The EMI on a ₹40 lakh home loan is ₹31,980 a month over 20 years at 7.40% p.a., the lowest starting rate among large banks in October 2026 (Bank of Baroda, Canara Bank, Union Bank of India). Over 30 years it falls to ₹27,695; at 8.50%, a typical rate for a lower credit score, the 20-year EMI is ₹34,713.
₹40 lakh home loan EMI by tenure and rate
| Tenure | 7.40% | 8.00% | 8.50% | 9.00% | 9.50% |
|---|---|---|---|---|---|
| 5 years | ₹79,962 | ₹81,106 | ₹82,066 | ₹83,033 | ₹84,007 |
| 10 years | ₹47,272 | ₹48,531 | ₹49,594 | ₹50,670 | ₹51,759 |
| 15 years | ₹36,854 | ₹38,226 | ₹39,390 | ₹40,571 | ₹41,769 |
| 20 years | ₹31,980 | ₹33,458 | ₹34,713 | ₹35,989 | ₹37,285 |
| 25 years | ₹29,300 | ₹30,873 | ₹32,209 | ₹33,568 | ₹34,948 |
| 30 years | ₹27,695 | ₹29,351 | ₹30,757 | ₹32,185 | ₹33,634 |
Monthly EMI on ₹40 lakh, reducing-balance method. Each column is a fixed annual rate for the full tenure.
₹40 lakh home loan EMI at each bank
| Bank | Starting rate | EMI, 20 years | Total interest, 20 years |
|---|---|---|---|
| Bank of Baroda | 7.40% | ₹31,980 | ₹36,75,100 |
| Canara Bank | 7.40% | ₹31,980 | ₹36,75,100 |
| Union Bank of India | 7.40% | ₹31,980 | ₹36,75,100 |
| Central Bank of India | 7.45% | ₹32,102 | ₹37,04,371 |
| Punjab National Bank | 7.45% | ₹32,102 | ₹37,04,371 |
| State Bank of India | 7.50% | ₹32,224 | ₹37,33,695 |
| Kotak Mahindra Bank | 7.60% | ₹32,469 | ₹37,92,501 |
| Axis Bank | 8.00% | ₹33,458 | ₹40,29,825 |
| HDFC Bank | 8.00% | ₹33,458 | ₹40,29,825 |
| ICICI Bank | 8.75% | ₹35,348 | ₹44,83,623 |
Starting rates from each bank's official rate page, checked 26 October 2026. Starting rates go to borrowers with high credit scores; your offer depends on CIBIL score, income type and loan amount. The RBI raised the repo rate to 5.50% on 7 October 2026.
Property value and down payment for a ₹40 lakh loan
RBI rules cap a housing loan above ₹30 lakh and up to ₹75 lakh at 80% of the property value. To borrow ₹40 lakh, the property must be worth at least ₹50,00,000, so the down payment is at least ₹10,00,000. Stamp duty and registration are extra and are not funded by the loan.
Salary needed for a ₹40 lakh home loan
| Tenure | EMI at 7.40% | Net monthly income if EMI is 50% of income | If EMI is 60% of income |
|---|---|---|---|
| 15 years | ₹36,854 | ₹73,707 | ₹61,423 |
| 20 years | ₹31,980 | ₹63,959 | ₹53,299 |
| 25 years | ₹29,300 | ₹58,600 | ₹48,833 |
| 30 years | ₹27,695 | ₹55,390 | ₹46,159 |
Lenders usually keep all EMIs, including this one, within 50–60% of net monthly income for salaried borrowers; existing EMIs reduce the amount you qualify for.
Total cost of a ₹40 lakh home loan
| Tenure | EMI | Total interest | Total repaid |
|---|---|---|---|
| 10 years | ₹47,272 | ₹16,72,664 | ₹56,72,664 |
| 15 years | ₹36,854 | ₹26,33,640 | ₹66,33,640 |
| 20 years | ₹31,980 | ₹36,75,100 | ₹76,75,100 |
| 25 years | ₹29,300 | ₹47,89,986 | ₹87,89,986 |
| 30 years | ₹27,695 | ₹59,70,269 | ₹99,70,269 |
Paying an extra 5% of the loan (₹2,00,000) once a year on a 20-year loan at 7.40% saves ₹19,81,993 in interest and ends the loan 120 months early. Floating-rate home loans to individuals carry no prepayment penalty.
Tax benefit on a ₹40 lakh home loan
In year 1 at 7.40% over 20 years you pay about ₹2,92,962 as interest and ₹90,793 as principal. Under the old tax regime, interest on a self-occupied home is deductible up to ₹2 lakh a year and principal repayment up to ₹1.5 lakh a year (Sections 24(b) and 80C of the Income-tax Act, 1961; the same limits continue under the Income-tax Act, 2025 from tax year 2026-27). The new tax regime does not allow these deductions for a self-occupied home.
Work out your own figure with the home loan EMI calculator or the prepayment calculator, and compare offers on the home loan interest rates page.
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