Home Loan Essentials
A home loan is typically the largest financial commitment you'll make. Understanding the details can save you lakhs over the loan tenure. Here's your comprehensive guide.
Interest Rates
Currently 8.3-9.5% for most borrowers. Women get 0.05% concession. Floating rates linked to repo rate.
Tax Benefits
Sec 24: Up to ?2L on interest. Sec 80C: Up to ?1.5L on principal. Sec 80EEA: Additional ?1.5L for affordable housing.
Tenure
Up to 30 years. Shorter tenure = more EMI but much less total interest. 20 years is usually optimal.
Eligibility
EMI should not exceed 40-50% of net monthly income. Good credit score (750+) gets best rates.
Home Loan Tax Benefits
| Section | Deduction On | Maximum Limit | Condition |
|---|---|---|---|
| Section 24(b) | Interest payment | ?2,00,000/year | Self-occupied property |
| Section 80C | Principal repayment | ?1,50,000/year | Part of overall 80C limit |
| Section 80EEA | Additional interest | ?1,50,000/year | Stamp value ? ?45 lakh, first home |
| Section 24(b) | Interest (let-out) | No limit | Property rented out |
Tips to Save Money on Your Home Loan
Calculate Your EMI
Use our EMI Calculator to find your monthly payment and total interest cost.
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