A home loan is one of the largest financial commitments of your life. Understanding how they work will help you get the best deal and avoid costly mistakes.
How Much Can You Borrow?
Banks in India typically lend up to 80-90% of the property value (Loan-to-Value ratio). The maximum loan amount is also limited by your repayment capacity: most banks limit EMI to 40-50% of your net monthly income. Use our formula: Loan Amount = (Monthly Income × 40%) / EMI per lakh at current rate.
Interest Rates in 2026
Home loan interest rates from major banks currently range from 8.5-9.5% per annum (floating rate). RBI repo rate changes directly affect floating rate home loans — when RBI cuts rates, your EMI or tenure reduces.
Documents Required for Home Loan
- Salaried: Last 3 months salary slips, Form 16, last 6 months bank statements
- Self-employed: Last 3 years ITR, CA-certified P&L, last 6 months bank statements
- Both: PAN, Aadhaar, property documents, passport size photos
Tax Benefits on Home Loan
- Section 24(b): Deduction of up to ₹2 Lakhs per year on home loan interest
- Section 80C: Deduction of up to ₹1.5 Lakhs on principal repayment
- First-time buyers: Additional ₹50,000 deduction under Section 80EE
Our team can help you get pre-approved home loans from 15+ banks at the best rates. Call 9971116724.
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