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Most banks require a minimum CIBIL score of 700 to sanction a home loan. However, 750+ gives you the best interest rates and highest loan eligibility. SBI and public sector banks can sometimes approve at 650+ with higher interest. Below 650, a co-applicant with a better score can help. Banks also consider Equifax and Experian scores.

There's no fixed upper cap — most banks finance up to 75–90% of the property value depending on loan amount. Eligibility depends on your income, FOIR ratio, and repayment capacity. As a rough guide, banks offer 50–60x your monthly net salary as maximum home loan. So someone earning ₹1 Lakh/month can get up to ₹50–60 Lakh subject to other factors.

Floating rate: Linked to RBI Repo Rate — changes when RBI changes rates. Currently lower (7.25–8.5%). No prepayment penalty. Best for long-tenure loans as you benefit from rate cuts. Fixed rate: Rate doesn't change for the fixed period (2–5 years typically), then converts to floating. Slightly higher than floating but gives payment certainty. No prepayment allowed during fixed period. Most experts recommend floating rate for 15+ year home loans.

FOIR (Fixed Obligation to Income Ratio) = (All Monthly EMIs ÷ Monthly Net Income) × 100. Banks want FOIR below 40–50%. Example: If you earn ₹1 Lakh/month and have existing EMIs of ₹20,000, your FOIR is 20%. The remaining 20–30% can be used for new home loan EMI, which means you can afford an EMI of ₹20,000–₹30,000. Higher income, lower existing EMIs = higher home loan eligibility. Close credit cards and small loans before applying.

Longer tenure (25–30 years): Lower monthly EMI but much higher total interest paid. Best when cash flow is tight. Shorter tenure (10–15 years): Higher monthly EMI but dramatically lower total cost. Expert tip: Take a 20–30 year tenure for lower EMI, but prepay whenever you have surplus funds. Floating rate loans have zero prepayment penalty (RBI rule). Even small prepayments of ₹5,000–₹10,000/month can cut 8–10 years from your tenure.

Salaried employees with salary slip + Form 16 can usually avoid ITR for 2 years. But for self-employed/business owners, 3 years of ITR is mandatory at most banks. Some NBFCs and small finance banks offer loans on bank statement basis without ITR — but at higher rates (10–13%). Bank statement loans (last 12–24 months average credit balance/turnover) are becoming popular for informal income earners. Car Spider can help you find the right lender for your profile.

When you buy an under-construction property, the bank disburses loan in stages. During construction (before full disbursement), you pay only interest on the disbursed amount — this is called Pre-EMI. Full EMI starts after possession. Example: Loan ₹50L at 8.5%. Stage 1: Bank disburses ₹10L → you pay ₹7,083 Pre-EMI. Stage 2: Bank disburses another ₹15L → Pre-EMI on ₹25L total. After full ₹50L disbursement → full EMI of ₹43,391 starts. Pre-construction interest is tax-deductible over 5 years under Section 24(b).

Balance transfer makes sense when: (1) The rate difference is at least 0.5% (ideally 1%+), (2) Significant tenure remains (minimum 5 years, ideally 10+ years), (3) Your CIBIL score has improved significantly since original loan. Calculate carefully: New processing fee (0.25–0.5%) vs interest saved. No prepayment penalty on floating rate loans (RBI regulation). Best time: After 3–5 years of loan, when outstanding is still high and you've found a much better rate. Car Spider can calculate exact savings for you — free.

LTV (Loan-to-Value) = Maximum % of property value a bank will finance. As per RBI rules: Loans ≤ ₹30 Lakh: Up to 90% LTV (10% down payment). Loans ₹30L–₹75L: Up to 80% LTV (20% down payment). Loans >₹75 Lakh: Up to 75% LTV (25% down payment). Example: Property worth ₹60L, loan ₹50L = LTV 83.3% — bank will finance max 80% = ₹48L. You must pay ₹12L (20%) from own funds. Stamp duty + registration (5–8% of property value) must be paid separately from own funds — not covered in home loan.

Yes! NRIs (Non-Resident Indians), PIOs (Person of Indian Origin), and OCIs (Overseas Citizen of India) can avail home loans in India for residential properties. Key points: Loan disbursement in Indian Rupees only. EMI repayment from NRE/NRO account. Power of Attorney required for applications done overseas. Most major banks — SBI, HDFC, ICICI, Axis — have dedicated NRI home loan products. Documentation includes overseas employment contract, NRE/NRO bank statements, and standard KYC. Same interest rates as resident Indians at most banks.