Home Loan Basics: Everything First-Time Buyers Need to Know
Buying your first home is exciting, but the loan process can feel overwhelming if you don't know what to expect. Here's a plain-language walkthrough of how home loans work in India.
How much can you borrow?
Lenders typically finance 75-90% of the property's value, depending on the loan amount, and require you to fund the rest as a down payment. The exact loan amount you qualify for depends on your income, existing EMIs, credit score, and the tenure you choose. As a rough guide, your total EMIs (including the new home loan) usually shouldn't exceed 40-50% of your monthly take-home income.
Fixed vs floating interest rates
- Floating rate: Linked to an external benchmark (like the repo rate). Your EMI or tenure can change when the benchmark moves. Most home loans in India are floating rate.
- Fixed rate: Stays constant for a set period, offering predictability but usually at a slightly higher starting rate.
Loan tenure
Home loans in India typically run from 5 to 30 years. A longer tenure lowers your EMI but increases the total interest you pay over the life of the loan. Use an EMI calculator to compare tenures before deciding — try ours on the EMI Calculator page.
Credit score matters
A CIBIL score of 750 or above generally gets you the best interest rates. Before applying, check your credit report and clear any outstanding dues or errors.
Key costs beyond the EMI
Budget for processing fees (usually 0.5-1% of the loan amount), stamp duty and registration charges, and a small buffer for legal/technical verification fees charged by the lender.
Once you're ready to talk numbers, explore our current projects across Gurgaon and Bangalore, or reach out to our team for help connecting with lending partners.