Understand Your Home Loan Before You Sign
The EMI is only half the story — total interest over the tenure is what really matters. Compare how tenure changes the cost of a ₹50 lakh loan @ 8.5%:
| Tenure | Monthly EMI | Total Interest | Total Payment |
|---|---|---|---|
| 10 years | ₹61,993 | ₹24.4 L | ₹74.4 L |
| 15 years | ₹49,237 | ₹38.6 L | ₹88.6 L |
| 20 years | ₹43,391 | ₹54.1 L | ₹1.04 Cr |
| 25 years | ₹40,261 | ₹70.8 L | ₹1.21 Cr |
| 30 years | ₹38,446 | ₹88.4 L | ₹1.38 Cr |
Smart Prepayment Tips
- Pay one extra EMI yearly — cuts a 20-year loan by roughly 3 years
- Increase EMI by 5–10% every year as income grows
- Use bonuses for part-prepayment in early years when interest share is highest
- Home loan gives tax deductions: 80C (principal, ₹1.5L) + 24(b) (interest, ₹2L)