Understanding Home Loans
A home loan is a secured loan provided by banks and housing finance companies to help individuals purchase, construct, or renovate residential property. These loans typically come with longer tenures of up to 30 years and lower interest rates compared to other loan types.
Interest Rates Comparison
In 2026, SBI offers rates starting from 8.50%, HDFC Ltd from 8.70%, ICICI Bank from 8.75%, Bank of Baroda from 8.40%, and PNB Housing from 8.65%. These rates are floating and linked to the RBI repo rate.
Eligibility and Loan Amount
Eligibility depends on monthly income, age, existing liabilities, property value, and credit score. Most banks finance up to 80% of the property value for loans up to Rs. 30 lakhs.
Tax Benefits
Under Section 80C, claim deductions up to Rs. 1.5 lakh on principal repayment. Section 24(b) allows deductions up to Rs. 2 lakh on interest for self-occupied property.
Choosing the Right Home Loan
Compare effective interest rates including processing fees, check prepayment penalties, and ensure EMI does not exceed 40% of your monthly income.