EMI on a ₹25 lakh home loan
At 8.00% a year for 20 years, the EMI on a ₹25 lakh home loan is ₹20,911. In total, you repay ₹50.19 lakh, and ₹25.19 lakh of this is interest. RBI lets a bank lend a maximum of 90% of the property value for this loan. Thus, the home must have a value of ₹27.78 lakh or more. For this loan, you usually must have a take-home pay of approximately ₹41,822 each month.
The example rate of 8.00% is the RBI repo rate (5.50%) plus 2.50%. This 2.50% is the lowest spread that HDFC Bank and Axis Bank show for borrowers with good credit. The EMI for each bank is in the table of lenders on this page.
₹25 Lakh home loan EMI by tenure
At 8.00%. A longer tenure gives a lower EMI, but the total interest increases quickly.
| Tenure | EMI each month | Total interest | Total paid | Interest as % of loan |
|---|---|---|---|---|
| 5 years | ₹50,691 | ₹5.41 lakh | ₹30.41 lakh | 22% |
| 10 years | ₹30,332 | ₹11.40 lakh | ₹36.40 lakh | 46% |
| 15 years | ₹23,891 | ₹18 lakh | ₹43 lakh | 72% |
| 20 years | ₹20,911 | ₹25.19 lakh | ₹50.19 lakh | 101% |
| 25 years | ₹19,295 | ₹32.89 lakh | ₹57.89 lakh | 132% |
| 30 years | ₹18,344 | ₹41.04 lakh | ₹66.04 lakh | 164% |
Down payment: the minimum property value for this loan
RBI sets a maximum loan for each property. This maximum is a percentage of the property value (loan-to-value, LTV). The percentage changes with the loan (RBI Credit Facilities Directions, 2025, para 111):
- 90% for a loan of ₹30 lakh or less
- 80% for a loan of more than ₹30 lakh, to a maximum of ₹75 lakh
- 75% for a loan of more than ₹75 lakh
A ₹25 lakh loan is in the 90% band. Thus, the property must have a value of a minimum of ₹27.78 lakh. You must pay a minimum of ₹2.78 lakh from your savings.
Stamp duty, registration charges and documentation charges are not part of the property value for this limit. Thus, you must pay these costs and the down payment. A lender can set a lower limit than the RBI limit, but it cannot set a higher limit.
Example
Small loans are frequently for a first home, a resale flat or a house in a small town. The income of the family is frequently in the PMAY limits. Before you accept the loan, speak to your lender about the subsidy, because the lender must register it.
- A family has a take-home pay of ₹55,000 each month. The family gets a home for ₹28 lakh with a ₹25 lakh loan for 20 years at 8.00%.
- Money from the family: a down payment of ₹3 lakh (11% of the price). The RBI limit of 90% sets this minimum. The family also pays stamp duty and registration.
- EMI: ₹20,911. This is 38% of the take-home pay. It is in the 50% FOIR limit, and there is space for one more small loan.
- If the rate increases to 10.00%: the EMI is ₹24,126. This is 44% of the take-home pay.
- PMAY: the family can get a subsidy of a maximum of ₹1.80 lakh in five years. For this subsidy, the income of the family must be ₹9 lakh a year or less, and this must be its first pucca house.
- Tax: the interest in the first year is ₹1.98 lakh. In the old regime, you can deduct all of this interest.
This is only an example. The rate, the property value and the eligibility rules of your lender set the loan that you get.
EMI at the lowest rate of each lender
This table shows the EMI for 20 years on ₹25 lakh at the lowest rate that each lender shows on its rate page. Lenders give the lowest rates to borrowers with the highest credit scores. For the full range of rates and the source, refer to the page for each bank.
| Lender | Starting rate | EMI (20 years) | Total interest |
|---|---|---|---|
| LIC Housing Finance | 7.15% | ₹19,608 | ₹22.06 lakh |
| Indian Bank | 7.35% | ₹19,911 | ₹22.79 lakh |
| Bank of Baroda | 7.40% | ₹19,987 | ₹22.97 lakh |
| Canara Bank | 7.40% | ₹19,987 | ₹22.97 lakh |
| Union Bank of India | 7.40% | ₹19,987 | ₹22.97 lakh |
| PNB | 7.45% | ₹20,063 | ₹23.15 lakh |
| Federal Bank | 7.50% | ₹20,140 | ₹23.34 lakh |
| SBI | 7.50% | ₹20,140 | ₹23.34 lakh |
| Kotak Mahindra Bank | 7.60% | ₹20,293 | ₹23.70 lakh |
| Axis Bank | 8.00% | ₹20,911 | ₹25.19 lakh |
| HDFC Bank | 8.00% | ₹20,911 | ₹25.19 lakh |
| IndusInd Bank | 8.00% | ₹20,911 | ₹25.19 lakh |
| ICICI Bank | 8.75% | ₹22,093 | ₹28.02 lakh |
These rates are from the rate page of each lender. We examined them on 27 Oct 2026.
