Calculate monthly EMI, total interest, and Section 24 + 80C tax benefits for any Indian home loan.
💰 Year 1 Tax Benefit Estimate (Old Regime, 30% bracket)
| Year | Principal Paid | Interest Paid | Outstanding Balance |
|---|---|---|---|
| Year 1 | ₹99,511 | ₹4.21 L | ₹49.00 L |
| Year 5 | ₹5.94 L | ₹20.10 L | ₹44.06 L |
| Year 10 | ₹15.00 L | ₹37.07 L | ₹35.00 L |
| Year 15 | ₹28.85 L | ₹49.25 L | ₹21.15 L |
| Year 20 | ₹50.00 L | ₹54.14 L | ₹0 |
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Download Richify — It's FreeEMI = P × r × (1+r)^n / ((1+r)^n - 1), where P is principal, r is monthly interest rate (annual rate ÷ 12 ÷ 100), and n is tenure in months. For a ₹50 lakh loan at 8.5% for 20 years (240 months), EMI is approximately ₹43,391/month. Total amount paid over 20 years = ₹1.04 crore — meaning you pay ₹54 lakh in interest on top of the ₹50 lakh principal.
Indian home loan rates in 2026 range from 8.25% to 9.50% depending on the bank, your credit score (CIBIL ≥ 750 gets best rates), loan amount, and whether the loan is fixed or floating. Public sector banks (SBI, BoB) typically offer the lowest rates; private banks (HDFC, ICICI, Axis) charge slightly higher but offer faster processing. Most loans are linked to RBI's Repo Rate via the External Benchmark Lending Rate (EBLR).
Yes, in two parts. Under Section 24(b), interest paid on home loan is deductible up to ₹2 lakh per year (only under old tax regime). Under Section 80C, principal repayment is deductible up to ₹1.5 lakh per year (within the overall 80C limit, alongside EPF/PPF/ELSS). For a ₹50 lakh loan in year 1, interest is ~₹4.2 lakh — you can claim ₹2 lakh of it. Principal repaid year 1 is ~₹1 lakh — fully claimable under 80C if you have headroom.
Prepayment makes sense when home loan rate is higher than your alternative investment's after-tax return. Home loan rate ~8.5% (effective ~6% after Section 24 tax benefit). If you can earn >8% post-tax in equity Reksa Dana / Nifty 50 index funds long-term, investing wins mathematically. However, prepayment is risk-free and forced savings. A balanced approach: prepay enough to halve the tenure, invest the rest. Use our Home Loan Prepayment Calculator for the exact crossover.
Fixed rate: locked at a higher rate (typically 0.5-1% above floating) for a defined period (usually 1-3 years), then converts to floating. Floating rate: tracks RBI's repo rate via EBLR, changes whenever repo rate changes. Most Indian borrowers choose floating because rates have been declining and floating tends to win over 20+ year tenures. Choose fixed only if you expect a rising-rate environment for the next 5+ years.
Most banks cap home loan tenure at 30 years or until borrower reaches 70-75 years of age (whichever is earlier). For a 30-year-old, max tenure is typically 30 years. For a 50-year-old, max is 20-25 years. Longer tenure = lower EMI but significantly more total interest. A 30-year ₹50L loan at 8.5% pays ₹88L interest vs ₹54L for a 20-year loan — the extra 10 years cost ₹34 lakh.