The First-Time Home Buyer's Loan Checklist for India

Know your loan-to-value cap before you shortlist

RBI norms let lenders fund up to 90% of the property value for loans up to ₹30 lakh, 80% between ₹30 lakh and ₹75 lakh, and 75% above ₹75 lakh. Value means the registered agreement value, not the price including stamp duty, registration, parking, club charges or GST.

For a ₹1 crore flat, a 75% cap means at least ₹25 lakh of your own money for the down payment, plus roughly ₹7–8 lakh of duty and registration in most metros. Model that full number in the EMI calculator before you commit to a booking amount.

The FOIR test lenders actually run

Most lenders keep total EMIs — including car loans, personal loans and credit-card obligations — inside 40–55% of net monthly income. That ratio, not the property price, decides your sanction. Closing a small personal loan often raises eligibility more than a higher salary would.

• Credit score of 750+ typically unlocks the lowest advertised rate slab
• Two to three years of stable income history for salaried applicants
• Three years of ITRs and audited financials for self-employed applicants
• Adding a co-applicant with income raises eligibility; adding one without income does not

Charges to budget beyond the price

Stamp duty ranges from about 4.9% in Gujarat to 7% plus registration in Tamil Nadu and Uttar Pradesh. On top of that, expect a processing fee of 0.25–0.5% of the loan, legal and technical verification charges, CERSAI fees, and 1% or 5% GST if the property is under construction.

Several states charge concessional duty when a woman is the sole or first owner — 4% instead of 6% in Delhi, 5% instead of 7% in Haryana. On a ₹1 crore purchase that is a ₹2 lakh saving for one line on the deed.

Fixed, floating or hybrid

Almost all Indian retail home loans are floating and linked to an external benchmark, usually the repo rate. That means your EMI or tenure moves with policy decisions. Fixed-rate offers carry a premium of 100–200 basis points and usually reset after a few years anyway.

Since floating loans carry no prepayment penalty for individual borrowers, a floating loan plus disciplined annual part-prepayment is generally the cheaper structure.