Home Loan

Lenders typically fund up to 90% of property value on smaller loans, 80% on mid-size and 75% on large ones, subject to your repayment capacity. In practice, eligibility is set by income: most lenders allow total EMIs of 40–55% of net monthly income, adjusted for your existing loans, age and credit score. Our EMI calculator will show you what a given amount actually costs each month.

Floating, for most borrowers. Fixed-rate home loans in India are priced well above floating ones and are usually fixed only for an initial period anyway, so you pay a premium for protection that expires. Floating is the sensible default unless you are close to the end of the tenure and value certainty over cost.

Since 2019, floating home loans from banks are benchmarked externally, almost always to the RBI repo rate, plus a spread the bank sets for your profile. When the RBI moves the repo rate, your rate moves with it at the next reset — usually quarterly. It is more transparent than the old internal benchmarks, where cuts had a way of never reaching existing borrowers.

Under the old regime, Section 24(b) allows a deduction of up to ₹2 lakh a year on interest for a self-occupied property, and the principal repaid qualifies within the ₹1.5 lakh Section 80C limit. Under the new regime, the self-occupied interest deduction is not available — which is one reason the regime choice and the loan decision should be made together, not separately.

Compare the post-tax cost of the loan against the realistic post-tax return on the investment, and weigh how much the debt itself bothers you. At around 8.5% pre-tax, prepayment is a guaranteed, risk-free return — hard to beat with certainty, though a long-horizon equity portfolio has historically done better. We usually suggest doing both: keep the SIPs running and prepay from bonuses and windfalls.

You move the outstanding loan to a lender offering a lower rate. It is worth it when the rate gap is meaningful — roughly 0.5% or more — and you still have a long tenure left, because the saving comes from the interest yet to be paid. With over ten years remaining, a 0.75% gap on ₹50 lakh saves several lakh. With three years left, it rarely covers the paperwork.

Processing fee (0.25–1%, often negotiable), legal and technical valuation charges, documentation and stamping, CERSAI registration, and any insurance the lender bundles in. Separately, the property itself carries stamp duty and registration, which the loan does not cover. We put every one of these into the comparison.

Yes — the loan is disbursed in stages as construction progresses, and until full disbursal you pay only pre-EMI, which is interest on the amount drawn so far. It keeps early outflow low but repays no principal, so the tenure effectively starts later. Budget for paying rent and pre-EMI together, which is where under-construction purchases usually hurt.

Not always, but adding an earning co-applicant raises your eligibility and can lower the rate — most lenders offer a small concession where a woman is the owner or co-owner. Where both co-owners repay from their own income, each can claim the Section 24(b) and 80C deductions separately, which is worth structuring for at the outset rather than later.

A great deal. Most lenders now price the spread by score band, and the difference between a 780-plus score and a sub-700 one can be 0.5% or more for the life of the loan. It is worth pulling your report before you apply, clearing any small overdue balances and correcting errors — that cleanup is a normal part of what we do before a file goes in.

Yes. NRIs and OCI cardholders can borrow for residential property in India, generally up to 80% of value, with repayment through NRE or NRO accounts in Indian rupees. Tenures are usually shorter than for residents and documentation is heavier — income proof, overseas credit history and often a power of attorney for someone in India.

Not on a floating-rate home loan taken by an individual — the RBI prohibits foreclosure charges and prepayment penalties on those. Fixed-rate loans can carry a charge, typically 2–3% of the outstanding, and loans taken by a company or firm are treated differently. Check which category yours falls in before you make a large prepayment.