At 8.5% annual interest over 15 years (180 months), the EMI for a ₹50 lakh loan is approximately ₹49,236 per month. The total interest paid over the full tenure would be around ₹38,62,480. This is a significant interest cost, which is why many borrowers make prepayments whenever possible to reduce the outstanding principal.

With an EMI of approximately ₹49,236, lenders would typically require a net monthly income of at least ₹1,00,000-₹1,25,000 to keep the EMI within the 40-50% threshold. If you have a co-applicant, combined income is considered. A higher income, strong credit score, and minimal existing debt improve your chances of approval at favorable rates.

If your loan interest rate is higher than your expected investment returns (after tax), prepaying the loan is generally more beneficial. For example, prepaying a loan at 8.5% provides a guaranteed 8.5% return on that money. However, maintaining an emergency fund and maximizing tax-advantaged investments should take priority before making large prepayments.