HomeLoans

As a working rule, lenders size the EMI at roughly 40–55% of net monthly income depending on your income band and existing obligations, and lend up to 75–90% of property value depending on ticket size. For a salaried applicant taking home ₹1 lakh a month with no other EMIs, that typically supports a loan in the range of ₹45–60 lakh over twenty years. Existing EMIs reduce it directly, and a co-applicant with income increases it.

Salaried: PAN, Aadhaar, last three months' salary slips, six months' bank statements, Form 16 or two years' ITR, and the property papers. Self-employed: PAN, Aadhaar, three years' ITR with computation, audited financials, GST returns where applicable, twelve months' current-account statements, business proof and the property papers. We give you a single checklist rather than letting the bank ask in instalments.

A complete, well-documented salaried file typically moves from application to sanction in one to two weeks, with disbursal following legal and technical valuation. Self-employed and property-backed cases usually run two to four weeks. The delays are almost always documentation or title, not the bank — which is why we front-load the checklist.

Not always, but it costs you. Most lenders price their best rate for scores above roughly 750; below about 700 you will face a higher spread, a lower loan-to-value, or rejection. If your score is weak for a fixable reason — a closed card still showing as outstanding, a settled account never marked settled — it is usually worth spending two months correcting the record before applying, and we will tell you when that is the better move.

On floating-rate home loans taken by individuals, the RBI does not permit lenders to charge foreclosure or prepayment penalties. Fixed-rate loans and loans in a company's name are treated differently and can carry a charge, so check which one you actually hold before making a large prepayment.

A longer tenure with disciplined prepayment gives you the same outcome as a short tenure plus a safety valve — if income drops you can fall back to the smaller contractual EMI instead of defaulting. It only works if the prepayments actually happen. If you know they will not, take the shorter tenure and let the contract enforce the discipline.