Mera Ghar Mera Ashiana Scheme

As the title suggests, this is about the loan terms. My loan of 4 million has been approved, and I’m currently looking for a house.

According to the loan’s terms and conditions, the interest rate will be 5%. However, when I asked the banker about the monthly installment, he said it would be around 43,000, which comes to approximately 516,000 per year. Over the full loan term, this seems to result in paying around 29% more than the original loan amount.

I want to understand how this works. If the interest rate is 5%, how are they effectively charging around 29% extra on the actual loan amount?