EMI at different interest rates
| Rate | 10 years | 15 years | 20 years | 30 years |
|---|---|---|---|---|
| 7.50% | ₹29,675 | ₹23,175 | ₹20,140 | ₹17,480 |
| 8.00% | ₹30,332 | ₹23,891 | ₹20,911 | ₹18,344 |
| 8.50% | ₹30,996 | ₹24,618 | ₹21,696 | ₹19,223 |
| 9.00% | ₹31,669 | ₹25,357 | ₹22,493 | ₹20,116 |
| 9.50% | ₹32,349 | ₹26,106 | ₹23,303 | ₹21,021 |
| 10.00% | ₹33,038 | ₹26,865 | ₹24,126 | ₹21,939 |
Salary for a ₹25 lakh home loan
Banks usually keep the total of all your EMIs at a maximum of 50–55% of your net monthly income (FOIR). This limit is lender practice, not an RBI rule. If you have no other loans, at 8.00%:
| Tenure | EMI | Net monthly income needed |
|---|---|---|
| 15 years | ₹23,891 | ₹43,439 – ₹47,783 |
| 20 years | ₹20,911 | ₹38,020 – ₹41,822 |
| 25 years | ₹19,295 | ₹35,083 – ₹38,591 |
| 30 years | ₹18,344 | ₹33,353 – ₹36,688 |
The bank subtracts the EMIs that you pay at this time from this limit first. The loan affordability calculator calculates the loan for your numbers.
If rates increase
The rate of a repo-linked loan changes with the RBI repo rate. The repo rate increased from 5.25% to 5.50% in October 2026. In 2022–23, it increased by 2.5 percentage points (repo rate scenarios). Make sure that you can pay the EMI if rates increase:
| Rate | EMI (20 years) | Extra a month | Income for 50% FOIR |
|---|---|---|---|
| 8.00% (example rate) | ₹20,911 | — | ₹41,822 |
| 9.00% (+1%) | ₹22,493 | +₹1,582 | ₹44,986 |
| 10.00% (+2%) | ₹24,126 | +₹3,215 | ₹48,251 |
Tax: the ₹2 lakh interest limit on ₹25 lakh
These deductions are only for the old regime. For a home that you live in, each borrower can deduct a maximum of ₹2,00,000 of interest each year. This is section 22 of the Income-tax Act, 2025 (24(b) in the 1961 Act). Principal is part of the ₹1,50,000 limit of section 123 (80C in the 1961 Act). EPF, PPF and insurance also use this limit.
The new regime gives no deduction for a home that you live in. Refer to the Income-tax Act, 2025 section table.
For ₹25 lakh at 8.00% for 20 years, the interest in the first year is approximately ₹1.98 lakh. This is less than the limit. Thus, you can deduct all of the interest each year. One borrower gets the full deduction. For this loan, a joint loan does not give more interest deduction.
The deduction in the first year for one borrower is a maximum of ₹2.51 lakh. In the 30% slab, this decreases your tax by approximately ₹78,291. In the 20% slab, it decreases your tax by approximately ₹52,194. These numbers include the 4% cess. Use the tax benefit calculator for your numbers.
PMAY-Urban 2.0: an interest subsidy for some borrowers
A loan of a maximum of ₹25 lakh can get an interest subsidy from the government. The scheme is PMAY-Urban 2.0 (PMAY-U 2.0 guidelines, para 5.4). These are the conditions:
- The income of the household is a maximum of ₹9 lakh a year (EWS: ₹3 lakh, LIG: ₹6 lakh, MIG: ₹9 lakh).
- The property value is a maximum of ₹35 lakh, and the carpet area is a maximum of 120 square meters.
- No person in the family has a pucca house in India.
- The lender approved and paid the loan on or after 1 September 2024. The tenure is more than 5 years.
The subsidy is 4% each year on the first ₹8 lakh of the loan, for a maximum of 12 years. The government pays a maximum of ₹1.80 lakh in five payments, one each year. Your lender sends the claim. You can claim the subsidy only one time for each property. If you move the loan to a different lender (balance transfer), you cannot claim the subsidy.
Pay one more EMI each year
Pay one more EMI (₹20,911) at the end of each year. Then you pay back the 20-year loan in approximately 16 years 11 months. This is 37 months less, and you pay approximately ₹4.55 lakh less interest. The RBI does not let lenders charge a fee when you prepay a floating-rate home loan. Use the prepayment calculator to try other payments.
Frequently asked questions
What is the EMI for a ₹25 lakh home loan for 20 years?
₹20,911 each month at 8.00%. At 7.50%, the EMI is ₹20,140. At 9.00%, the EMI is ₹22,493.
How much down payment do I need for a ₹25 lakh home loan?
A minimum of ₹2.78 lakh, because RBI limits this loan to 90% of the property value. You also pay stamp duty and registration. These costs are not part of the property value.
What salary do I need for a ₹25 lakh home loan?
Approximately ₹41,822 each month (net income) for 20 years at 8.00%, if you have no other EMIs. For a 30-year tenure, the income is approximately ₹36,688.
Why is my bank's EMI slightly different?
Banks calculate the EMI with different methods. Some banks calculate interest for each day. The difference is usually only some rupees. Refer to the cause of the difference.
EMI for other loans
- ₹10 lakh home loan₹8,364 a month
- ₹15 lakh home loan₹12,547 a month
- ₹20 lakh home loan₹16,729 a month
- ₹30 lakh home loan₹25,093 a month
- ₹35 lakh home loan₹29,275 a month
- ₹40 lakh home loan₹33,458 a month
- ₹45 lakh home loan₹37,640 a month
- ₹50 lakh home loan₹41,822 a month
- ₹60 lakh home loan₹50,186 a month
- ₹70 lakh home loan₹58,551 a month
- ₹80 lakh home loan₹66,915 a month
- ₹1 crore home loan₹83,644 a month