is the fixed amount a borrower repays to the lender each month to pay off the loan. It consists of the principal (the actual amount taken) and the interest on the loan. The EMI remains constant throughout the loan tenure, provided that the interest rate remains constant.
Factors Affecting Home Loan EMI
Several factors influence the EMI for a home loan of ₹10 lakh, including:
- Loan Amount – The amount borrowed from the financial institution or bank.
- Interest Rate – The rate of interest at which interest is charged on the borrowed sum.
- Loan Tenure – The time period within which the loan needs to be repaid. The higher the tenure, the lower will be the EMI but the greater the total interest paid.
- Type of Interest Rate – Fixed interest rates have a fixed EMI, whereas floating rates may lead to variation in EMI payments.
Understanding these factors allows the borrower to select a loan structure suitable for their financial condition.
₹10 Lakh Home Loan EMI for Different Tenures
The ₹10 lakh home loan EMI varies depending on the loan tenure and interest rate. The following table illustrates the estimated EMIs for different loan tenures, assuming an interest rate of 11.50% per annum:
| Loan Tenure | Monthly EMI | Total Interest Payable | Total Amount Payable |
| 5 Years | ₹21,993 | ₹3,19,556 | ₹13,19,556 |
| 10 Years | ₹14,060 | ₹6,87,145 | ₹16,87,145 |
| 15 Years | ₹11,682 | ₹11,02,742 | ₹21,02,742 |
| 20 Years | ₹10,664 | ₹15,59,431 | ₹25,59,431 |
| 25 Years | ₹10,165 | ₹20,49,407 | ₹30,49,407 |
| 30 Years | ₹9,903 | ₹25,65,049 | ₹35,65,049 |
The table shows how a shorter loan period results in a higher EMI but lower total interest payment, whereas longer periods result in a lower EMI but much greater interest payments.
Using a ₹10 Lakh Home Loan EMI Calculator
Instead of performing the calculations manually, the borrowers can easily use an home loan EMI calculator to obtain quick and precise results. A home loan EMI calculator allows the users to input the loan amount, interest rate, and tenure to calculate the EMI amount instantly.
Benefits of Using an EMI Calculator
- Accuracy – No possibility of human error in calculation.
- Time-Saving – Provides instant EMI values for enlightened decision-making.
- Financial Planning – Helps the borrowers understand their monthly payments.
- Comparison – Let the borrowers compare EMIs at different tenors and interest rates.
A home loan EMI calculator can also make the task of loan planning easier and clearer.
₹10 Lakh Home Loan EMI for 5 Years vs. 10 Years
Homebuyers often compare short and medium-term loan options when planning their repayment strategy. Here’s a side-by-side comparison of the EMI for a ₹10 lakh home loan over 5 years versus 10 years at an interest rate of 11.50% per annum:
5-Year Tenure
- EMI: ₹21,993
- Total Interest Paid: ₹3,19,556
- Total Amount Paid: ₹13,19,556
10-Year Tenure
- EMI: ₹14,060
- Total Interest Paid: ₹6,87,145
- Total Amount Paid: ₹16,87,145
Choosing a 5-year tenure results in significantly lower interest payments, but the monthly EMI is considerably higher. On the other hand, a 10-year tenure makes monthly payments more manageable, though the total interest paid over time is much higher.
How to Reduce Your Home Loan EMI
For individuals buying homes but not wanting high EMIs, here are a few steps that reduce EMI payments:
- Opt for a Larger Tenure – A longer tenure for the loan lowers EMI payments but increases the total interest cost.
- Pay a Larger Down Payment – A larger down payment reduces the amount of the loan, leading to smaller EMIs.
- Negotiate for Lesser Interest Rate – Borrowers with a good credit rating can negotiate lesser interest rates from lenders.
- Opt for Loan Balance Transfer – If the other bank is offering a lesser interest rate, home loan balance transfer saves EMIs.
- Make Prepayments – Prepaying a portion of the loan minimizes the loan outstanding, thereby reducing future EMI outgo.
Grihum Housing Finance: Your Home Loan Partner
At Grihum Housing Finance, we understand the importance of financing a home and offer personalized solutions to enable one to own a home. You may be either a first-home buyer or prefer to refinance an existing home loan, for which we offer:
- Competitive home loan interest rates and flexible loan tenures.
- Easy online EMI calculators to help you plan your finances.
- Personalized support to make the home loan application process easy.
Our professional advisors guide you in selecting the best loan plan that suits your financial requirements while maximizing the benefits available to you.
Conclusion
A ₹10 lakh house loan EMI can be customised to fit different financial requirements based on EMI affordability and choice of tenure. Borrowers must balance interest rates, tenure, and repayability before committing to a loan. The use of an EMI calculator and comparing different tenors can help with better decision-making.
With Grihum Housing Finance, you are given customized home loan solutions, and your dream house becomes a reality without getting you into financial jeopardy. If you want a smaller loan tenure with larger EMIs or a bigger one with economical monthly payments, we have the assistance and leniency you need. Apply for your home loan today and start on the path to being a homeowner confidently.
