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 & Prepayment

Home Loan Amount

₹

Interest Rate (per annum)

Rates: 7.1%-12.6% (Jan 2026)

Loan Tenure

Years

Monthly EMI ₹ 25,893

Principal Amount ₹ 30,00,000

Total Interest ₹ 32,14,320

Total Amount Payable

₹ 62,14,320

Your Tax Bracket

First-time Home Buyer?

Loan sanctioned after April 2019, property value ≤ ₹45L

Annual Tax Savings

Principal Repayment (80C) ₹ 45,000

Interest Deduction (24) ₹ 60,000

Extra Interest (80EEA) ₹ 0

                        Total Annual Tax Savings
                        ₹ 1,05,000
                    

Effective EMI (After Tax Savings) ₹ 17,143

Tax Savings Over Loan Tenure ₹ 21,00,000

Note: Principal deduction under 80C is subject to overall limit of ₹1.5L (includes EPF, PPF, etc). Interest deduction under Section 24 is up to ₹2L per year for self-occupied property.

Prepay After

Months

Prepayment Option:

Reduce Tenure

Keep same EMI, finish loan faster

Reduce EMI

Keep same tenure, lower monthly payment

Prepayment Amount

₹

RBI 2026: No prepayment charges on floating-rate home loans

Prepayment Analysis

Original Interest ₹ 32,14,320

New Interest ₹ 28,50,000

                        Interest Saved
                        ₹ 3,64,320
                    

New EMI ₹ 25,893

New Tenure 220 months

Tenure Reduced By 20 months

New Total Payable

₹ 58,50,000

Monthly breakdown showing principal and interest components of each EMI payment.

Month	EMI	Principal	Interest	Balance

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

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.

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Home Loan EMI Calculator 2026