LOWEST RATE
SBI Home Loan Feb 2026
8.50% p.a.
MAX TAX BENEFIT
Under Section 80C + 24(b)
₹3.5L /year
TYPICAL EMI
₹30L @ 8.5% for 20 years
₹26,010/month
500,00050,000,000
615
130
Interest52%
Principal
Interest
Monthly EMI
₹26,035
Principal Amount
₹30,00,000
Total Interest
+₹32,48,327
Tax Benefits on Home Loan

Estimated annual tax savings under current tax laws

Section 80C (Principal)
₹1,50,000
Section 24(b) (Interest)
₹1,62,416
Total Annual Tax Saving (30% bracket)
₹93,725

*Actual tax benefits depend on your income tax slab and other deductions claimed

Home Loan EMI Calculation Formula
The EMI (Equated Monthly Installment) for home loans is calculated using the reducing balance method:
EMI = P × [r × (1+r)n] / [(1+r)n - 1]
Where:
P= Principal loan amount (in ₹)
r= Monthly interest rate = Annual Rate ÷ (12 × 100)
n= Loan tenure in months (years × 12)

🧮Example Calculation for Home Loan

Loan Amount (P):
₹30,00,000
Annual Interest Rate:
8.5% p.a.
Loan Tenure:
20 years (240 months)
Step 1: Calculate Monthly Interest Rate (r)
r = 8.5 ÷ (12 × 100) = 8.5 ÷ 1200 = 0.00708333
Step 2: Calculate (1+r)n
(1 + 0.00708333)240 = 5.4397
Step 3: Apply EMI Formula
EMI = 30,00,000 × [0.00708333 × 5.4397] / [5.4397 - 1]
EMI = 30,00,000 × 0.03853 / 4.4397
EMI = 30,00,000 × 0.008678
Monthly EMI:
₹26,034
Total Amount Payable:₹62,48,160
Total Interest Paid:₹32,48,160
(Interest is 108% of principal amount)

💡Understanding the Formula

  • Reducing Balance Method: Interest is calculated on the outstanding principal amount, which decreases with each EMI payment.
  • Fixed EMI: The EMI amount remains constant throughout the loan tenure, but the interest and principal components change each month.
  • Early Payments: Initial EMIs contain more interest, later EMIs contain more principal repayment.
  • Tax Benefits: Claim deductions under Section 80C (principal up to ₹1.5L) and Section 24(b) (interest up to ₹2L) while filing ITR.
Note: All Indian banks use the reducing balance method for EMI calculation. This calculator uses the same formula to provide accurate results matching bank statements.
Home Loan Interest Rates Comparison (Updated Feb 2026)
BankInterest RateProcessing FeeMax Loan AmountMax Tenure
SBI8.50% - 9.65%0.35% of loanUp to ₹10 Cr30 years
HDFC Bank8.60% - 9.50%Up to 0.5%Up to ₹10 Cr30 years
ICICI Bank8.75% - 9.70%Up to 1%Up to ₹15 Cr30 years
Axis Bank8.75% - 9.65%Up to 1%Up to ₹5 Cr30 years
PNB8.40% - 10.40%0.35% of loanUp to ₹7.5 Cr30 years

*Rates are indicative and vary based on credit score, loan amount, and property value. Last updated: Feb 2026

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Want to master home loans?Read our Complete Home Loan Guide (2026)

Benefits of Home Loans in India

  • Lower Interest Rates: Home loans have the lowest interest rates (8.5%-9.5%) compared to other loans.
  • Tax Savings: Save up to ₹3.5 lakh annually under Sections 80C and 24(b).
  • Long Tenure: Repayment period up to 30 years makes EMI affordable.
  • Asset Creation: Building equity while paying EMI instead of rent.

Home Loan Tax Benefits (2026)

Section 80C: Claim deduction up to ₹1,50,000 on principal repayment.
Section 24(b): Claim deduction up to ₹2,00,000 on interest paid for self-occupied property (no limit for let-out property).
Section 80EEA: Additional ₹1,50,000 deduction on interest for first-time home buyers (property value up to ₹45 lakh).

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Home Loan Eligibility Criteria

  • Age: 21-65 years (salaried), 21-70 years (self-employed)
  • Income: Minimum ₹25,000/month (varies by city and bank)
  • Credit Score: Minimum 650, preferably 750+
  • Employment: Minimum 2 years work experience (salaried), 3 years business vintage (self-employed)
  • EMI to Income Ratio: Should not exceed 50% of monthly income
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Frequently Asked Questions

As of February 2026, home loan interest rates range from 8.50% to 9.65% p.a. SBI offers rates starting at 8.50%, HDFC at 8.60%, and ICICI at 8.75%. Rates depend on credit score, loan amount, and property value.

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Fincado Research Team

Fact Checked

Our analysis is built on deep-dive research into RBI Benchmarks and lender-specific disclosures. We verify every interest rate and fee structure against real-world borrower approvals to ensure the highest level of accuracy for Indian home buyers.

Verified: Feb 2026
Methodology: Data-Driven
Editorial Guidelines