A home loan tenure plays a significant role in determining both monthly repayments and the overall borrowing cost. While a longer tenure can reduce the monthly EMI burden, it often increases the total interest paid over the life of the loan.
For a ₹60 lakh home loan at an interest rate of 9%, the difference between a 20-year and 25-year tenure is notable. Comparing both options using an EMI calculator can help borrowers understand the trade-off between affordability and total repayment.
This comparison considers a loan amount of ₹60,00,000 with an interest rate of 9% per annum. The two repayment tenures evaluated are 20 years and 25 years, while all other loan parameters remain unchanged.
Even though the tenure difference is only 5 years, it has a significant impact on EMI obligations and total interest costs. Understanding these figures can help borrowers assess the long-term financial implications of their repayment plan.
A borrower opting for a 25-year tenure would have a monthly EMI of ₹50,352. Over the repayment period, the total interest payable amounts to ₹91,05,535, taking the total repayment to ₹1,51,05,535.
The lower EMI may appear more manageable from a monthly budgeting perspective. However, the extended tenure results in interest being charged for a longer duration, substantially increasing the overall cost of the loan.
Reducing the loan tenure to 20 years increases the monthly EMI to ₹53,984. Under this option, the total interest payable falls to ₹69,56,054, while the total repayment amount declines to ₹1,29,56,054.
The EMI rises by a relatively modest amount compared to the 25-year option. At the same time, the shorter repayment period significantly reduces cumulative interest expenses.
The difference between the two options becomes evident when the repayment figures are compared.
| Particulars | 25 Years | 20 Years |
| EMI | ₹50,352 | ₹53,984 |
| Total Interest | ₹91,05,535 | ₹69,56,054 |
| Total Amount Payable | ₹1,51,05,535 | ₹1,29,56,054 |
Choosing a 20-year tenure increases the EMI by ₹3,632 per month. However, the loan is repaid 5 years earlier and total interest savings amount to ₹21,49,481. This reduction also lowers the overall repayment amount by the same value, highlighting the impact of loan tenure on borrowing costs.
Read More: How Investing ₹16,000 Per Month Can Grow to ₹3.04 Crore in 25 Years?
Want to read stock market updates in Hindi? Angel One News gives comprehensive share market news in Hindi.
The comparison shows that loan tenure can significantly influence the total cost of a home loan. For a ₹60 lakh loan at 9%, a 25-year tenure results in an EMI of ₹50,352 and total interest of ₹91,05,535.
Reducing the tenure to 20 years raises the EMI to ₹53,984 but lowers total interest to ₹69,56,054. The shorter tenure therefore offers interest savings of ₹21,49,481 while enabling the borrower to become debt-free 5 years earlier.
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.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jul 2, 2026, 5:25 PM IST
Akshay Shivalkar
Akshay Shivalkar is a financial content specialist who strategises and creates SEO-optimised content on the stock market, mutual funds, and other investment products. With experience in fintech and mutual funds, he simplifies complex financial concepts to help investors make informed decisions through his writing.
Know MoreWe're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
