The EMI for a ₹10 lakh loan at 10% annual interest over 5 years is approximately ₹21,247 per month. Over the full 60-month tenure, you'd pay about ₹2,74,880 in total interest. Opting for a 3-year tenure instead raises the EMI to around ₹32,267 but reduces total interest to approximately ₹1,61,600.

Most lenders require that your EMI does not exceed 40-50% of your net monthly income. For an EMI of ₹21,247 (5-year tenure at 10%), you'd typically need a net monthly income of at least ₹42,000-₹53,000. Lenders also consider your existing debt obligations and credit score during the approval process.

A 3-year tenure saves you about ₹1,13,000 in interest but requires EMIs that are roughly ₹11,000 higher per month. If your budget can handle the higher payment, the shorter tenure is more economical. If not, a 5-year tenure with occasional prepayments offers a good compromise between affordability and interest savings.