If you too are thinking of taking a home loan of ₹ 1 crore from SBI to buy your house, first understand your salary. How much can your EMI vary with bank interest rates and loan tenure? Know how much you have to earn and where expenses will increase.
If you are planning to take a home loan of ₹ 1 crore from SBI to buy your own house, first understand your salary and EMI calculation. The bank’s starting interest rate is 7.50%. At this rate, an EMI of ₹80,559 per month will be paid for a loan of ₹1 crore for 20 years. But the question is how much should be your salary to take such a big loan?
SBI hikes home loan interest rate: SBI has increased its External Benchmark Lending Rate (EBLR) by 0.25% from 15 October 2026. Now the bank’s general home loan interest rates are between 7.50% to 8.80%. The interest rate you will get for the loan will depend on your profile and credit score.
How much will be the EMI on a loan of ₹1 crore?: If you take a home loan of ₹1 crore for 20 years, the EMI at 7.50% interest will be around ₹80,559. While at 8.25% interest the EMI will be ₹85,207 and at 8.80% will be ₹88,690. That means there is a difference of around ₹8,100 per month between the lowest and highest interest rates.
How much relief on taking a loan for 30 years?: If the loan tenure is extended from 20 to 30 years, the EMI at 7.50% interest will come down to ₹69,921. While at 8.25% the EMI will be ₹75,127 and at 8.80% will be ₹79,027.
However, the interest burden increases in the long run. At the rate of 7.50%, around ₹93.3 lakh interest will have to be paid in 20 years, while in 30 years this amount will be around ₹1.52 crore. That means additional interest of around ₹ 58 lakh will have to be paid.
How much salary is required for ₹1 crore home loan?: Banks look at how much of your earnings will go towards EMIs before giving a loan. It is called FOIR. According to Bajaj Finserv, most banks cap EMI at 40-45% of income for large loans.
For a 20-year loan at 7.50% interest if the EMI is 50% of your salary, an in-hand salary of around ₹1.61 lakh per month would be required. A salary of ₹ 1.79 lakh at 45% limit and around ₹ 2.01 lakh at 40% would be required.
Keep these things in mind before taking a loan: If car or personal loan EMIs are already going on, your ability to take a home loan may be reduced. So be sure to ask your actual interest rate from the bank and check the credit score. Also understand whether your EMI or loan tenure will increase as the interest rate increases. All these figures are based on the assumption of one applicant, no other loans and the interest rate remains constant throughout the term.
Disclaimer:
This article is prepared for informational purposes only. This should not be considered as any kind of investment or share buying and selling advice. Always consult your certified financial advisor before investing in the market.
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