A home loan makes homeownership accessible, but choosing the right rate and tenure saves lakhs.
Current Rates (2025)
SBI: 8.25-8.35%. HDFC: 8.35%. ICICI: 8.40%. Bank of Baroda: 8.25%. Rates vary by CIBIL score, loan amount, and employment.
EMI Calculation
For ₹50L at 8.5% for 20 years: EMI = ₹43,391. Total interest: ₹54.14L — more than principal! Use our [Mortgage Calculator](/calculators/mortgage-calculator) and [SBI vs HDFC comparison](/compare/sbi-vs-hdfc-home-loan).
Tax Benefits
24(b): Interest up to ₹2L. 80C: Principal up to ₹1.5L. Total annual benefit: ₹3.5-5L, saving ₹1-1.5L taxes at 30% bracket (old regime only).
Prepayment Strategy
Prepaying ₹1L/year from year 2 on a ₹50L loan saves ₹12.5L interest and 5 years tenure. Prepay if loan rate > after-tax investment returns. Home loan at 8.5% — equity SIP (12-15%) may be better mathematically.
Balance Transfer
0.5% rate reduction on ₹40L for 15 years saves ~₹4.5L. Pro tip: Ask your current bank to match first — they often will.