Home Loan Guide Eligibility, EMI & documents
Compare lenders beyond just the interest rate. Understand eligibility, required documents, and how to structure your loan smartly.
Before you apply
- Check your credit score and clear small dues if possible.
- Plan your down payment and keep extra funds for registration & interiors.
- Prefer a pre-approval / sanction to negotiate confidently.
Eligibility factors (what lenders look at)
- Income stability, existing EMIs, and employer/business profile.
- Age and remaining earning years (loan tenure fit).
- Property type, builder profile, and legal/technical clearance.
Fixed vs floating interest
- Fixed can help predict EMIs early on; floating can benefit when rates fall.
- Compare the spread, reset frequency, and switching terms.
Documents you’ll usually need
- KYC: PAN, Aadhaar, address proof, photos.
- Income: salary slips / ITRs, bank statements, Form 16 (as applicable).
- Property: allotment/booking, agreement draft, approvals, and builder papers.
Compare lenders using the total cost
- Processing fee, legal/technical charges, and insurance add-ons.
- Part-prepayment rules, foreclosure charges, and conversion fees.
Useful tools
Frequently Asked Questions
1. How much home loan can I get?
Most lenders offer up to 75–90% of the property value as a home loan, depending on the property type and your income. The loan amount also depends on your credit score, existing EMIs, age, and employer profile. Use an EMI calculator to estimate what monthly repayment you can comfortably afford.
2. What is the minimum CIBIL score required for a home loan?
Most banks and HFCs prefer a credit score of 750 or above for competitive interest rates. A score between 650–749 may still get approval but often at higher rates. Clearing small outstanding dues and avoiding loan inquiries before applying can significantly improve your score.
3. What is the difference between fixed and floating home loan rates?
A fixed rate stays constant for the loan tenure (or a fixed period), giving payment predictability. A floating rate changes with market benchmarks (like the repo rate), so EMIs may go up or down. Floating rates are generally lower to start with, but fixed rates protect you from rate hikes. Compare the spread, reset period, and switching charges before deciding.
4. What documents are required to apply for a home loan?
Typically you'll need KYC documents (PAN, Aadhaar, address proof), income proof (salary slips, ITRs, Form 16, or business financials), bank statements for 3–6 months, and property documents (allotment letter, agreement draft, approved plans, builder papers). Exact requirements vary by lender.
5. Should I get a home loan pre-approval before searching for a property?
Yes, a pre-approval (in-principle sanction) is highly recommended. It clarifies your actual budget, helps you negotiate with sellers from a position of strength, and speeds up the disbursement once you finalise a property. It is usually valid for 3–6 months.
Next reads
Ready to finance your dream home?
Get the full picture – explore our complete buying guide for a stress-free purchase.
View buying guide