Home Loan EMI Calculator
Calculate your home loan EMI, total interest, and prepayment benefits. Get detailed amortization schedule and compare different interest rates.
Loan Details
Total cost of the property
Amount: ₹10,00,000
Amount you need to borrow
Current rates: SBI 8.25%, HDFC 8.35%, ICICI 8.40%
Loan repayment period
Fee: ₹0
Excellent LTV - Better rates possible
Monthly EMI
₹0
Pay this amount every month for 20 years
Loan Summary
Payment Breakdown
Prepayment Calculator
See how extra payments can reduce your loan tenure and save interest
Additional amount paid annually
Year-by-Year Amortization Schedule
| Year | Opening Balance | EMI Paid | Principal Paid | Interest Paid | Closing Balance |
|---|
Interest Rate Comparison
Tax Benefits on Home Loans in India
Section 80C - Principal Repayment
Deduction up to ₹1.5 lakh per year on principal repayment (including registration and stamp duty costs in the first year)
Section 24 - Interest Payment
Deduction up to ₹2 lakh per year on interest payment for self-occupied property. No upper limit for let-out property (entire interest deductible)
Section 80EEA - Additional Deduction
Additional deduction of ₹1.5 lakh on interest for first-time home buyers (property value up to ₹45 lakh, loan sanctioned between April 2019 - March 2022)
Total Tax Benefit: Up to ₹3.5 lakh per year (₹1.5L principal + ₹2L interest) for regular buyers, or ₹5 lakh for eligible first-time buyers
Understanding Home Loans
What is EMI?
EMI (Equated Monthly Installment) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs consist of both principal and interest components.
Fixed vs Floating Interest Rates
- Fixed Rate: Interest rate remains constant throughout the loan tenure. Provides certainty but usually starts higher (currently 9.5% - 10.5%)
- Floating Rate: Interest rate changes with market conditions. Currently lower (8.25% - 9%) but can increase
- Recommendation: Floating rates are generally better for long-term loans (15+ years) as they average out lower over time
Current Home Loan Rates (February 2026)
- SBI: 8.25% - 8.80% (lowest for women borrowers)
- HDFC Bank: 8.35% - 8.95%
- ICICI Bank: 8.40% - 9.00%
- Axis Bank: 8.50% - 9.10%
- Kotak Mahindra: 8.45% - 9.05%
Home Loan Eligibility Criteria
- Age: 21-65 years (varies by bank)
- Income: Minimum ₹25,000/month for salaried, ₹2 lakh/year profit for self-employed
- Credit Score: Minimum 750 for best rates (650+ acceptable)
- EMI to Income Ratio: Should not exceed 50% of monthly income
- Employment: Minimum 2-3 years work experience, 1 year in current organization
Documents Required
- Identity proof (Aadhaar, PAN, Passport)
- Address proof (Aadhaar, Utility bills)
- Income proof (Salary slips, IT returns, bank statements)
- Property documents (Sale agreement, NOC, approved plans)
- Bank statements (last 6 months)
- Photographs (passport size)
Prepayment Rules
- Floating Rate Loans: No prepayment charges (as per RBI guidelines)
- Fixed Rate Loans: Prepayment charges typically 2-3% of outstanding amount
- Strategy: Prepay during initial years when interest component is high
- Frequency: Most banks allow prepayment quarterly or annually
Frequently Asked Questions
1. How much home loan can I get on ₹50,000 salary?
With ₹50,000 monthly salary, you can typically get a home loan of ₹35-40 lakhs (assuming no other EMIs). Banks use 60x monthly income as a rough guide, but final amount depends on your credit score, existing obligations, and down payment.
2. What is a good down payment percentage?
20-30% is ideal. While banks offer up to 90% LTV (10% down payment), a higher down payment reduces your EMI burden, total interest paid, and improves loan approval chances. It also helps you get better interest rates.
3. Should I prepay my home loan or invest the money?
If your loan interest rate is 8.5% and you can earn more than 11-12% post-tax returns from investments, invest instead. Otherwise, prepay. Also consider tax benefits - interest up to ₹2L is tax-deductible, which effectively reduces your loan cost.
4. Fixed or floating interest rate - which is better?
For long-term loans (15+ years), floating rates are usually better as they average out lower despite fluctuations. Fixed rates provide certainty but start 1-1.5% higher. If rates are at historical lows, consider fixed; if high, choose floating.
5. Can I get tax benefits on a second home loan?
Yes! For a second home (self-occupied), you can claim ₹2 lakh interest deduction under Section 24. If it's let out, the entire interest amount is deductible (no ₹2L cap). Principal repayment gets ₹1.5L deduction under Section 80C.
6. What is the maximum loan tenure available?
Most banks offer up to 30 years tenure. However, the loan must be repaid before you turn 65-70 years. Longer tenure means lower EMI but much higher total interest. A 30-year loan can result in paying 2-3x the principal amount as interest.
7. What happens if I miss an EMI payment?
Missing EMIs severely impacts your credit score (drops 50-100 points). Banks charge penalty interest (2-3% per month) plus late payment fees. After 90 days of default, your loan becomes NPA (Non-Performing Asset), and the bank can initiate legal action.
8. Is home loan insurance necessary?
Not mandatory but highly recommended. Home loan protection insurance ensures your family isn't burdened with the loan if something happens to you. Premium is tax-deductible under Section 80C. Costs around 0.5-1% of loan amount annually.
9. Can I transfer my home loan to another bank?
Yes, through balance transfer or loan refinancing. If you find a better rate (0.5%+ lower), it's worth considering. However, factor in processing fees (0.5-1%), legal charges, and prepayment penalties (for fixed rate loans) before transferring.
10. How is home loan eligibility calculated?
Banks use the formula: Eligible Loan = (Net Monthly Income × 60%) × 12 months × Tenure in years / 100. For example, with ₹1 lakh income, 20-year tenure: (₹60,000 × 12 × 20) / 100 = ₹1.44 crore. This is further adjusted based on credit score and existing obligations.