What is the current home loan interest rate in India 2026?

Home loan interest rates in January 2026 range from 7.10% to 12.6% depending on the lender. SBI offers rates from 8.25%, ICICI Bank from 7.65%, and HDFC Bank from 7.90% for salaried individuals.

Are there prepayment charges on home loans in 2026?

From January 1, 2026, RBI has banned all prepayment and foreclosure charges on floating-rate home loans for individuals. You can prepay any amount from any source without penalties.

What is the maximum home loan tenure in India?

Most banks offer home loans up to 30 years tenure. However, the loan must be repaid before the borrower turns 60-70 years (varies by bank). Longer tenure reduces EMI but increases total interest.

How much home loan tax benefit can I claim?

Under Section 80C, principal repayment up to Rs. 1.5 lakh is deductible. Under Section 24, interest up to Rs. 2 lakh is deductible for self-occupied property. Additional Rs. 1.5 lakh under Section 80EEA for first-time buyers.

Should I prepay home loan or invest in mutual funds?

If your home loan rate is 8-9% and you're in 30% tax bracket, effective cost is ~6%. Equity mutual funds historically return 12-15%. For long-term investors, investing may be better. For risk-averse, prepaying gives guaranteed tax-free return equal to your loan rate.

Home Loan EMI Calculator 2026 | Amortization & Prepay

Home Loan EMI Calculator

Calculate your home loan EMI, view detailed amortization schedule, analyze prepayment savings, and estimate tax benefits under Section 80C, Section 24, and Section 80EEA.

Home Loan EMI Formula

EMI = [P × r × (1+r)^n] / [(1+r)^n - 1]

Where: P = Loan amount, r = Monthly interest rate, n = Tenure in months

Home Loan Tax Benefits 2026

Section 80C: Principal repayment up to ₹1.5L deductible
Section 24: Interest up to ₹2L deductible (self-occupied property)
Section 80EEA: Additional ₹1.5L interest deduction for first-time buyers

How to Use This Home Loan Calculator

Begin by entering the total loan amount — typically the property price minus your down payment. Input the annual interest rate offered by your lender (current SBI home loan rates start around 8.50% for 2026). Set the tenure in years; most home loans run 15 to 30 years.

The EMI is calculated instantly. To see the tax benefit, open the Tax Benefits section and enter your income tax slab rate — the calculator estimates the annual tax savings from Section 24 (interest deduction up to ₹2 lakh) and Section 80C (principal repayment up to ₹1.5 lakh).

Use the Prepayment tab to model partial repayments. Enter any year-end bonus or surplus as a lump sum and see how many years it shaves off the loan. The Amortization schedule shows every yearly payment broken into principal and interest, so you can track when the loan balance drops below a key threshold — useful when planning a balance transfer to a lower-rate lender.

Frequently Asked Questions

What documents are needed for home loan?

Identity proof, address proof, income proof (3 months salary slips/ITR), bank statements (6 months), property documents, and photographs.

Can I claim tax benefits on under-construction property?

Yes. For under-construction property, you can claim the entire pre-construction interest (in 5 equal installments) starting from the year in which construction completes, along with Section 80C benefits.

What is the best home loan tenure?

Shorter tenure saves more on interest but has higher EMI. Choose based on your monthly budget and tax-saving needs. Most borrowers opt for 15-20 years.

Should I prepay home loan or invest?

If loan rate > expected investment returns (after tax), prepay. Consider your risk appetite and liquidity needs. Diversifying between prepayment and investment is often optimal.

How much home loan can I get on my salary?

Banks typically offer loans where EMI is 40-50% of monthly income. For ₹50,000 salary, expect ₹25-30 lakh loan eligibility at 8.5% for 20 years.