Home Loan EMI Calculator 2025 - Mortgage Interest & Tax Benefits

Buying a home is often the single largest financial transaction in an individual's life. While the joy of owning a home is unparalleled, the financial burden of a 20-year loan can be daunting. Our Home Loan EMI Calculator helps you plan your budget by giving you a clear picture of your monthly outflows and total interest cost.

🏠 Smart Hack: Prepay to Save Lakhs

Home loans usually last 20 years, costing you huge interest (often more than the loan amount itself!).

The Trick: Pay just 1 extra EMI every year. This simple habit can reduce your loan tenure by nearly 4-5 years and save you massive amounts in interest.

Home Loan Tax Benefits (Old Regime)

If you stick to the Old Tax Regime, a home loan is one of the most powerful tax-saving tools available. Here are the sections you can claim:

Section 24(b): Up to ₹2 Lakhs on Interest payment.
Section 80C: Up to ₹1.5 Lakhs on Principal Repayment.
Section 80EEA: Additional deduction for first-time buyers (subject to conditions).

Note: Under the New Tax Regime (default), these deductions are NOT available.

Frequently Asked Questions

What is a good CIBIL score for a Home Loan?

A score of 750+ is considered excellent. It gives you negotiating power to ask the bank for their lowest possible interest rate.

Should I reduce EMI or Tenure when prepaying?

Always reduce the <strong>Tenure</strong>. Reducing the EMI gives you short-term cash flow relief but saves very little interest.

Is property insurance mandatory?

No, RBI does not mandate it. However, banks strongly push for it. You can buy a cheaper policy from the open market.

What is the difference between Sanction and Disbursement?

Sanction is the approval of the loan limit. Disbursement is the actual release of money to the builder/seller.

Can I transfer my loan to another bank?

Yes, this is called a Balance Transfer. If another bank offers a lower rate (e.g., 0.5% less), switching can save you significant money.