40 Lakh Home Loan EMI and Interest

To calculate the loan EMI (Equated Monthly Instalment) for a 40 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 40 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.

40 Lakh Home Loan EMI and Interest

The lowest home loan interest rate is 8.40% p.a. Here is how your 40 Lakh home loan EMI will be with different tenure options.

Loan AmountTenureEMI Amount
Rs. 40 Lakh5 YearsRs. 20468
Rs. 40 Lakh10 YearsRs. 12345
Rs. 40 Lakh15 YearsRs. 9789
Rs. 40 Lakh20 YearsRs. 8615
Rs. 40 Lakh25 YearsRs. 7985
Rs. 40 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 (annual interest rate divided by 12 and then divided by 100)
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 40 lakh home loan:

P = Rs. 40,00,000 (40 lakh)
r = (8.40 / 12) / 100 = 0.007 (monthly interest rate)
n = 240 (loan tenure in months)
EMI = [40,00,000 * 0.007 * (1 + 0.00667)^240] / [(1 + 0.00667)^240 – 1]
EMI = Rs. 34,460/-
Total Amount = Rs. 82,70,443/-
Interest = Rs. 42,70,443/-

So, the EMI for a 40 lakh home loan at an annual interest rate of 8.40% and a loan tenure of 20 years (240 months) is Rs. 34,460/-

Compare 40 Lakh Home loan EMI for 15 Years

EMI for 40 LakhBank NameLowest Interest Rate
Rs. 39160/-HDFC 8.4% p.a.
Rs. 39160/-LIC 8.4% p.a.
Rs. 39400/-AXIS 8.5% p.a.
Rs. 39400/-IDBI 8.5% p.a.
Rs. 39960/-UNION 8.75% p.a.
Rs. 40200/-BARODA 8.85% p.a.
Rs. 40920/-SBI 9.15% p.a.
Rs. 40920/-ICICI 9.15% p.a.
Rs. 40560/-PNB 9% p.a.
Rs. 40560/-CANARA 9% p.a.

Home loan interest rates vary from bank to bank, here you can compare home loan emi for 40 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 40 Lakh Home Loan

  • Loan Eligibility: Assess your eligibility for a 40 lakh home loan based on your income, credit score, and existing financial obligations. Lenders have specific criteria for determining loan eligibility.
  • Interest Rates: Research and compare interest rates offered by different lenders. Even a slight 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 that aligns with your repayment capacity and financial goals. A longer tenure might result in lower monthly EMIs but could lead to higher overall interest payments.
  • EMI Affordability: Calculate the equated monthly installment (EMI) for the 40 lakh loan and ensure that it fits comfortably within your monthly budget. Avoid overextending yourself financially.
  • Down Payment: Determine the down payment required for the property. Ensure you have the necessary funds available for the down payment, along with any associated costs like registration fees, stamp duty, and legal charges.
  • Property Value: Make sure that the loan amount aligns with the property’s value. Lenders often have specific loan-to-value (LTV) ratios that you need to adhere to.
  • Additional Costs: Factor in other expenses such as processing fees, administrative charges, insurance costs, and any other charges associated with the loan.
  • Credit Score: A good credit score enhances 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 offer flexible repayment options like step-up or step-down EMIs, which might suit 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 aligns with your long-term financial goals. Evaluate whether taking on a substantial loan at this stage is in line 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 help you 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.
  • Loan Processing Time: Inquire about the expected time frame for loan approval and disbursement. This can be crucial if you have a specific timeline for purchasing the property.