Archive · 30 Aug 2026
Higher Rates Add Nearly ₹46 Lakh to Home-Loan Costs
A home loan is money borrowed to buy a house, and it must be paid back with interest.
For a ₹1 crore loan lasting 20 years, the interest rate makes a big difference.
At 7%, the monthly payment is about ₹77,530.
At 10%, it becomes about ₹96,501 each month.
The total interest also rises from roughly ₹86 lakh to ₹1.32 crore.
That is nearly ₹46 lakh more in interest.
The final rate can depend on a borrower’s credit score, repayment history, and the lender’s rules.
Borrowers should compare different loan offers and understand all fees and conditions.
A financial advisor may help them plan the repayments.
A ₹1 crore, 20-year home loan costs about ₹86.07 lakh in interest at 7%.
At 10%, the same loan’s total interest rises to approximately ₹1.32 crore.
The monthly EMI increases from about ₹77,530 at 7% to ₹96,501 at 10%.
Public-sector-bank home-loan rates above ₹75 lakh range from 7.00% to 10.75%.
Borrowers are advised to compare effective rates, fees, terms, credit requirements, and total repayment costs.
- Who
- People seeking fresh home loans of ₹1 crore or more, along with public-sector-bank borrowers.
- What
- The article explains how interest-rate changes affect EMIs, total interest, and repayment costs for a 20-year home loan.
- When
- The listed public-sector-bank rates are stated to be current as of 26 August 2026.
- Where
- The comparison covers prominent public-sector banks in India.
- Why
- Even small changes in interest rates can add several lakhs to borrowing costs, so borrowers are urged to compare offers and assess their credit profiles.
- Example loan
- ₹1 crore over 20 years
- EMI at 7%
- Approximately ₹77,530 per month
- Total interest at 7%
- Approximately ₹86.07 lakh
- EMI at 10%
- Approximately ₹96,501 per month
- Total interest at 10%
- Approximately ₹1.32 crore
- Interest-cost difference
- Approximately ₹45.93 lakh, or nearly ₹46 lakh
- Public-sector-bank rate range
- 7.00% to 10.75% for home loans above ₹75 lakh
- Rate reference date
- 26 August 2026