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FOIR Method · Max Loan Eligibility · Property Budget · EMI · Down Payment · 80C & 24b Tax Saving
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Use actual credited amount (after TDS/PF/PT)
Interest Rate (% per annum)8.5%
6.5%8%9.5%12%
Loan Tenure20 years
5yr10yr15yr20yr25yr30yr
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Max Loan
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Property Budget
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Monthly EMI
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Total Interest
FOIR (Fixed Obligation to Income Ratio):
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0%25%50% (bank limit)75%100%
📈 How to Increase Your Loan Eligibility
Loan Tenure20 years
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Monthly EMI
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Total Interest
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Total Payment
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Interest %
Year-wise Principal vs Interest (first 10 years):
Current home loan interest rates from major Indian banks (July 2026). Even 0.25% difference saves lakhs over the loan tenure.
Home loan gives you two tax deductions for new loans: 80C (principal) and 24b (interest). A third, 80EEA (first-time buyer), is closed for any loan sanctioned after 31 March 2022 — it only applies if you already have a qualifying pre-2022 loan. Calculate your total annual tax saving.
Note: Section 80EEA's loan-sanction window closed permanently on 31 March 2022. If you're planning a new loan in 2026, you will not be eligible for it — only borrowers who already sanctioned a qualifying loan in that window can still claim it for the remaining tenure. Realistic new-loan tax deduction: 80C + 24(b) only.
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80C Deduction
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24b Deduction
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80EEA (if pre-2022 loan)
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Total Tax Saved
Prepaying your home loan reduces total interest dramatically. See how much you save by making a lump sum prepayment.
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Interest Saved
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New Tenure/EMI
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Years Saved
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Effective Return
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🏠 Home Loan Interest Rates India — July 2026
Bank / NBFC
Rate Range
Processing Fee
Max Tenure
Type
SBI Home Loan
8.50-9.85%
Nil–0.35%
30 years
Govt Bank
HDFC Bank
8.75-9.65%
0.50%
30 years
Private Bank
ICICI Bank
8.75-10.05%
0.50-1.0%
30 years
Private Bank
Kotak Mahindra Bank
8.75-9.50%
0.50%
20 years
Private Bank
Axis Bank
9.00-9.80%
1.0%
30 years
Private Bank
Bank of Baroda
8.40-10.65%
0.25-0.50%
30 years
Govt Bank
LIC Housing Finance
8.50-10.75%
Nil
30 years
NBFC
Bajaj Housing Finance
8.50-15.00%
0-4%
32 years
NBFC
Rates as of July 2026. Actual rates depend on credit score, income, LTV ratio, and bank's discretion. Compare on BankBazaar or PaisaBazaar for latest quotes.
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Home Loan Affordability Calculator India 2026 — FOIR Method, Tax Saving, Prepayment
A home loan affordability calculator tells you the maximum property value you can afford based on your income, existing debts, down payment, and the bank's Fixed Obligation to Income Ratio (FOIR) rule. In India, banks determine home loan eligibility primarily using FOIR — your total monthly debt obligations (all existing EMIs + new home loan EMI) cannot exceed 50% of your net take-home salary. For example, if you earn ₹80,000 per month net and have a ₹10,000 car loan EMI, the bank allows maximum additional EMI of ₹30,000 (50% of ₹80,000 = ₹40,000 minus ₹10,000 existing). This maximum EMI then back-calculates to determine the maximum loan amount at the prevailing interest rate for your chosen tenure.
Home loan interest rates in India range from 8.40% to 10.75% across major banks in July 2026, with SBI and Bank of Baroda typically offering the lowest rates for salaried government employees. A credit score above 750 is essential to access the best rates — borrowers with 750-900 CIBIL score typically get rates 0.25-0.50% lower than those with 650-700 scores, which saves lakhs over a 20-30 year tenure. LTV (Loan-to-Value) ratio: Banks finance 75-90% of property value — properties under ₹30 lakh get 90% financing, ₹30-75 lakh get 80%, above ₹75 lakh get 75%.
Tax benefits on new home loans under the Old Tax Regime: Section 80C (Chapter VIII/Section 123 under the Income Tax Act 2025) — up to ₹1.5 lakh/year deduction on principal repayment. Section 24(b) — up to ₹2 lakh/year deduction on interest for self-occupied property (unlimited for let-out). Realistic combined maximum for a new 2026 loan: ₹3.5 lakh/year. Section 80EEA (additional ₹1.5 lakh on interest, first-time buyer, property ≤₹45 lakh) is closed for any loan sanctioned after 31 March 2022 — it only benefits borrowers still repaying a qualifying pre-2022 loan, not new applicants. At 30% tax bracket, ₹3.5 lakh in deductions saves roughly ₹1.08 lakh annually in taxes — effectively reducing your home loan cost.
