Home Loan EMI Calculator

As of June 8, 2026, home loan rates from major lenders range from 7.25% to 9.5% p.a. for salaried borrowers. The RBI cut the repo rate by a cumulative 125 basis points through 2025, bringing it to 5.25%. Since all new floating-rate home loans are mandatorily linked to EBLR (repo rate + bank's spread), these cuts have been passed on to eligible borrowers. The rate you actually get depends on your CIBIL score, employment type (salaried vs self-employed), loan amount, LTV ratio, and whether you have an existing relationship with the lending bank. PSU banks (SBI, BOB, PNB) currently offer the most competitive rates for salaried borrowers with CIBIL 750+. Always compare APR — not just the headline rate — across at least three lenders.

Most Indian banks use a FOIR (Fixed Obligation to Income Ratio) of 40–50% of gross monthly income — meaning total EMIs across all loans should not exceed this threshold. A simplified rule: you can typically get a home loan of approximately 50–60 times your monthly net salary, subject to CIBIL score and existing obligations. For example, a net salary of ₹1 lakh/month could support a loan of ₹50–60 lakh. However, your actual EMI affordability should be assessed on take-home pay, not gross. The 30% rule (EMI ≤ 30% of take-home) is a more conservative and sustainable personal finance guideline. This calculator shows "Minimum Income Needed" using the 40% rule on the results card.

Per NHB (National Housing Bank) guidelines, the maximum LTV ratios are: up to 90% for home loans up to ₹30 lakh; up to 80% for loans between ₹30 lakh and ₹75 lakh; and up to 75% for loans above ₹75 lakh. This means the minimum down payment is 10%, 20%, or 25% respectively. These caps exist to protect both borrowers and lenders from over-leveraging. A higher LTV loan carries more risk — if property values fall, you could owe more than the property is worth. This calculator's LTV bar and cap warning help you visualise exactly where you stand relative to the NHB limits.

Yes — but only in the old tax regime. From AY 2027–2028, the new tax regime is the default. Under the old regime: Section 24(b) allows deduction of up to ₹2 lakh/year on home loan interest for a self-occupied property; for let-out property, the full interest is deductible with no cap. Section 80C allows deduction of up to ₹1.5 lakh/year on principal repayment (combined with other 80C investments). Section 80EEA provides an additional ₹1.5 lakh on interest for eligible first-time affordable housing buyers. Under the new regime, none of these deductions are available. Use the amortization schedule in this calculator to extract year-wise interest and principal figures for your CA when filing under the old regime.

Floating rate loans are linked to an external benchmark (EBLR, typically the RBI repo rate). When the RBI cuts rates, your EMI or tenure reduces within 90 days — you benefit from rate cycles. When the RBI hikes, your EMI rises. Most home loans in India are on floating rates and carry no prepayment penalty per RBI norms. Fixed rate loans lock the interest rate for 2–5 years (rarely the full tenure) — providing payment certainty but no benefit from rate cuts. Fixed rates are typically 1–2% higher than floating, and early foreclosure attracts 2–5% penalty during the fixed period. For most borrowers taking a 20-year loan, a floating-rate loan has been historically cheaper over the full tenure despite volatility. In a falling rate environment (like the current 2025 cycle), floating rate is strongly preferred.

Most banks prefer a CIBIL score of 750 or above for a home loan. Scores between 700–750 may still get approved but at higher rates (0.25–0.5% more). Below 650, most lenders will decline or require a co-borrower with a strong profile. The score reflects your repayment history — missed EMIs, credit card dues, and high credit card utilisation all lower it. To improve your score before applying: (a) pay all existing EMIs and credit card bills on time for 6–12 months; (b) keep credit card utilisation below 30%; (c) avoid applying for multiple loans or cards simultaneously (each hard inquiry lowers your score by 5–10 points). Each 50-point improvement in CIBIL score can translate to 0.25–0.5% better rate — on a ₹60L loan for 20 years, that's ₹4–8 lakh in saved interest.

Almost always, reduce tenure. When you reduce tenure, the outstanding balance drops faster, and interest is charged on a lower base for more months — the compounding savings effect is significantly larger. Example: ₹60L loan at 8.5% for 20 years with ₹3L prepayment in Year 2. Reducing tenure saves approximately ₹5.4L more than reducing EMI. Reduce EMI when: your current EMI is genuinely straining monthly cash flow, multiple financial obligations are competing, or the higher EMI puts you at risk of missing payments (which would cost far more in penal interest and CIBIL damage). The Scenario Comparison in this calculator lets you model both options side by side with your actual numbers.

