Loans
Home loans,made simple.
Banks lend 75% to 90% of the property value; you pay the rest as a down payment.
In one minute
- 1
Borrow most of the price
Banks lend 75% to 90% of the property value; you pay the rest as a down payment.
- 2
Repay over up to 30 years
A longer term means a smaller EMI — but more interest in total. Part-payments cut both.
- 3
Save tax every year
Interest and principal repayments can reduce your taxable income under the old tax regime.
Chapter 01
What is a home loan?
A home loan is money borrowed from a bank or housing finance company to buy, build or renovate a home. The home itself is the security for the loan. You repay it in fixed monthly instalments (EMIs) that include both interest and a part of the amount borrowed.
Because the loan is secured by property and runs for many years, home loans carry some of the lowest interest rates of any loan — typically about 7.5% to 9.5% a year today, depending on the lender and your credit score.
Chapter 02
How much can you borrow?
01
Up to ₹30 lakh
- Bank can lend up to
- 90%
- Your down payment
- At least 10%
02
₹30 lakh – ₹75 lakh
- Bank can lend up to
- 80%
- Your down payment
- At least 20%
03
Above ₹75 lakh
- Bank can lend up to
- 75%
- Your down payment
- At least 25%
The bank also checks what you can repay: most lenders keep all your EMIs together within about 50–60% of your monthly take-home income. Stamp duty and registration charges are usually not financed — keep 6–8% of the property price aside for them in Maharashtra.
Chapter 03
An example
- Down payment (25%)
- ₹22.5 lakh
- Home loan
- ₹67.5 lakh
- Interest rate (illustrative)
- 8.5% a year
- Term
- 20 years
- Monthly EMI
- About ₹58,600
- Total interest over 20 years
- About ₹73 lakh
Paying just one extra EMI a year would finish the loan roughly 3 years early and save well over ₹10 lakh in interest.
Chapter 04
Fixed or floating rate?
- 01
Floating rate
Moves with the RBI’s policy rate. Most home loans are floating. There is no penalty for paying the loan off early.
- 02
Fixed rate
Stays the same for a set period, usually at a higher starting rate. Prepaying early may attract a charge.
When rates fall, ask your bank to move you to the lower rate — or switch lenders through a balance transfer.
Chapter 05
Documents you’ll need
- PAN card and Aadhaar
- Last 3–6 months’ salary slips
- Form 16 or last 2 years’ income tax returns
- 6–12 months’ bank statements
- Property papers: agreement for sale, title documents, approved plan
- For business owners: 2–3 years’ audited accounts and GST returns
Chapter 06
Tax benefits
- 01
Interest paid
Up to ₹2 lakh a year off your taxable income for a home you live in (Section 24b, old tax regime).
- 02
Principal repaid
Up to ₹1.5 lakh a year under Section 80C (old tax regime), along with other 80C investments.
- 03
Joint loans
If you and your spouse are co-owners and co-borrowers, each of you can claim these limits.
Chapter 07
How we help, step by step
- 1
Check your eligibility and the best EMI for your budget
- 2
Compare offers from several banks and housing finance companies
- 3
Prepare and submit the application with a complete document file
- 4
Follow up on property checks, sanction and disbursement
- 5
Review your rate every year and plan part-payments
Questions
Good toknow.
What credit score do I need?
A score of 750 or above usually gets the best rates. Loans are possible with lower scores, but at a higher rate.
Can I prepay my home loan?
Yes. On floating-rate loans taken by individuals, banks cannot charge a prepayment penalty. Even small part-payments early in the loan save a lot of interest.
Can I get a loan for an under-construction flat?
Yes. The bank pays the builder in stages as construction progresses, and you pay only interest on the amount released until the full loan is paid out.
Should I take home loan insurance?
It is optional. A separate term insurance policy covering the loan amount is usually cheaper and stays with you even if you switch lenders.
Keep reading
You mayalso need.
Loans are provided by partner banks and NBFCs and are subject to their credit assessment, terms and conditions. Interest rates, fees and eligibility vary by lender and borrower profile. We facilitate the process and do not lend directly. Rates shown are indicative ranges; the actual rate depends on the lender and your profile. Tax benefits depend on the law in force and your personal situation. The information on this website is for general educational purposes only and does not constitute investment, tax or legal advice. Please consult a qualified professional before making financial decisions.
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