Home Loan Basics
A home loan (mortgage) lets you purchase a property by paying monthly EMIs. Banks finance 75–90% of property value. Tenure ranges from 5 to 30 years.
Eligibility Criteria
- Age: 21–60 years (salaried), 25–65 (self-employed)
- Income: EMI should not exceed 40–50% of net monthly income
- CIBIL Score: 750+ for best rates
- Employment: Minimum 2–3 years work experience
Home Loan Interest Rates 2026
- SBI: 8.50–9.65% p.a.
- HDFC: 8.75–9.40%
- ICICI: 8.75–9.50%
- Bajaj: 8.25–9.80%
Tax Benefits on Home Loan
- Section 24(b): Interest deduction up to ₹2 lakh/year (self-occupied)
- Section 80C: Principal repayment up to ₹1.5 lakh/year
- Section 80EEA: Additional ₹1.5L interest for affordable housing (if applicable)
Prepayment Strategies
Even small prepayments drastically reduce total interest. Prepaying ₹1 lakh/year on a ₹50L, 20-year loan at 8.5% saves ₹18+ lakh in interest and closes the loan 6–7 years early.