INCOME TAX19 Oct 2026
Higher EMI or longer tenure after a home loan rate rise
A 25-basis-point rise in home loan rates leaves borrowers choosing between a bigger EMI and a longer tenure. On a ₹50 lakh, 20-year loan, going from 8.5% to 8.75% adds ₹795 a month. Paying it keeps total interest near ₹56.05 lakh; stretching the tenure 12-13 months takes total repayment to ₹59.41 lakh. The call rests on income stability, other commitments and years left on the loan.
Key Statutory Highlights
- On a ₹50 lakh loan over 20 years, a rise from 8.5% to 8.75% lifts the monthly EMI from ₹43,391 to ₹44,186, or ₹795 more.
- Paying the higher EMI over the original 20 years raises total interest to about ₹56.05 lakh, up from ₹54.14 lakh before the rate rise.
- Holding the EMI flat and extending the tenure by 12-13 months instead takes the total amount repayable to ₹59.41 lakh, says Godrej Housing Finance's Mehernosh Tata.
Actionable Advice for Taxpayers / Founders:Ask your lender for a revised repayment schedule showing the EMI, remaining tenure and total interest payable under both options.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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