Complete Home Loan Guide 2026 — Rates, Eligibility & Process

Home loan rates in India currently range from 8.25% (SBI, Bank of Baroda) to 10.5% (NBFCs). Most banks offer floating rates linked to the RBI repo rate. Here's a comparison of top lenders:

• SBI — 8.25% onwards (lowest for salaried, ₹5L+ salary)
• HDFC Bank — 8.45% onwards
• ICICI Bank — 8.40% onwards
• Bank of Baroda — 8.30% onwards
• Axis Bank — 8.55% onwards
• PNB Housing — 8.50% onwards

Rates depend on your credit score, loan amount, property type (ready/under-construction), and employment type (salaried vs self-employed). A CIBIL score of 750+ typically gets you the best rates.

Banks typically consider these factors:

Age: 21-65 years (loan tenure + age should not exceed 65-70) Income: Minimum ₹25,000/month for salaried; ₹2L+ annual for self-employed CIBIL Score: 650+ (minimum), 750+ (best rates) Employment: Minimum 2 years experience (salaried) or 3 years vintage (business) Property: Should be approved by the bank; clear title documents required LTV Ratio: Banks fund 75-90% of property value; rest is your down payment

The maximum EMI-to-income ratio is typically 50-60%. If your monthly income is ₹1L, your total EMIs (all loans combined) should not exceed ₹50-60K.

Identity & Address: Aadhaar, PAN, passport, voter ID Income Proof (Salaried): Last 3 months salary slips, 6 months bank statements, Form 16 Income Proof (Self-Employed): 3 years ITR, balance sheet, P&L, GST returns Property Documents: Sale agreement, title deed, builder approvals, NOC Others: Passport-size photographs, processing fee cheque

Pro tip: Keep your last 6 months bank statements clean — no cheque bounces, maintain minimum balance, and avoid cash deposits above reporting limits.

Floating Rate (recommended): Currently 8.25-9.5%, changes with RBI repo rate. Most Indian home loans are floating. Benefit: No prepayment penalty under RBI guidelines.

Fixed Rate: 1-2% higher than floating (10-11%). Provides EMI certainty but costs more overall. Some banks offer 'fixed for X years, then floating' hybrid options.

Verdict: In the current rate cycle, floating rates are better. RBI has paused rate hikes, and any future cuts will directly reduce your EMI. Fixed rates make sense only if you expect significant rate increases.

Home loans offer the most generous tax deductions in India:

• Section 80C: Up to ₹1.5 Lakh deduction on principal repayment
• Section 24(b): Up to ₹2 Lakh deduction on interest (self-occupied property)
• Section 80EEA: Additional ₹1.5 Lakh for first-time buyers (stamp value ≤ ₹45L)

Joint Loan Benefit: Both co-borrowers can claim deductions individually, effectively doubling the tax savings to ₹7L+ annually.

For a ₹50L loan at 8.5% for 20 years, the tax savings alone can be ₹15-25 Lakh over the loan tenure.

Stamp duty varies by state and typically ranges from 3-8% of property value:

• Maharashtra: 5% (6% in Mumbai)
• Karnataka: 5%
• Delhi: 4% (men), 4% (women get 1% rebate in some cases)
• Tamil Nadu: 7%
• UP: 5% (women get 1% rebate)

Registration charges are typically 1% of property value. Some states offer reduced stamp duty for women buyers — buying in a woman's name or as joint owner can save ₹50K-2L.