Home-loan eligibility decides how much a bank will lend you; affordability decides how much you *should* borrow. Getting both right protects you from overstretching for 20–30 years.
Key takeaways
- Banks usually lend up to 75–90% of the property value (loan-to-value), depending on loan size.
- EMI capacity is typically capped at 40–60% of net income across all loans.
- You need to fund the down payment plus stamp duty, registration and other costs yourself.
- A good credit score, co-applicant and longer tenure increase eligibility.
Loan-to-value (LTV) caps
| Loan amount | Maximum LTV |
|---|---|
| Up to ₹30 lakh | 90% |
| ₹30 lakh – ₹75 lakh | 80% |
| Above ₹75 lakh | 75% |
Stamp duty and registration are usually not financed as part of the property value.
Estimating your eligibility
Net income ₹1,20,000/month, existing EMIs ₹10,000, allowed FOIR 50%:
- EMI capacity = ₹60,000 − ₹10,000 = ₹50,000
- At 8.5% for 20 years, ₹50,000 EMI supports about ₹57.6 lakh.
Upfront costs to budget
| Cost | Typical |
|---|---|
| Down payment | 10–25% of property value |
| Stamp duty & registration | ~5–8% (varies by state; some concessions for women) |
| Processing fee | Up to ~0.5–1% + GST |
| Legal/valuation, interiors, moving | Varies |
Affordability rules of thumb
- Keep total EMIs within ~40% of take-home pay.
- Keep 6 months of expenses + EMIs as an emergency fund after buying.
- Property price ideally within ~5–6× annual household income.
- Buy term insurance to cover the loan.
Improving eligibility
- Add an earning co-applicant (spouse, parent).
- Close personal loans or card debt first.
- Choose a longer tenure (then prepay).
- Improve your credit score before applying.
Use our home loan guide and EMI calculator.
Your action checklist
- Check your credit report and fix errors at least a month before applying.
- Get the Key Fact Statement (KFS) with APR from at least two lenders.
- Keep total EMIs within about 40–50% of take-home pay.
- Read prepayment, foreclosure and penal-charge clauses before signing.
- Save the sanction letter, KFS and repayment schedule; collect the no-dues certificate when you close.
FAQs
Can I get 100% financing?
No — RBI's LTV caps mean you must pay the margin yourself.
Does a co-applicant have to be a co-owner?
Many banks require co-applicants to be co-owners; check the policy.
