EMI Calculator: Here’s How Much Interest You Will Pay on a ₹10 Lakh Loan

Taking a loan is a major financial decision, whether it’s for buying a home, a car, or meeting personal needs. While most borrowers focus on the monthly EMI, the total interest paid over the loan tenure can be surprisingly high. Understanding this interest is key to planning your finances wisely.

In this blog, we’ll break down a ₹10 lakh loan at 9% interest over 10 years and show you exactly how much interest you’ll pay.

How Much Interest You Will Pay on ₹10 Lakh?

Let’s look at a real example:

• Loan Amount: ₹10,00,000
• Interest Rate: 9% per annum
• Loan Duration: 10 years (120 months)
• EMI: ₹12,668 per month
• Principal Amount: ₹10,00,000
• Total Interest Paid: ₹5,20,109
• Total Amount Payable: ₹15,20,109

This means that over 10 years, you’ll pay more than half of your original loan amount in interest alone. You can use EMI calculator to assess different loan scenarios.

Importance of Interest

Why is understanding interest so important?

1. Interest can double your repayment: As seen in the example, a ₹10 lakh loan ends up costing ₹15.2 lakh because of interest.
2. Longer tenures increase interest: Extending the loan duration reduces the monthly EMI but increases the total interest paid.
3. Helps you make informed decisions: Knowing the total interest helps you compare lenders, choose shorter tenures, and even plan prepayments to save money.

Conclusion

While a ₹10 lakh loan may seem manageable with an EMI of ₹12,668, the total interest over 10 years adds up to ₹5.2 lakh. Being aware of this helps you make smarter financial choices, such as negotiating better interest rates, prepaying whenever possible, or opting for a shorter loan tenure. Understanding your loan’s interest is the first step toward financial freedom. The better you plan, the less you pay in the long run.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.