20 Lakh Home Loan EMI and Interest

To calculate the loan EMI (Equated Monthly Instalment) for a 20 lakh home loan, here we will take 8.40% p.a as the current lowest interest rate with different loan tenure such as 10 year, 15 years and 20 years etc. For 20 Lakh home loan there will be fixed monthly payment that you'll make to the lender as repayment of the loan over the chosen tenure.

20 Lakh Home Loan EMI and Interest

The lowest home loan interest rate is 8.40% p.a. Here is how your 20 Lakh home loan EMI will be with different tenure options.

Loan AmountTenureEMI Amount
Rs. 20 Lakh5 YearsRs. 20468
Rs. 20 Lakh10 YearsRs. 12345
Rs. 20 Lakh15 YearsRs. 9789
Rs. 20 Lakh20 YearsRs. 8615
Rs. 20 Lakh25 YearsRs. 7985
Rs. 20 Lakh30 YearsRs. 7618

The formula to calculate home loan EMI is:

EMI = [P * r * (1 + r)^n] / [(1 + r)^n – 1]


EMI = Equated Monthly Installment
P = Loan amount (principal)
r = Monthly interest rate
n = Loan tenure in months

Let’s assume the annual interest rate is 8.40% p.a. and the loan tenure is 20 years. Using these values, we can calculate the EMI for a 20 lakh home loan:

P = Rs. 20,00,000 (20 lakh)
r = (8.40 / 12) / 100 = 0.007 (monthly interest rate)
n = 240 (loan tenure in months)
EMI = [20,00,000 * 0.007 * (1 + 0.007)^240] / [(1 + 0.007)^240 – 1]
EMI = Rs. 17,230/-
Total Amount = Rs. 41,35,222/-
Interest = Rs. 21,35,222/-

So, the EMI for a 20 lakh home loan at an annual interest rate of 8.40% and a loan tenure of 20 years (240 months) Rs. 17,230/- per month.

Compare 20 Lakh Home loan EMI for 15 Years

Lowest Interest RateBank NameEMI for 20 Lakh
8.4% p.a.HDFC Rs. 19580/-
8.4% p.a.LIC Rs. 19580/-
8.5% p.a.AXIS Rs. 19700/-
8.5% p.a.IDBI Rs. 19700/-
8.75% p.a.UNION Rs. 19980/-
8.85% p.a.BARODA Rs. 20100/-
9.15% p.a.SBI Rs. 20460/-
9.15% p.a.ICICI Rs. 20460/-
9% p.a.PNB Rs. 20280/-
9% p.a.CANARA Rs. 20280/-

Home loan interest rates vary from bank to bank, here you can compare home loan emi for 20 lakh loan amount for tenure of 15 years with respect to the bank’s interest rate. To check different loan tuners and interest use home loan emi calculator.

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Things to Consider while Taking 20 Lakh Home Loan

  • Investment Goals: Clarify your investment goals. Are you purchasing the flat solely for investment purposes or do you plan to live in it at some point? Your goals will influence your decision-making process.
  • Rental Income: If you’re buying the flat as an investment property, consider the potential rental income. Research the local rental market to understand the average rental rates in the area and evaluate whether the rental income can cover your EMI and other expenses.
  • Capital Appreciation: As an investor, capital appreciation is a significant factor. Research the historical and projected property price trends in the area. Ensure that the property has the potential to appreciate over time.
  • Location: The location of the property plays a crucial role in its investment potential. Choose a location with good connectivity, amenities, and growth prospects.
  • Loan Interest Rates: Research and compare home loan interest rates offered by various lenders. A lower interest rate can significantly impact your overall borrowing cost.
  • Loan Tenure: Choose a loan tenure that aligns with your investment horizon. A longer tenure might lead to lower EMIs but higher overall interest payments.
  • Down Payment: Determine the down payment required for the property. As an investor, be prepared to pay a significant down payment to minimize your loan amount and EMI burden.
  • EMI Affordability: Calculate the EMI for the 20 lakh home loan and ensure it fits well within your budget. Consider potential fluctuations in rental income and market conditions.
  • Tax Benefits: Understand the tax benefits available on home loans for investors. You can claim deductions on both the interest paid and the principal repaid under Section 24(b) and Section 80C of the Income Tax Act, respectively.
  • Risks: Consider the risks associated with real estate investments, such as market fluctuations, liquidity issues, and maintenance costs. Have a contingency plan in place to manage these risks.
  • Loan Prepayment: Evaluate the option to prepay the loan partially or fully. Some loans have prepayment penalties, so understand the terms and conditions related to prepayment.
  • Rental Yield: Calculate the rental yield, which is the annual rental income divided by the property’s cost. This metric can help you assess the income potential of the investment.
  • Market Research: Conduct thorough market research to understand the demand and supply dynamics in the area. Analyze vacancy rates, rental demand, and property inventory.
  • Legal Due Diligence: Engage legal professionals to perform due diligence on the property’s legal and regulatory aspects. Ensure that the property has clear titles and is free from legal disputes.
  • Property Management: If you plan to rent out the property, consider property management services to handle tenant-related issues, maintenance, and repairs.
  • Exit Strategy: Have a clear exit strategy in place. Determine when and how you plan to exit the investment—whether through resale, continued rental, or other means.
  • Budget for Additional Expenses: Aside from the EMI, budget for other expenses like property taxes, maintenance charges, insurance, and any unforeseen costs.
  • Loan Processing Time: Be aware of the expected timeline for loan approval and disbursement. This can impact your ability to close the deal on time.
  • Financial Advisor Consultation: Consult with a financial advisor who specializes in real estate investments. They can provide personalized advice based on your financial goals and risk tolerance.
  • Realistic Expectations: Have realistic expectations about the investment’s returns and potential challenges. Real estate is a long-term investment, and outcomes may take time.