FAQ — Home Loan Affordability Calculator India 2026
What is FOIR and how does it affect home loan eligibility? ▾
FOIR (Fixed Obligation to Income Ratio) is the maximum percentage of your net monthly income that banks allow to go toward total EMI payments. Standard FOIR is 50% for most Indian banks — meaning if your net salary is ₹1 lakh/month, total EMIs (including new home loan) cannot exceed ₹50,000. If you have existing EMIs of ₹15,000, maximum new home loan EMI = ₹35,000. This EMI then determines your maximum loan eligibility. Banks use net take-home pay (after TDS, PF, PT deductions) — not gross CTC.
How much home loan can I get on ₹50,000 salary? ▾
At ₹50,000 net monthly salary with no existing loans: Maximum EMI = ₹25,000 (50% FOIR). At 8.5% for 20 years, this translates to approximately ₹26-27 lakh home loan. Adding a co-applicant (spouse earning ₹30,000) raises combined income to ₹80,000 and maximum loan to approximately ₹42-44 lakh. With a 20% down payment, you could afford a property worth ₹32-55 lakh depending on co-applicant.
How much down payment is required for home loan in India? ▾
RBI mandates minimum down payment based on property value: Properties up to ₹30 lakh — minimum 10% down payment (bank finances 90%). Properties ₹30-75 lakh — minimum 20% down (bank finances 80%). Properties above ₹75 lakh — minimum 25% down (bank finances 75%). Additionally, registration charges (5-7% of property value), stamp duty (3-7%), and home loan processing fees (0-1%) must be paid separately — these are not included in the loan amount.
Is it better to reduce EMI or reduce tenure after prepayment? ▾
Reducing tenure saves significantly more interest. Example: ₹50 lakh loan at 8.5% for 20 years. After 2 years, prepaying ₹5 lakh: (A) Reducing tenure — saves approximately ₹14-18 lakh in interest, closes loan 3-4 years early. (B) Reducing EMI — saves approximately ₹5-8 lakh in interest, loan closes at same date but lower monthly payment. Choose tenure reduction if your finances are stable. Choose EMI reduction if current EMI is straining your budget.
What tax benefits can I claim on home loan in India? ▾
For a new 2026 loan, under Old Tax Regime: Section 80C — up to ₹1.5 lakh/year on principal repayment (shared with PF, ELSS, NSC contributions). Section 24(b) — up to ₹2 lakh/year on interest paid for self-occupied property. Realistic combined maximum: ₹3.5 lakh/year. Section 80EEA (additional ₹1.5 lakh, first-time buyers, property stamp duty value ≤₹45 lakh) is CLOSED for loans sanctioned after 31 March 2022 — it does not apply to new loans; only borrowers already repaying a loan sanctioned in the April 2019–March 2022 window can still claim it. Let-out property: entire interest is deductible with no ₹2 lakh limit. Note: All these deductions are unavailable under New Tax Regime.
How does credit score affect home loan interest rate? ▾
CIBIL score directly impacts the interest rate offered: 750-900 (Excellent) — best rates, negotiating power, 0-0.25% lower than standard. 700-749 (Good) — standard rates available. 650-699 (Fair) — some banks decline, others add 0.25-0.50% loading. Below 650 — most banks decline. Even a 0.25% rate difference saves approximately ₹3-4 lakh on a ₹50 lakh, 20-year loan. Improve credit score by: paying all EMIs on time, keeping credit card utilization below 30%, and avoiding multiple loan applications simultaneously.
What documents are required for home loan in India? ▾
Identity and address proof (Aadhaar, PAN, passport). Income documents: salaried — last 3 months salary slips, 6 months bank statements, Form 16, last 2 years ITR; self-employed — ITR 3 years, audited P&L statements, business continuity proof. Property documents: sale agreement, title deed, approved plan, NOC from builder, RERA registration. Employment continuity: appointment letter, 2 years employment history. Processing takes 7-15 working days for salaried applicants, 15-30 days for self-employed.
Should I choose fixed or floating interest rate for home loan? ▾
In India, most home loans are floating rate (linked to REPO rate via EBLR — External Benchmark Lending Rate). Fixed rate home loans are rare and typically 1-2% higher than floating. Current trend (July 2026): RBI has been in rate cut cycle — floating rates are expected to stay stable or decrease. Recommendation: Choose floating rate for long tenure loans (15-30 years). Fixed rate only makes sense if you believe rates will rise significantly — unlikely in current RBI stance.