Home loan borrowers can claim tax deductions under Section 80C (up to ₹1.5 lakh on principal repayment), Section 24(b) (up to ₹2 lakh on interest for self-occupied property), and Section 80EEA (additional ₹1.5 lakh for first-time buyers under specified conditions).
Most banks and housing finance companies offer home loans with a maximum tenure of 30 years. The actual tenure depends on the borrower's age at the time of application — the loan must typically be repaid before the borrower turns 60–65 years.
Floating rates are linked to the RBI repo rate and change over time, usually starting lower than fixed rates. Fixed rates remain constant throughout the tenure, offering predictable EMIs. Floating rates are generally recommended for long-tenure loans as they tend to be lower overall.
Processing fees typically range from 0.25% to 1% of the loan amount, subject to a minimum and maximum cap set by the lender. Some banks may waive or discount processing fees during promotional periods. Additional charges may include legal fees, valuation fees, and stamp duty.