Save money3 min read · Updated 17 October 2026
Home loan tenure: 15, 20, 25 or 30 years? The real cost of each
How the tenure you pick changes your EMI and the total interest on a ₹50 lakh home loan, why a longer tenure costs lakhs more, and how to keep the choice flexible.
The cost of each tenure on ₹50 lakh
These figures are for a ₹50 lakh loan at 8.5% with the rate unchanged.
| Tenure | EMI | Total interest | Total paid |
|---|---|---|---|
| 10 years | ₹61,993 | ₹24,39,141 | ₹74,39,141 |
| 15 years | ₹49,237 | ₹38,62,656 | ₹88,62,656 |
| 20 years | ₹43,391 | ₹54,13,879 | ₹1,04,13,879 |
| 25 years | ₹40,261 | ₹70,78,406 | ₹1,20,78,406 |
| 30 years | ₹38,446 | ₹88,40,443 | ₹1,38,40,443 |
At 30 years you pay more interest than the amount you borrowed. At 15 years the interest is less than the loan.
Why a longer tenure costs so much
Interest is charged on what you still owe. With a long tenure you repay principal slowly, so the balance stays high for longer and interest keeps building on it. In the early years of a 30-year loan, almost all of each EMI goes to interest.
How to pick
- Choose the shortest tenure whose EMI you can pay comfortably, with room if your income dips or rates rise. See What if rates rise?.
- If you need a long tenure to qualify, take it and plan to prepay. You can shorten it later, but you cannot easily lengthen it.
- Keep the retirement date in mind. Lenders usually want the loan to end by about retirement age.
Keep it flexible with prepayment
A 25-year loan with an extra EMI paid each year ends years earlier. See the extra EMI trick and Pay off sooner. You get the lower EMI as a safety net and the savings of a shorter loan when you can afford it.
Common questions
What is the best tenure for a home loan?
The shortest tenure with an EMI you can pay comfortably. A shorter tenure saves a lot of interest. A longer one gives a lower EMI and a bigger eligible loan.
Is a 30-year home loan a bad idea?
Not always. It lowers the EMI, but it can cost more in interest than the amount you borrowed. If you take it, plan to prepay when your income grows.
Can I change my home loan tenure later?
Usually yes, by asking your lender. Shortening it through prepayment is easy. Extending it may need the lender's approval and may cost a fee.