How a home loan is priced and repaid, and the choices that change what it costs you.
A home loan is repaid in equal monthly instalments, each EMI covering the interest for that month and part of the amount borrowed. Early on most of each instalment is interest; later most of it is principal. That is why prepaying early saves much more than prepaying late.
Three numbers set the EMI: the amount borrowed, the yearly interest rate and the number of years. A longer tenure lowers the EMI and raises the total interest paid, sometimes sharply.
A floating rate moves with a benchmark, so your instalment or your tenure changes when rates do. A fixed rate holds for the period the lender names and is usually priced higher. Ask what happens at the end of a fixed period, and how a change in rate is passed on to you.
A lender's eligibility is a ceiling set by their rules, not a measure of what is comfortable for you. Leave room for rate rises, a period without income, and the other costs of running a home. The affordability calculator on this site shows what a given income can carry.
Repayment of principal and payment of interest on a home loan have attracted tax deductions under some tax regimes, within limits. The rules change, so check the current provisions or ask a tax adviser rather than relying on a general statement.
This guide is general information, not legal, tax or financial advice. Rules differ between states and change over time, so confirm the details that matter to you with a qualified professional or the authority concerned before you act.