Question 1

What is the current home loan interest rate in India?

Accepted Answer

Home loan interest rates in India range from 8.25% to 9.5% in 2026, depending on the bank and your credit score. SBI, HDFC, and ICICI offer some of the most competitive rates. Rates are linked to the repo rate set by RBI.

Question 2

What is the maximum home loan tenure?

Accepted Answer

Most banks offer home loans with a maximum tenure of 30 years. However, the tenure cannot extend beyond your retirement age (typically 60–65 years). A longer tenure reduces EMI but increases total interest significantly.

Question 3

How much home loan can I get on my salary?

Accepted Answer

Banks typically approve home loans where EMI does not exceed 40-50% of your net monthly income. For a salary of ₹1 lakh/month, you can expect a home loan of approximately ₹50-70 lakh depending on the interest rate and tenure.

Question 4

Should I prepay my home loan or invest?

Accepted Answer

If your home loan rate is above 8.5% and you are in the highest tax bracket, prepaying the loan guarantees 8.5% risk-free return. However, if you can invest in equity MFs at 12%+ expected returns and your loan rate is low, investing might be better after accounting for Section 24 tax benefit.

Question 5

What tax benefits are available on home loan?

Accepted Answer

Under the Old Tax Regime: Section 24(b) allows deduction of up to ₹2 lakh on home loan interest per year. Section 80C allows deduction of up to ₹1.5 lakh on principal repayment. These benefits are not available under the New Tax Regime.

Home Loan EMI Calculator

Frequently Asked Questions

Home Loan EMI Calculator

Frequently Asked Questions