A little preparation before you apply can make your home loan faster to approve and cheaper over its life. Here is a practical checklist.
1. Know how much you can borrow
Banks look at your income, existing EMIs, age, job stability and credit score. As a rule of thumb, most lenders prefer your total EMIs (including the new home loan) to stay within roughly half of your monthly take-home income.
RBI rules also cap the loan-to-value (LTV) ratio — the share of the property value a bank can finance:
- Loans up to ₹30 lakh: up to 90% of the property value
- Loans above ₹30 lakh and up to ₹75 lakh: up to 80%
- Loans above ₹75 lakh: up to 75%
The rest — plus stamp duty, registration and other costs — comes from your own savings, so plan your down payment early.
2. Check your credit score
Get your credit report from a credit bureau, correct any errors, and avoid new loans or card applications just before applying. A stronger score can mean a better interest rate.
3. Documents you will usually need
Personal and income
- PAN, Aadhaar and address proof, photographs
- Salaried: recent salary slips, Form 16 and 6 months of bank statements
- Self-employed: 2–3 years of ITRs with computation, business proof and bank statements
Property
- Agreement to sell / allotment letter and the seller's title documents
- Approved plans and approvals (or RERA registration for new projects)
- Receipts of payments already made
4. Compare offers properly
Compare not just the interest rate but processing fees, whether the rate is linked to an external benchmark, prepayment terms and the time taken to sanction and disburse.
5. Plan an EMI you are comfortable with
Use our EMI calculator to try different loan amounts, rates and tenures. A longer tenure lowers the EMI but increases total interest; prepaying even small amounts early in the loan can save a lot of interest.
Need help? Our team can connect you with leading banks and help you prepare the property documents lenders ask for. Request a call back.
