Home Loan EMI Calculator — Monthly EMI & Total Interest
Calculate home loan EMI for any bank. Enter loan amount, rate and tenure. Includes amortisation breakdown.
Home Loan Tax Benefits — Sections 24, 80C, 80EE, 80EEA
| Section | Deduction | Limit | Conditions |
|---|---|---|---|
| Section 24(b) — Interest | Interest paid on home loan | ₹2,00,000/year (self-occupied) | Construction completed within 5 yrs |
| Section 80C — Principal | Principal repayment | ₹1,50,000/year (combined with PPF/ELSS) | Property held 5+ years |
| Section 80EE | Additional Interest | ₹50,000/year | First-time buyer; loan sanctioned 2016-17; property < ₹50L |
| Section 80EEA | Additional Interest | ₹1,50,000/year | Loan sanctioned 1 Apr 2019 – 31 Mar 2022; property < ₹45L |
| Stamp Duty & Registration | One-time | Within 80C (₹1.5L) | Year of payment |
New Regime Note: Sections 80C and 80EE/EEA are NOT available in the New Tax Regime. Section 24(b) interest deduction is also NOT available. For high-EMI home owners, Old Regime is usually preferred.
Home Loan Comparison — Top Indian Lenders
| Lender | Floating Rate (Salaried) | Processing Fee | Max LTV |
|---|---|---|---|
| SBI MaxGain | 8.50-9.40% | 0.35% (₹2K-10K) | 80% (₹30L-75L) / 75% (above ₹75L) |
| HDFC Bank | 8.65-9.50% | 0.50% (max ₹10K) | 80% |
| ICICI Bank | 8.75-9.50% | 1% (max ₹10K) | 80% |
| LIC Housing | 8.75-9.50% | ₹5K + GST | 90% (up to ₹30L) |
| PNB Housing | 8.75-10.00% | 0.50% (max ₹10K) | 80% |
| Axis Bank | 8.75-9.65% | 0.50% (max ₹10K) | 80% |
| Bank of Baroda | 8.60-9.45% | ₹5K + GST | 80% |
Always negotiate — banks offer 0.10-0.25% discount for top CIBIL scores (800+) or for women applicants (mandatory under most schemes).
Home Loan Eligibility — How Banks Decide
Most banks use the “FOIR” (Fixed Obligations to Income Ratio) formula: Max EMI = 50-60% of Net Monthly Income (after existing EMIs)
| Monthly Net Income | Max EMI Allowed | Max Loan @ 9% for 20 yr |
|---|---|---|
| ₹50,000 | ₹25,000-30,000 | ₹28L-33L |
| ₹1,00,000 | ₹50,000-60,000 | ₹56L-67L |
| ₹1,50,000 | ₹75,000-90,000 | ₹84L-₹1.0 Cr |
| ₹2,50,000 | ₹1.25L-1.5L | ₹1.4 Cr-1.67 Cr |
Additional factors: CIBIL score, employer type (PSU/MNC top tier), age (max 60-65 at maturity), property type, location.
Home Loan vs Renting — The Indian Calculation
The traditional “rent is throwing money away” argument is more nuanced in India. Compare:
| Aspect | Owning (₹1Cr home, ₹80L loan, 20 yr) | Renting (₹35K/month, similar property) |
|---|---|---|
| EMI / Rent | ₹71,978/month | ₹35,000/month |
| Monthly Outflow | ₹72K + maintenance ₹5K = ₹77K | ₹35K + maintenance NIL = ₹35K |
| Difference (saved by renting) | — | ₹42K/month |
| If invested in equity SIP @ 12%, 20 yr | — | ₹4.20 crore |
| 20-year Home Equity | Property appreciates ~6% = ₹3.2 Cr; minus interest paid ₹68L | — |
| Net Position after 20 yr | Property ₹3.2 Cr | Investments ₹4.2 Cr + flexibility |
More FAQs
What is the difference between Pre-EMI and EMI?
Pre-EMI: Interest-only payments during construction phase (no principal). EMI starts after possession or full disbursement. Some banks offer “EMI from Day 1” option — pays principal + interest from disbursement; reduces total interest by 5-10%.
Should I prefer joint home loan?
Yes if both spouses are co-borrowers AND co-owners. Each can claim Section 24(b) ₹2L + Section 80C ₹1.5L SEPARATELY. Effectively DOUBLES tax benefits for the couple — saving ₹2-3 lakh annually at 30% slab.
Can I claim HRA AND home loan deduction?
Yes, in specific scenarios: (a) Living in rented accommodation in city A; owning property in city B (loan EMI). (b) Property in same city but rented out (let-out). Both HRA exemption + Section 24(b) full interest available.
What is “balance transfer” on home loan?
Transfer existing home loan to another bank offering lower rate. Save 0.5-1.5% on interest = lakhs over remaining tenure. Cost: 0-0.5% processing + valuation + legal. Break-even usually within 1-2 years.
Should I prepay or invest the extra cash?
If your home loan rate > expected investment return after tax: prepay. Home loan ~9% interest → ~6.3% post-Section-24-deduction effective cost (for 30% slab). Equity SIP at 12% post-tax ~10.5% beats this. For old-regime taxpayers with full Section 24b utilisation, investing may win.
What happens if I default on EMI?
1st miss: CIBIL ding (~50-100 points). 3 misses: Officially classified Non-Performing Asset (NPA). Property auctioned under SARFAESI Act. Severe credit damage for 7+ years. Always maintain 6 months EMI as emergency buffer.
Reverse Mortgage — for senior citizens?
For 60+ homeowners. Bank pays you monthly amount; ownership stays with you. After your demise, bank sells property to recover. Total amount paid out usually 60-80% of property value. Useful for seniors with low income.