Home loan EMI for ₹20 lakh to ₹1 crore
The monthly EMI at 8% a year, a little above the best advertised rates, since most borrowers pay a spread over the headline rate. Move the rate in the calculator above to see your own figure.
| Loan | 10 years | 15 years | 20 years | 25 years | 30 years |
|---|---|---|---|---|---|
| ₹20 Lakh | ₹24,266 | ₹19,113 | ₹16,729 | ₹15,436 | ₹14,675 |
| ₹25 Lakh | ₹30,332 | ₹23,891 | ₹20,911 | ₹19,295 | ₹18,344 |
| ₹30 Lakh | ₹36,398 | ₹28,670 | ₹25,093 | ₹23,154 | ₹22,013 |
| ₹40 Lakh | ₹48,531 | ₹38,226 | ₹33,458 | ₹30,873 | ₹29,351 |
| ₹50 Lakh | ₹60,664 | ₹47,783 | ₹41,822 | ₹38,591 | ₹36,688 |
| ₹75 Lakh | ₹90,996 | ₹71,674 | ₹62,733 | ₹57,886 | ₹55,032 |
| ₹1 Cr | ₹1,21,328 | ₹95,565 | ₹83,644 | ₹77,182 | ₹73,376 |
For a ₹50 lakh loan over 20 years, about ₹41,822 a month adds up to ₹1,00,37,281, of which ₹50,37,281 is interest: the loan costs nearly twice what you borrowed.
Home loan interest rates in October 2026
SBI advertises home loans from 7.25% a year (effective 1 April 2026). Most home loans are linked to the RBI repo rate, now 5.5%: the bank adds a spread that depends mainly on your credit score, so a borrower with a score above 800 gets close to the headline rate, and one with a weaker score pays more. Check the current rate card on SBI's interest rate page or your own bank's site before you apply.
When the repo rate moves, your rate follows at the next reset, usually within a quarter. The repo rate page tracks every RBI decision and what it does to an EMI.
Tax benefits on a home loan
In the old regime, a home loan on a house you live in gives two deductions every year:
- Interest: up to ₹2 lakh a year (Section 24(b) of the 1961 Act).
- Principal: up to ₹1.5 lakh a year under Section 80C, shared with PPF, EPF, ELSS, life insurance and children's tuition fees. Stamp duty and registration count too, in the year you pay them.
For a ₹50 lakh loan at 8% over 20 years, the first year's interest is about ₹3,96,181and the principal about ₹1,05,683. At the 30% slab, the deductions save about ₹95,373 in the first year and about ₹19,65,477 over the loan, if you have no other 80C investments.
The new regime allows neither deduction on a self-occupied home. If the tax saving is large, the old regime may work out cheaper for you: compare the two with the income tax calculator. Joint owners who are also co-borrowers can each claim their share. The Income-tax Act, 2025 has renumbered these sections from tax year 2026-27, but the limits are the same.
How much home loan you can get
Two limits decide the loan amount:
- Your income. Banks usually let all your EMIs together take up 40–60% of your take-home pay. The loan eligibility calculator works this out.
- The property value. RBI caps the loan at 90% of the value for loans up to ₹30 lakh, 80% for ₹30–75 lakh and 75% above ₹75 lakh. The rest is your down payment, plus stamp duty and registration.
A credit score of 750 or more, a stable job and a co-borrower with income (often a spouse) all raise the amount and lower the rate.
Charges and prepayment
Besides interest, expect a processing fee (a small percentage of the loan, often with a cap, plus 18% GST), legal and valuation charges, and sometimes insurance that the lender suggests. Since October 2024, lenders must give you a Key Facts Statement with the annual percentage rate (APR) that includes all these charges, before you sign.
You can prepay a floating-rate home loan at any time without a penalty. RBI's Pre-payment Charges Directions, 2025 extend this to every floating-rate loan to individuals for non-business purposes sanctioned or renewed from 1 January 2026, whichever bank or housing finance company lends it.
How tenure changes the cost of a ₹50 lakh loan
| Tenure | EMI | Total interest |
|---|---|---|
| 15 years | ₹47,783 | ₹36,00,869 |
| 20 years | ₹41,822 | ₹50,37,281 |
| 25 years | ₹38,591 | ₹65,77,243 |
| 30 years | ₹36,688 | ₹82,07,762 |
At 8% a year. A shorter loan costs more each month and far less in all.
Ways to pay less on a home loan
- Prepay in the early years, when most of each EMI is interest. The home loan prepayment calculator shows the saving.
- Raise the EMI by 5–10% each year as your salary rises; the loan ends years early.
- Ask for a lower spread if your credit score has improved, or move the loan to a cheaper lender.
- Keep the tenure the same after a repo cut and ask the bank to lower the EMI only if you need the cash; otherwise let the shorter tenure save interest.
The general EMI calculator works for any loan, and the gold rate and FD rates pages help if you are planning the down payment.
Frequently asked questions
What is the EMI on a ₹30 lakh home loan?
At 7.25% (SBI's starting rate in October 2026) the EMI on ₹30 lakh for 20 years is about ₹23,711. At 8% it is about ₹25,093. Each 0.5% on the rate moves this EMI by roughly ₹900–1,000.
How much tax can I save on a home loan?
In the old regime, up to ₹2 lakh a year of interest on a self-occupied home is deductible, and the principal you repay counts towards the ₹1.5 lakh 80C limit. At the 30% slab with 4% cess, that is up to about ₹1.09 lakh a year. The new regime gives no deduction for a self-occupied home.
Can I claim home loan interest in the new tax regime?
Not for a house you live in. For a let-out house, interest is deductible from the rental income in the new regime too, but a resulting loss cannot be set off against your salary or carried forward.
Will my home loan EMI change when the RBI changes the repo rate?
Most new home loans are linked to the repo rate (now 5.5%). When it changes, your bank resets the rate at the next reset date, usually within three months. Banks usually keep the EMI the same and change the tenure, unless you ask them to change the EMI instead.
Is there a penalty for prepaying or closing a home loan early?
Not on a floating-rate home loan taken by an individual. RBI rules bar prepayment and foreclosure charges on these, and its 2025 Directions extend this to all floating-rate loans to individuals for non-business purposes sanctioned or renewed from 1 January 2026. Fixed-rate loans may carry a charge, which must be shown in the Key Facts Statement.
How much down payment do I need for a home loan?
RBI caps the loan at 90% of the property value for loans up to ₹30 lakh, 80% for ₹30–75 lakh and 75% above ₹75 lakh. So you pay at least 10–25% yourself, plus stamp duty and registration, which banks usually do not finance.
Should I take a 20-year or a 30-year home loan?
A longer loan lowers the EMI but costs far more. On ₹50 lakh at 8%, 30 years instead of 20 lowers the EMI by about ₹5,134 but adds about ₹31,70,482 in interest. A common middle path is a longer tenure with regular prepayments.
Sources
- State Bank of India – loan interest rates
- RBI – Pre-payment Charges on Loans Directions, 2025
- Income Tax Department – Acts, Rules and circulars
Last updated 6 October 2026. Results are estimates for planning only and are not investment, tax or legal advice. See our disclaimer.