Home Loan EMI Calculator
Calculate your monthly EMI, total interest, and complete repayment schedule — in ₹ Lakhs & Crores
| Year | Principal paid (₹) | Interest paid (₹) | Outstanding balance (₹) |
|---|
Current Home Loan Interest Rates — India 2025
| Bank / Lender | Starting rate |
|---|---|
| State Bank of India (SBI) | 8.50% p.a. |
| Bank of Baroda | 8.40% p.a. |
| Punjab National Bank (PNB) | 8.45% p.a. |
| HDFC Bank | 8.70% p.a. |
| ICICI Bank | 8.75% p.a. |
| Axis Bank | 8.75% p.a. |
| Kotak Mahindra Bank | 8.75% p.a. |
| LIC Housing Finance (LIC HFL) | 8.50% p.a. |
What is home loan EMI?
EMI (Equated Monthly Instalment) is the fixed amount you pay every month to repay your home loan. It includes two components — the principal repayment and the interest on the outstanding loan balance. The formula is: EMI = P × r × (1+r)^n / [(1+r)^n − 1], where P is the principal, r is the monthly interest rate, and n is the total number of months.
How does tenure affect EMI?
A longer tenure reduces your monthly EMI but significantly increases the total interest you pay. For example, a ₹50 Lakh loan at 8.5% for 20 years has an EMI of about ₹43,391 with ₹54.1 Lakh total interest. The same loan for 30 years has a lower EMI of ₹38,446 but total interest jumps to ₹88.4 Lakh — you pay ₹34 Lakh more in interest!
What is LTV (Loan-to-Value) ratio?
LTV is the percentage of the property value the bank will lend you. As per RBI guidelines: for loans up to ₹30 Lakh, LTV can be up to 90%; for ₹30–75 Lakh, up to 80%; for above ₹75 Lakh, up to 75%. You must pay the remaining amount (down payment) from your own funds.
Is home loan interest tax deductible?
Yes. Under the old tax regime, you can claim deductions on home loan interest up to ₹2 Lakh per year under Section 24(b), and principal repayment up to ₹1.5 Lakh under Section 80C. Under the new tax regime, these deductions are not available except for let-out properties.
Does prepaying the loan help?
Absolutely — prepayment is one of the smartest financial decisions you can make. Any lump sum prepayment goes directly to reducing the principal, which reduces future interest on a smaller outstanding balance. Even one extra EMI per year can cut your loan tenure by 2–3 years and save several lakhs in interest.
Fixed rate vs floating rate home loan
Fixed rate loans have the same interest rate throughout the tenure — predictable but usually 0.5–1% higher. Floating rate loans are linked to the RBI repo rate (via RLLR/MCLR) and change when the RBI revises rates. Most borrowers in India prefer floating rates for long-tenure loans as they benefit when rates fall.