Home Loan EMI Calculator

As of 2024-25, a good home loan interest rate in India ranges from 8.25% to 9.5% per annum. Public sector banks like SBI and Bank of Baroda typically offer rates starting at 8.25-8.50%, while private banks start around 8.50-9.00%. Your actual rate depends on your credit score (750+ gets the best rates), loan amount, employment type, and the bank's current offers. Always compare rates from at least 3-4 lenders before finalising.

On a monthly salary of Rs 50,000, you can typically get a home loan of Rs 25-30 lakh, depending on your existing EMIs and the lender. Banks generally cap your total EMI obligations (including the new loan) at 50-60% of your net monthly income. So if you have no other loans, your eligible EMI would be around Rs 25,000-30,000/month, which translates to a loan of approximately Rs 25-30 lakh for a 20-year tenure at 8.5% interest.

For a Rs 50 lakh home loan at 8.5% interest rate for 20 years, the monthly EMI would be approximately Rs 43,391. At 9% interest for the same tenure, the EMI rises to Rs 44,986. The total interest paid over 20 years at 8.5% would be about Rs 54.1 lakh, making the total repayment around Rs 1.04 crore.

If your home loan rate is above 8.5% and you are in the old tax regime (where you already claim the Rs 2 lakh interest deduction under Section 24), prepaying is generally a good idea as guaranteed savings at 8.5% are hard to beat risk-free. However, if your loan rate is lower or you can consistently earn 12%+ returns through equity SIPs over 10+ years, investing may create more wealth. A balanced approach — partial prepayment plus SIP — often works best.