A home loan is a twenty-year decision. Take a week over it.
Half a percent on a ₹30 lakh loan over twenty years is not a rounding error — it is several lakh rupees. Before you sign anything, it is worth knowing exactly what you qualify for, what the whole thing costs, and which lender is actually the cheapest for your particular profile.
What it covers
Six things a home loan can pay for.
Purchase
A new flat from a builder, an independent house, or a resale property. The lender funds a share of the agreement value and you bring the rest as your own contribution.
Plot and construct
Buying land and building on it under a single loan, disbursed in stages as construction reaches each milestone.
Construction on own land
You already hold the plot. The loan funds the building itself, against an approved plan and a cost estimate.
Renovation and extension
Adding a floor, rebuilding a portion, or a substantial improvement to a house you already own.
Balance transfer
Moving a running loan from an expensive lender to a cheaper one. Worth doing when the rate gap is meaningful and enough tenure is left.
Top-up
Additional money on an existing, well-serviced home loan — usually at close to home loan rates rather than personal loan rates.
Eligibility
What the lender is really measuring.
Two numbers decide almost everything. First, how much EMI your income can carry after your existing obligations — lenders work to a ceiling on total EMI as a share of monthly income. Second, how much of the property's value they are willing to fund, with the balance coming from your own pocket.
Everything else — age, employer, credit score, property location and title — either widens or narrows those two numbers.
Salaried vs self-employed
- Salaried: assessed on net salary, form 16 and salary credits in your bank account. Fastest route, usually the best rate.
- Self-employed: assessed on ITR and computation, audited accounts where applicable, and bank statement turnover.
- Cash-salaried or informal income: harder, but several lenders assess on banking turnover instead. Lender choice matters enormously here.
- Co-applicant: adding an earning spouse or parent raises the eligible amount and can improve the rate.
Paperwork
The document checklist.
Files stall because something is missing, not because the borrower is weak. Get these ready before you apply and the process runs weeks faster.
| Category | Salaried applicant | Self-employed applicant |
|---|---|---|
| Identity & address | Aadhaar, PAN, and one more accepted address proof for every applicant and co-applicant | |
| Income | Last 3 months' salary slips, Form 16 for 2 years, employment proof | ITR with computation for 2–3 years, audited P&L and balance sheet where applicable |
| Banking | 6 months' salary account statement | 12 months' current and savings account statements |
| Business proof | Not applicable | GST registration, Udyam certificate, trade licence or partnership deed |
| Existing loans | Sanction letters and repayment track record for every running loan or credit card | |
| Property — purchase | Sale agreement, prior title chain, approved plan, layout approval, latest tax receipt and encumbrance certificate | |
| Property — construction | Land documents, sanctioned building plan and an engineer's cost estimate | |
| Own contribution | Proof of the margin money you are putting in, and receipts for anything already paid to the seller or builder | |
Individual lenders add or drop items from this list. We will send you a checklist specific to the lender we shortlist, so you collect each paper once.
The real cost
What you pay beyond the EMI.
A low advertised rate can still be the more expensive loan once the one-time charges are added. Ask for all of these in writing before you choose.
Processing fee
Charged by the lender on sanction, usually a percentage of the loan with a cap. Often negotiable, and sometimes waived during offer periods.
Legal & valuation
The lender's advocate verifies the title and a valuer assesses the property. Payable whether or not the loan is finally disbursed.
Stamp duty & registration
Paid to the state government on the sale deed and on the mortgage. This is usually the largest one-time cost and is not funded by the loan.
Insurance
Property insurance is normally required. A loan protection policy is often offered alongside — check whether it is genuinely optional and whether the premium is being added to your loan.
Common questions
Home loan questions we get every week.
How much can I borrow on my salary?
Fixed rate or floating rate?
Is prepaying worth it?
Should I move my existing loan to another bank?
My property is in a village panchayat area. Will a bank fund it?
Your dreams | Our financial support
Send us the property papers.
We will tell you what can be funded, by whom, and roughly what it will cost you every month.
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