Home Loan Basics: Eligibility, Down Payment and EMI
Updated 26 October 2026
Most flats are bought with a home loan. These answers cover how much a bank will lend, what you pay yourself, and what the monthly instalment looks like. Interest rates change, so confirm the current rate and fees with your bank.
How much home loan can I get on a flat?
RBI caps the loan at a share of the property value: up to 90% for loans up to ₹30 lakh, 80% for ₹30–75 lakh and 75% above ₹75 lakh. Your income and existing loans then decide how much of that the bank will actually lend.
How much down payment do I need?
The part of the price the loan doesn’t cover, at least 10–25% of the value, plus stamp duty, registration and the builder’s extra charges, which banks usually don’t finance.
How is EMI calculated?
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan, r the monthly interest rate and n the number of months. A ₹50 lakh loan over 20 years at 8.5% a year is about ₹43,400 a month. Every project page on this site has an EMI calculator.
How much loan am I eligible for on my salary?
Most banks keep all your EMIs within 40–60% of take-home pay. As a rough guide, ₹1 lakh a month supports an EMI of ₹40,000–50,000, which is a loan of about ₹46–58 lakh over 20 years at 8.5%.
Can I get a home loan for an under-construction flat?
Yes, if the project is approved by your bank. The bank pays the builder in stages as construction progresses, and until possession you usually pay only interest on the amount released (pre-EMI).
What costs come with a home loan?
A processing fee, legal and valuation charges, stamp duty on the loan documents and optional insurance. Ask the bank for a written list and compare the total cost, not only the interest rate.
Can I get a home loan if I already have another loan?
Yes, if all your EMIs together stay within the bank’s limit. Closing a small loan first can raise how much you can borrow.
Can stamp duty and registration be added to the home loan?
Usually not. Banks lend against the property value, so plan to pay stamp duty and registration from your savings.
Fixed or floating interest rate?
Most home loans in India are floating, linked to an external benchmark such as the RBI repo rate, so the EMI or tenure changes when rates move. Banks don’t charge individuals a penalty for prepaying a floating-rate home loan.
This guide is general information, not legal or financial advice. Rules and charges change; confirm them with the official source or a professional before you commit.