How much down payment is typical in India?

Most lenders finance up to 75-90% of the property value (LTV ratio), so a down payment of 10-25% is typical. RBI guidelines cap the LTV at 90% for loans up to ₹30 lakh, 80% for ₹30-75 lakh, and 75% for loans above ₹75 lakh. A larger down payment lowers your EMI, reduces total interest, and often gets you a better interest rate from the bank. Budget an additional 7-10% of property value for stamp duty, registration, legal fees, and interior work.

Are stamp duty and registration included in the loan?

No. Stamp duty (typically 5-7% depending on the state) and registration fees (1-2%) are paid by you separately and are not part of the financed amount. Banks do not include these costs in the home loan. You need to budget for these costs in addition to your down payment. Some states offer stamp duty concessions for women buyers (e.g., Delhi charges 4% for women vs 6% for men).

Can I claim tax benefits on a home loan?

Yes — under the Old Tax Regime, principal repayment qualifies under Section 80C (up to ₹1.5 lakh per year) and interest paid qualifies under Section 24(b) (up to ₹2 lakh per year for a self-occupied property, with no limit for a let-out property). First-time buyers can claim an additional ₹1.5 lakh under Section 80EEA if the stamp duty value is under ₹45 lakh. Under the New Tax Regime, most of these deductions are not available except for let-out property interest deductions.

Should I choose fixed or floating interest rate?

Floating rates are typically lower in India and adjust with RBI repo rate changes. Fixed-rate home loans are rare and usually only fixed for the first 2-3 years before converting to floating. Most borrowers go with floating rates. If you expect interest rates to rise, consider a shorter tenure or plan for occasional prepayments to offset the rate increase.

How do home loan prepayments work?

Most banks allow part-prepayment of home loans at any time without penalty (for floating rate loans — RBI mandates no prepayment penalty on floating rate loans). When you prepay, the amount goes directly toward reducing your outstanding principal. You can then choose to either reduce your EMI (keeping tenure same) or reduce your tenure (keeping EMI same). Reducing tenure is generally better as it saves more interest over the long run. Even small prepayments of ₹50,000-₹1 lakh per year in the first 5 years can save you several lakhs in total interest.

Does a joint home loan help with eligibility?

Yes, adding a co-applicant (typically spouse) increases your combined income, which allows you to qualify for a higher loan amount. Both co-applicants can independently claim tax benefits under Section 80C and 24(b), effectively doubling the available deductions. Some banks also offer 0.05-0.10% lower interest rates for women co-applicants. The property must be jointly owned for both parties to claim tax benefits.

How much down payment is typical in India?

Most lenders finance up to 75-90% of the property value (LTV ratio), so a down payment of 10-25% is typical. RBI guidelines cap the LTV at 90% for loans up to ₹30 lakh, 80% for ₹30-75 lakh, and 75% for loans above ₹75 lakh. A larger down payment lowers your EMI, reduces total interest, and often gets you a better interest rate from the bank. Budget an additional 7-10% of property value for stamp duty, registration, legal fees, and interior work.

Are stamp duty and registration included in the loan?

No. Stamp duty (typically 5-7% depending on the state) and registration fees (1-2%) are paid by you separately and are not part of the financed amount. Banks do not include these costs in the home loan. You need to budget for these costs in addition to your down payment. Some states offer stamp duty concessions for women buyers (e.g., Delhi charges 4% for women vs 6% for men).

Can I claim tax benefits on a home loan?

Yes — under the Old Tax Regime, principal repayment qualifies under Section 80C (up to ₹1.5 lakh per year) and interest paid qualifies under Section 24(b) (up to ₹2 lakh per year for a self-occupied property, with no limit for a let-out property). First-time buyers can claim an additional ₹1.5 lakh under Section 80EEA if the stamp duty value is under ₹45 lakh. Under the New Tax Regime, most of these deductions are not available except for let-out property interest deductions.

Should I choose fixed or floating interest rate?

Floating rates are typically lower in India and adjust with RBI repo rate changes. Fixed-rate home loans are rare and usually only fixed for the first 2-3 years before converting to floating. Most borrowers go with floating rates. If you expect interest rates to rise, consider a shorter tenure or plan for occasional prepayments to offset the rate increase.

How do home loan prepayments work?

Most banks allow part-prepayment of home loans at any time without penalty (for floating rate loans — RBI mandates no prepayment penalty on floating rate loans). When you prepay, the amount goes directly toward reducing your outstanding principal. You can then choose to either reduce your EMI (keeping tenure same) or reduce your tenure (keeping EMI same). Reducing tenure is generally better as it saves more interest over the long run. Even small prepayments of ₹50,000-₹1 lakh per year in the first 5 years can save you several lakhs in total interest.

