How many years does it take to repay 50% of a home loan? This number may surprise you

Have you ever wondered how many years it takes to repay 50% of a home loan? This duration depends on a number of factors, including loan tenure, interest rate, prepayment or increase in the EMI amount etc. As a standard home loan involves a long-term financial commitment from your end, here the maths may both surprise and enlighten you.

But before we help you understand it, let’s us understand a bit about home loan amortization schedule

After you take a home loan, you need to service this debt by way of monthly equated monthly installments or EMIs and this EMI covers both the principal as well as interest amount. Now, here is where the home loan amortization schedule comes into play and clearly defines what you are paying for and at what time, helping you in your financial journey of becoming debt-free.

**Understanding the maths in respect of 50% home loan repayment **

Suppose, you have taken a ₹50 lakh home loan at 8.5% rate of interest and look to service it in 20 years then as per the amortization schedule below it will take nearly 165 months or 13.75 years to pay off 50% of the home loan principal amount.

This is because in the initial years of loan repayment, most of the EMI paid (up to 80%) goes towards meeting the interest component of the loan, while only a small amount goes towards clearing the principal obligation.

So, roughly it takes nearly 70% of the total tenure in servicing the first 50% of the home loan amount.