For floating-rate home loans from banks, the answer is yes — no prepayment penalty is permitted per RBI circular DBOD.No.Dir.BC.56/13.03.00/2011-12. This applies to all individual borrowers. For fixed-rate home loans, lenders can charge 2–5% of the prepaid amount during the fixed-rate period. HFCs (Housing Finance Companies) regulated by NHB follow similar norms for individual borrowers under the NHB's Fair Practices Code. Always verify the prepayment terms in your loan agreement before signing. Ask specifically: "Is there a lock-in period?" and "What is the foreclosure charge after the lock-in?" — both in writing.

MCLR (Marginal Cost of Funds-based Lending Rate) is an internal bank rate revised quarterly. Rate cuts pass through only at your loan's annual reset date — creating a 6–12 month lag. EBLR (External Benchmark Lending Rate) is linked to the RBI repo rate; banks must pass changes within 90 days. All new home loans since October 2019 are mandatorily on EBLR. Borrowers on MCLR-linked loans (pre-2019) should request a switch to EBLR — especially now, after 125 bps of RBI repo rate cuts in 2025. The switch fee is typically ₹2,000–₹5,000. The saving on a ₹60L loan at 0.75% higher rate = ~₹45,000 annually — the switch pays for itself in weeks.

Open the Yearly Table in the Amortization Schedule section. For each financial year, the "Interest Paid" column is the figure claimable under Section 24(b) — up to ₹2 lakh/year for a self-occupied property in the old tax regime. The "Principal Paid" column is the Section 80C deduction (within the ₹1.5L combined limit). For FY 2026–2027, use the row corresponding to the current financial year. Remember: Section 24(b) and 80C are available only in the old tax regime (not the new default regime from AY 2027–2028). Share the yearly table output with your Chartered Accountant when computing your ITR. The Monthly Table also lets you cross-check individual EMI interest amounts against your bank's statement.

Stamp duty is a state subject and varies significantly. Key rates in 2026: Maharashtra 5% (women 4%), Karnataka 5%, Delhi 6% (women 4%), Tamil Nadu 7%, Gujarat 4.9%, Telangana 4%, Rajasthan 5%, West Bengal 6%. Registration charges are typically 0.5%–2% of property value on top of stamp duty. For an ₹80L property in Maharashtra, stamp duty alone is ₹4 lakh + registration ₹80,000 = ₹4.8 lakh upfront in government charges. Stamp duty is not financed by the bank — it must come from your own funds at the time of registration. Factor this into your down payment calculation. Enter your exact state rates in this calculator's Fees panel for accurate total cost.

For floating-rate EBLR-linked home loans (all new loans since October 2019), banks must pass on repo rate changes within 90 days. When the RBI cuts the repo rate (as it did cumulatively by 125 bps in 2025, taking repo to 5.25%), your effective home loan rate drops by the same amount, reducing either your EMI or your tenure — depending on what you agreed with your bank at the time of loan. Most banks default to reducing tenure rather than EMI, keeping monthly outflow stable but closing the loan earlier. You can request an EMI reduction if you prefer. For MCLR-linked loans (pre-2019), rate changes pass through only at the annual reset date — creating a significant lag. This is why switching to EBLR is strongly recommended.

Standard documents for a salaried applicant: KYC — Aadhaar, PAN, passport/voter ID; Income proof — last 3 months salary slips, Form 16 for 2 years, last 6 months bank statements; Employment proof — offer letter or employment certificate; Property documents — sale agreement/allotment letter, property tax receipts, title documents, NOC from society/builder; Property valuation report (done by bank's empanelled valuer). Self-employed: ITR + CA-certified P&L + balance sheet for 2 years + business proof + GST returns. Banks typically run a credit check (CIBIL pull) and a legal + technical verification of the property. Processing time ranges from 3 to 21 working days depending on the lender and property documentation completeness.

This depends on your investment returns vs after-tax cost of the loan. Pay more down payment when: your investable surplus earns less than your home loan rate (e.g., you keep money in savings account at 3.5% while loan costs 8.5%); you have no tax benefit on the loan (new regime); or you want the psychological benefit of lower debt. Invest the difference when: you are a consistent long-term equity investor averaging 12%+ CAGR; you are in the old regime with a large interest deduction; or the money is earmarked for a child's education / retirement with a specific horizon. For most salaried individuals who are not disciplined long-term investors, a higher down payment is the more prudent choice — it reduces compulsory debt service and provides cash flow flexibility.