Does a joint home loan help with eligibility?

Yes, adding a co-applicant (typically spouse) increases your combined income, which allows you to qualify for a higher loan amount. Both co-applicants can independently claim tax benefits under Section 80C and 24(b), effectively doubling the available deductions. Some banks also offer 0.05-0.10% lower interest rates for women co-applicants. The property must be jointly owned for both parties to claim tax benefits.

Finance

Home Loan Calculator

Name: Home Loan Calculator
Availability: InStock
Author: CalculatorDesk

Calculate your home loan EMI in India. Plan down payments, see total interest outflow, and discover tax benefits. Simple, fast, and accurate.

By CalculatorDeskUpdated 2 Jul 2026

Property price

₹

₹ 0₹ 5,00,00,000

Down payment

₹

₹ 0₹ 50,00,000

Reduces the financed principal.

Interest rate

1%15%

Tenure

yrs

1 yrs30 yrs

Monthly EMI

₹43,391

Principal: ₹50,00,000
Total interest: ₹54,13,879
Total payment: ₹1,04,13,879

Principal vs interest

Principal48.0%
Interest52.0%

What is Home Loan?

A home loan EMI is calculated using the principal loan amount, interest rate, and tenure. In India, banks typically finance 75-90% of the property value, requiring a 10-25% down payment. Floating interest rates hover around 8.25%-9.25% p.a. as of mid-2026, making interest optimization critical.

A home loan (or housing loan) is a long-tenure secured loan taken against a residential property. Because housing loans span 15 to 30 years, interest expenses often exceed the original loan principal itself. Factoring in a down payment helps minimize total borrowing and lowers your monthly obligations.

Home loans in India are usually offered at floating interest rates linked to the bank's repo-rate-based lending rate (RLLR or EBLR). As of mid-2026, most major banks offer home loan rates between 8.25% and 9.25% p.a. depending on your credit score, loan amount, and employment profile.

Formula

The home loan EMI is computed using the reducing balance method. The formula calculates the fixed monthly amount needed to pay off the principal and interest over the selected tenure.

Standard Reducing Balance Amortization Formula:

EMI = P × r × (1 + r)^n / [(1 + r)^n − 1]

P = Loan Principal (Property price − down payment)
r = monthly interest rate (annual interest rate ÷ 12 ÷ 100)
n = total tenure in months (years × 12)

Worked Example

Inputs Scenario:

Property Price: ₹75,00,000
Down Payment: ₹15,00,000 (20%)
Loan Principal: ₹60,00,000
Interest Rate: 8.5% p.a. (floating)
Tenure: 20 Years (240 months)

Execution Steps:

Determine loan principal (P) = ₹75,00,000 property price minus ₹15,00,000 down payment = ₹60,00,000.
Convert annual interest rate to monthly rate (r) = 8.5% / 12 / 100 = 0.007083 per month.
Calculate total months (n) = 20 years * 12 months = 240 months.
Apply formula: EMI = P * r * (1+r)^n / ((1+r)^n - 1) = ₹60,00,000 * 0.007083 * (1.007083)^240 / ((1.007083)^240 - 1).
Maturity calculation: (1.007083)^240 equals approximately 5.4397.
Calculate final monthly payment: EMI = ₹52,069 per month.

Monthly EMI: ₹52,069. Total interest paid: ₹64,96,560. Total amount returned to bank: ₹1,24,96,560.

How to use this calculator

Adjust property price, down payment percentage, annual interest rate, and tenure in years. The calculator immediately computes your loan principal, monthly EMI, total interest, and total payment. Try raising down payments by 5-10% to see interest costs drop.

Enter the property price, the down payment you can put up, the bank's offered interest rate, and tenure. The calculator finances only the remaining amount (property price minus down payment). Adjust the sliders to compare different scenarios.

Prepayment strategy: When interest rates rise, instead of paying higher EMIs, consider making small part-prepayments annually. Over a 20-year loan, prepaying just one extra EMI every year can reduce your total tenure by 3-4 years and save lakhs in interest.

Frequently asked questions

Current home loan rates (2026)

Rates verified 5 July 2026

SBI Home Loan (from)	8.50% p.a.
HDFC Home Loan (from)	8.75% p.a.
ICICI Home Loan (from)	8.75% p.a.
LIC Housing Finance (from)	8.50% p.a.
RBI Repo Rate	6.50%

Indicative rates compiled from public bank websites, RBI, and the Ministry of Finance for reference only. Actual rates depend on credit profile, tenure and product variant — confirm with the lender before applying.