A home loan is the most common way Indians finance their property purchase. With interest rates at competitive levels, it's a good time to understand the process and plan your purchase wisely.
Current Interest Rates (2026)
Most banks offer home loans between 8.25% - 9.5% per annum. SBI, HDFC, ICICI, and Bank of Baroda are among the popular lenders. Rates vary based on your credit score, loan amount, and employment type.
Eligibility Criteria
- Age: 21-65 years (at loan maturity)
- Income: Minimum ₹25,000/month for salaried; ₹3 Lac/year for self-employed
- Credit Score: 700+ preferred (750+ for best rates)
- Employment: Minimum 2 years experience (salaried) or 3 years (business)
Documents Required
Salaried: PAN, Aadhaar, salary slips (3 months), bank statements (6 months), Form 16, offer letter.
Self-employed: PAN, Aadhaar, ITR (3 years), business proof, bank statements (12 months), P&L statements.
Tips to Get Approved Faster
- Maintain a credit score above 750
- Keep your EMI-to-income ratio below 40%
- Clear existing loans before applying
- Apply jointly with spouse for higher eligibility
- Choose a RERA-registered project (banks prefer them)
Tax Benefits
Under Section 24(b), you can claim up to ₹2 Lac deduction on interest. Under Section 80C, up to ₹1.5 Lac on principal repayment.
