About home loans
Home loans are the longest and cheapest loans most people take. Because the tenure is long (up to 30 years), even a small difference in rate or tenure changes the total interest by lakhs. Most home loans in India are floating rate and linked to an external benchmark such as the RBI repo rate, so your rate can move during the loan.
Home loan rates in India typically range from about 7.5% to 10.5% a year, depending on the lender, your credit score and income. Tenures go up to about 30 years. These figures are indicative; always check the latest rate with your lender.
Sample home loan EMIs
| Loan amount | Rate | Tenure | Monthly EMI | Total interest |
|---|---|---|---|---|
| ₹20,00,000 | 8.5% | 20 years | ₹17,356 | ₹21,65,552 |
| ₹30,00,000 | 8.5% | 20 years | ₹26,035 | ₹32,48,327 |
| ₹50,00,000 | 8.5% | 20 years | ₹43,391 | ₹54,13,879 |
| ₹50,00,000 | 8.5% | 30 years | ₹38,446 | ₹88,40,443 |
| ₹75,00,000 | 8.5% | 25 years | ₹60,392 | ₹1,06,17,609 |
| ₹1,00,00,000 | 8.5% | 30 years | ₹76,891 | ₹1,76,80,885 |
EMI for popular home loan amounts
₹5 lakh · ₹10 lakh · ₹15 lakh · ₹20 lakh · ₹25 lakh · ₹30 lakh · ₹35 lakh · ₹40 lakh · ₹45 lakh · ₹50 lakh · ₹60 lakh · ₹70 lakh · ₹75 lakh · ₹80 lakh · ₹90 lakh · ₹1 crore · ₹1.5 crore · ₹2 crore
How the EMI is calculated
EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)
P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments. Learn more on our main EMI calculator page.
Tax benefits
Under the old tax regime, you can claim up to ₹1.5 lakh a year on principal repayment under Section 80C and up to ₹2 lakh a year on interest for a self-occupied house under Section 24(b). These deductions are not available in the new regime for a self-occupied house, so compare both regimes with our income tax calculator.
Tips to pay less interest
- Shorter tenure saves the most. A ₹50 lakh loan at 8.5% costs about ₹54 lakh in interest over 20 years, but about ₹88 lakh over 30 years.
- Prepay early. Extra payments in the first few years cut interest the most, and banks do not charge prepayment penalties on floating-rate home loans taken by individuals. See your savings with the prepayment calculator.
- Keep EMIs within 40–50% of take-home pay. Most lenders use a similar limit when deciding how much to lend.
- Review your rate every year. If your bank’s rate is well above new-customer rates, ask for a conversion or consider a balance transfer.
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