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Home LOAN

EMI should not exceed 40%–50% of your net monthly income

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Loan upto

Up to ₹1 cr+

Get Loan in

72 Hours

Starting Interest Rates from

7.35% per annum

A home loan is one of the most important financial decisions of your lifetime.
In late 2025, home loan processing has become more digital, with interest rates linked to RBI policies and updated government housing schemes like PMAY-U 2.0.

Home Loan Interest Rates

Most banks now follow Repo Linked Lending Rate (RLLR), meaning your interest rate fluctuates with RBI repo rate changes.

 

Public Sector Banks (SBI, Bank of Baroda, Central Bank)

Interest Rate:

7.35% – 9.15% (Floating)

Processing Fees:

₹2,000 – ₹10,000 + GST

Private Banks (HDFC, ICICI, Axis Bank)

Interest Rate:

7.90% – 9.50%

Processing Fees:

0.5% – 1.0% of loan amount

Housing Fin Companies (LIC HFL, Bajaj Housing Finance)

Interest Rate:

7.45% – 10.50%

Processing Fees:

Up to 2% of loan amount

Fixed vs Floating Rates

Over 95% of home loans are floating rate loans. Fixed-rate options are rare and usually 2–3% higher, making them less attractive.

 

Documents Required for Home Loan

Home loan documentation is more detailed because the property is mortgaged.

KYC Documents

PAN Card, Aadhaar Card, Voter ID

Property Documents

Sale Agreement / Sale DeedTitle deed chain (13–30 years)Builder or Society NOCOccupancy Certificate (OC)

Salaried Applicants

Last 3 months salary slipsForm 16 (last 2 years)Bank statements (last 6 months)

Self-Employed Applicants

Last 3 years ITR with computationCA-audited Balance Sheet & P&L (mandatory if turnover exceeds ₹2 Crores)GST returns (last 1 year)Business address proof

Eligibility Criteria

For Salaried Applicants

Age:

21 – 60 years

Minimum Income:

₹25,000 per month (Metro cities)

Credit Score:

750+ for best rates

Work Experience:

Minimum 2 years (1 year with current employer)

Eligibility Criteria

For Self-Employed Applicants

Age:

21 – 65 years

Minimum Profit:

₹5 Lakhs per year (as per ITR)

Credit Score:

750+ (very important for approval)

Business Continuity:

Minimum 3 years

Hidden Costs You Must Budget For

Apart from EMI, some costs must be paid upfront and are not covered by the loan.

Processing Fees: 0.5% – 1% + 18% GST

Legal & Technical Fees: ₹3,000 – ₹5,000

MODT / MOE Charges:

Stamp duty to register bank’s lien

Usually 0.2% – 0.5% of loan amount (varies by state)

CERSAI Charges: ₹50 – ₹500

Property Insurance: Mandatory insurance against fire and natural calamities

Home Loan Tax Benefits (FY 2025–26)

Tax benefits apply under the Old Tax Regime.

  • Section 80C:
    Deduction up to ₹1.5 Lakhs on principal repayment

  • Section 24(b):
    Deduction up to ₹2 Lakhs on interest for self-occupied property

Government Housing Scheme: PMAY-U 2.0

The earlier CLSS subsidy scheme has ended for many categories. The updated PMAY-U 2.0, launched in late 2024, introduces the Interest Subsidy Scheme (ISS).

Eligible Income Groups: EWS, LIG, Lower MIG

Maximum Annual Income: Up to ₹9 Lakhs

Subsidy: 4% interest subsidy on first ₹8 Lakhs

Maximum Benefit: Approx ₹1.80 Lakhs (paid in 5 yearly installments)

High-income applicants (MIG-II) generally do not qualify for subsidies.

Step-by-Step Home Loan Process

Sanction Letter

Submit income documents; bank checks CIBIL and issues sanction letter (valid for 6 months).

Property
Finalization

Property documents submitted to the bank.

Legal & Technical Verification

Lawyer verifies title; engineer evaluates property value.

Disburse

Loan agreement is signed and amount is paid directly to the seller or builder.

Ready for Home?

Get your lowest-rate Home loan quote today. 

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