Explanation:

- The principal amount of the loan is 20 lakh rupees.

- The simple interest rate is 5% per annum.

- Annual interest = Principal × Rate = 20,00,000 × 5% = 1,00,000 rupees.

- Monthly rent received from the house is 25,000 rupees.

- Annual rent income = 25,000 × 12 = 3,00,000 rupees.

- Amount put toward repaying the interest and loan annually is 3,00,000 rupees.

- After paying 1,00,000 rupees as interest, 2,00,000 rupees is left to pay off the principal.

- The total principal of 20,00,000 rupees will take 20,00,000 / 2,00,000 = 10 years to repay completely.

The correct answer is Option 1: 10 years.