25 Lakh Home Loan EMI and Interest

To calculate the loan EMI (Equated Monthly Instalment) for a 25 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 25 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.

25 Lakh Home Loan EMI and Interest

The lowest home loan interest rate is 8.40% p.a. Here is how your 25 Lakh home loan EMI will be with different tenure options.

Loan AmountTenureEMI Amount
Rs. 25 Lakh5 YearsRs. 20468
Rs. 25 Lakh10 YearsRs. 12345
Rs. 25 Lakh15 YearsRs. 9789
Rs. 25 Lakh20 YearsRs. 8615
Rs. 25 Lakh25 YearsRs. 7985
Rs. 25 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% and the loan tenure is 20 years (240 months). Using these values, we can calculate the EMI for a 25 lakh home loan:

P = Rs. 25,00,000 (25 lakh)
r = (8.40 / 12) / 100 = 0.007 (monthly interest rate)
n = 240 (loan tenure in months)
EMI = [25,00,000 * 0.007 * (1 + 0.007)^240] / [(1 + 0.007)^240 – 1]
EMI = Rs. 21,538/-
Total Amount = Rs. 51,69,027/-
Interest = Rs. 26,69,027/-

So, the EMI for a 25 lakh home loan at an annual interest rate of 8.40% and a loan tenure of 20 years (240 months) is Rs. 21,538/- per month.

Compare 25 Lakh Home loan EMI for 15 Years

Lowest Interest RateBank NameEMI for 25 Lakh
8.4% p.a.HDFC Rs. 24475/-
8.4% p.a.LIC Rs. 24475/-
8.5% p.a.AXIS Rs. 24625/-
8.5% p.a.IDBI Rs. 24625/-
8.75% p.a.UNION Rs. 24975/-
8.85% p.a.BARODA Rs. 25125/-
9.15% p.a.SBI Rs. 25575/-
9.15% p.a.ICICI Rs. 25575/-
9% p.a.PNB Rs. 25350/-
9% p.a.CANARA Rs. 25350/-

Home loan interest rates vary from bank to bank, here you can compare home loan emi for 25 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 25 Lakh Home Loan

  • Loan Eligibility: Determine your eligibility for a 25 lakh home loan based on your income, credit score, and other financial obligations. Different lenders have specific criteria for qualifying borrowers.
  • Interest Rates: Research and compare interest rates offered by various lenders. Even a small difference in interest rates can significantly impact the overall cost of the loan. Consider whether the interest rate is fixed or floating.
  • Loan Tenure: Choose an appropriate loan tenure based on your repayment capacity. A longer tenure may lead to lower monthly EMIs but could result in higher interest payments over the life of the loan.
  • EMI Affordability: Calculate the equated monthly installment (EMI) for the 25 lakh loan and ensure that it fits comfortably within your monthly budget. Avoid stretching your finances too thin.
  • Down Payment: Determine the down payment required for the property. Ensure you have the necessary funds available for the down payment, as well as any additional costs such as registration fees, stamp duty, and legal charges.
  • Property Value: Ensure that the loan amount aligns with the property’s value. Lenders typically have specific loan-to-value (LTV) ratios that you must adhere to.
  • Additional Costs: Account for other expenses such as processing fees, administrative charges, insurance costs, and any other charges associated with the loan.
  • Credit Score: A good credit score improves your chances of securing a loan with favorable terms. Check your credit score and take steps to improve it if necessary before applying for the loan.
  • Repayment Plan: Evaluate the repayment plan offered by the lender. Some lenders provide flexible repayment options like step-up or step-down EMIs, which might align better with your financial situation.
  • Prepayment and Foreclosure: Understand the terms and conditions related to prepayment and foreclosure. Some loans have penalties for early repayment, while others allow you to pay off the loan early without penalties.
  • Documentation: Ensure that you have all the necessary documentation, such as income proof, identity proof, address proof, property documents, and more, ready for the loan application process.
  • Future Financial Goals: Consider how this home loan fits into your long-term financial goals. Evaluate whether taking on a substantial loan aligns with your broader objectives.
  • Property Location and Type: Consider the location and type of property you’re purchasing. The property’s value, potential for appreciation, and legal aspects can impact your decision.
  • Legal and Regulatory Aspects: Ensure that the property you’re considering is legally sound and complies with all local regulations. Engage legal professionals to assist with due diligence.
  • Market Trends: Consider the current real estate market trends in the area where you’re purchasing the property. This can influence property prices and your investment’s potential.
  • Resale and Rental Value: Evaluate the property’s resale and rental potential. This can impact your decision if you plan to sell or rent out the property in the future.