Home Loan Tax Saves ₹1.5L: Are You Claiming It?
A home loan is one of the biggest financial decisions you will make. Understanding loan types, eligibility rules, interest rates, and tax benefits can save you lakhs over the loan tenure.
₹1.5L tax saved = 3,000 cups of chai — most borrowers miss this every year
Your home loan interest saves you this much in tax every year
Key Takeaways
Compare home loan rates across at least 3 lenders — SBI, HDFC Bank, and your own bank — before applying, since even 0.25% difference saves ₹3–5 lakh over 20 years.
Check your CIBIL score before applying: a score above 750 gets you the best rates; below 700 means higher interest or outright rejection.
File your ITR correctly and claim both Section 24(b) interest deduction and Section 80C principal deduction to reduce your annual tax outgo by up to ₹3.5 lakh.
A home loan is one of the biggest financial decisions you will make. Understanding loan types, eligibility rules, interest rates, and tax benefits can save you lakhs over the loan tenure.
Here's what happened: RBI repo rate cuts in 2025 have pushed home loan interest rates lower, with several banks now offering rates starting around 8.25–8.5% per annum.. Under Section 24(b) of Income Tax Act, you can claim up to ₹2 lakh deduction annually on home loan interest for a self-occupied property.. Section 80C allows an additional ₹1.5 lakh deduction on principal repayment, making a home loan one of India's best tax-saving instruments combined..
What you should do: Compare home loan rates across at least 3 lenders — SBI, HDFC Bank, and your own bank — before applying, since even 0.25% difference saves ₹3–5 lakh over 20 years.. Check your CIBIL score before applying: a score above 750 gets you the best rates; below 700 means higher interest or outright rejection.. File your ITR correctly and claim both Section 24(b) interest deduction and Section 80C principal deduction to reduce your annual tax outgo by up to ₹3.5 lakh..
If you are a first-time buyer purchasing a property under ₹45 lakh, Section 80EEA offers an extra ₹1.5 lakh interest deduction — most borrowers never claim this.
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- [1]“Home loans: Types, eligibility, tax benefits and application process explained” mint - money · 5 Jun 2026
This article is reported by GoCredit's Editorial Team based on the source above. GoCredit synthesises, contextualises, and adds India-borrower-relevant analysis. We are not the original publisher.