Home Loan Eligibility, Interest Rates and Documents
A home loan is the largest and longest financial commitment most families
take on — commonly 15 to 30 years. Because the property itself is the
security, rates are far lower than unsecured borrowing, but the assessment is
more thorough: the lender evaluates you and the property, and either
can hold up a sanction.
Two approvals are involved. A sanction confirms how much the
lender will lend you based on income and credit history, and is often issued
before you finalise a property. Disbursal follows only after
legal and technical verification of the specific property. A clean sanction can
still stall if the title or approvals are defective, so it is worth getting
sanctioned first and then shopping with a known budget.
How much you can borrow
The RBI caps loan-to-value (LTV) — the share of the property's value a
lender may finance. The balance is your down payment, and stamp duty and
registration normally sit outside the loan.
| Property value |
Maximum LTV |
Your minimum contribution |
| Up to ₹30 lakh |
90% |
10% plus stamp duty and registration |
| ₹30 lakh to ₹75 lakh |
80% |
20% plus stamp duty and registration |
| Above ₹75 lakh |
75% |
25% plus stamp duty and registration |
LTV is the ceiling, not an entitlement. The sanctioned amount is the lower of
the LTV cap and what your income supports.
The bands above are the RBI's caps and apply at every loan size — the 75%
band covers high-value lending, not just property just above ₹75 lakh.
We facilitate home loans of up to ₹10 crore over tenures
of up to 30 years; the EMI calculator covers
that full range.
Who is eligible
| Criterion |
Salaried applicant |
Self-employed applicant |
| Age |
21 to 60–65 at loan maturity |
25 to 65–70 at loan maturity |
| Income |
Stable salary; 3 years' work history preferred |
3 years' ITR showing consistent profit |
| Credit score |
750+ for the best pricing. Below 700 the rate rises and some lenders decline outright on a 20-year exposure. |
| FOIR |
All EMIs including the new one typically capped near 50–60% of net income; higher earners are allowed more room |
| Property |
Clear marketable title, approved building plan, occupancy certificate for ready property |
Adding a co-applicant — usually a spouse or parent with
income — raises eligibility because both incomes are counted. Be aware
it cuts both ways: the co-applicant's credit history is assessed too, and a
weak report on either party affects the offer. Many lenders also offer a
marginally lower rate where a woman is the owner or co-owner.
Interest rates: floating versus fixed
Home loan rates generally sit between about 6.5% and 18% per annum.
Most are floating and linked to an external benchmark, usually the RBI repo rate,
so your EMI moves with policy changes. Fixed-rate products are less common,
priced higher, and are usually fixed only for an initial period.
Two rules materially favour the borrower on floating loans:
- No prepayment penalty. The RBI bars foreclosure and prepayment charges on floating-rate home loans to individual borrowers. You may repay early, in part or in full, without a fee.
- Balance transfer is always available. If your lender's rate drifts above the market, you can move the loan elsewhere. Weigh the new lender's processing and legal fees against the saving before switching.
Rates shown are indicative market ranges, not an offer.
Tax relief
Under the old tax regime, a self-occupied home loan allows a deduction of up to
₹2,00,000 a year on interest under Section 24(b), and principal
repayment counts toward the ₹1,50,000 Section 80C limit, shared with
your other 80C investments. These deductions are largely unavailable under the new
regime, so the regime you choose changes the real cost of the loan. Confirm your
position with a tax adviser before assuming the benefit.
Documents you will need
| Category | Accepted documents |
|---|
| Identity and address | PAN (mandatory), Aadhaar, passport, voter ID or driving licence |
| Income — salaried | 3 months' salary slips, 6 months' bank statements, Form 16, appointment letter |
| Income — self-employed | 3 years' ITR with computation, audited financials, 12 months' bank statements, business proof |
| Property | Sale agreement, title deeds, approved plan, occupancy or completion certificate, latest tax receipt, NOC from society or builder |
| Other | Photographs, existing loan statements, own-contribution proof |
Costs beyond the interest rate
- Processing fee — roughly 0.25% to 1% of the loan, often capped, plus GST.
- Legal and technical valuation — charged for verifying title and assessing the property.
- Stamp duty and registration — state-specific, typically 5–8% of value, payable by you and not funded by the loan.
- MODT / mortgage charges — for creating the charge on the property.
- Property insurance — sometimes bundled; ask whether it is optional and compare it independently.
Why credit reports matter more on a home loan
On a 20-year exposure secured against a family home, lenders scrutinise the credit
report far more closely than on a small personal loan. A single account wrongly
marked settled, an old loan still showing an outstanding balance, or a
duplicate entry can move you from the best rate to a materially worse one —
and on a ₹50 lakh loan over 20 years, even half a percentage point is a large sum.
Because both applicants are assessed, it is worth checking the co-applicant's
report as carefully as your own. Your score is free from
CIBIL,
Experian,
Equifax and
CRIF High Mark.
We do not sell it. What we do is
analyse the full report as an
underwriter reads it, and
dispute what is wrong with the
bureau and the lender — ideally before you apply, because a home loan
rejection is expensive to recover from.
