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Home loans

Who qualifies, the documents you'll need, and how banks check a property. Updated 18 October 2026.

This guide is general information to help you prepare. It is not financial or legal advice. Every bank sets its own rules, rates and fees, and they change often, so confirm the details with your bank before you sign or pay anything.

The short answer

The bank checks you: your age, income, job or business, existing loans and credit score. This decides how much it will lend.
The bank checks the property: a lawyer checks the title and an engineer values the property. This decides whether it will lend at all, and caps the loan at a share of the property's value.
You pay the rest yourself: the down payment, plus stamp duty and registration, which banks usually don't count in the loan. ²

Get the bank to check the property before you pay a large advance to the seller. If the bank refuses the property, that's a warning sign for you too.

Work out your numbers: our home loan calculator shows your EMI, how much your income can borrow and the down payment a price needs. You can also ask us for help with a loan there.

Who qualifies

Banks look at the same few things. The limits differ from bank to bank, so ask each one.

Age	You need to be an adult when you apply, and the loan has to end before the bank's age limit (often around retirement age). The older you are, the shorter the loan the bank will give, and the higher the EMI.
Income	Banks work out how much EMI you can afford from your steady monthly income, after the EMIs you already pay. Regular, provable income matters more than a high one-off figure.
Job or business	Salaried people usually need some time in their current job. Self-employed people and business owners usually need a few years of income tax returns showing a steady business.
Credit score	Your CIBIL (or other credit bureau) score shows how you've repaid loans and cards. Lenders set their own minimum; a higher score usually means a better rate. You can see your own report free once a year. ⁹
Existing loans	Car loans, personal loans and card dues reduce what you can borrow. Clearing a small loan before you apply can raise your limit.
Co-applicant	Adding a spouse or parent with their own income can raise the loan amount. Many banks ask that co-owners of the property also join the loan.

How much of the price the bank will lend

The RBI caps a bank's housing loan at a share of the property's value, called the loan-to-value (LTV) ratio. Banks can lend less than this, never more. ¹

Loan amount	Most the bank can lend	You pay at least
Up to ₹30 lakh	90% of the value	10%
Above ₹30 lakh, up to ₹75 lakh	80%	20%
Above ₹75 lakh	75%	25%

The “value” is the bank's own valuation, which can be lower than the price you agreed. Stamp duty and registration are left out of it, except for small homes costing up to ₹10 lakh. ² Housing finance companies follow their own, similar rules.

Government help: PMAY-Urban 2.0

Families in towns and cities with a household income up to ₹9 lakh a year, and no pucca house anywhere in India, may get an interest subsidy on a home loan under PMAY-Urban 2.0. There are limits on the loan, the price and the size of the home. Ask your bank whether you qualify and to apply for you. ⁷ Check yourself first with our PMAY subsidy check.

Documents you'll need

Banks have their own checklists, but expect most of these. Keep clear copies ready to save weeks.

About you (everyone on the loan)

Application form and recent passport photos.
PAN card.
Proof of identity and address, such as a passport, voter ID, driving licence or Aadhaar. If you give a copy of your Aadhaar (it's optional), black out the first 8 digits so only the last 4 show, or use UIDAI's masked Aadhaar. ⁶
Bank statements for the last 6 months or more, for every account your income comes into.
Statements for any loans you already have.

If you're salaried

Salary slips for the last few months.
Form 16 or income tax returns for the last 2 years.
An employment letter or ID card, if the bank asks.

If you're self-employed or run a business

Income tax returns, with the computation of income, for the last 2 to 3 years.
Profit and loss account and balance sheet, often audited by a CA.
Proof the business exists, such as GST registration, a shop licence or a partnership deed.
Business bank statements.

About the property

The agreement to sell, or the builder's allotment letter and buyer's agreement.
The chain of earlier sale deeds, so the bank's lawyer can trace the title.
The revenue record: a fresh fard (certified copy of the jamabandi) and the latest mutation. In J&K a fard is valid only for a short time, so get one close to the date. Our land records guide explains these.
The approved building plan, and a completion or occupancy certificate for a ready home.
For a new project: the builder's RERA registration and the bank's project approval, if it has one.
Receipts for anything you've already paid the seller or builder.
For Chandigarh sector property: the Estate Office papers, and transfer permission for leasehold property.

How banks check a property

The bank is lending against the property, so it checks the property as carefully as it checks you. There are two main checks. ⁸

1. Legal check (title)

A lawyer on the bank's panel reads the chain of deeds and the revenue record, usually going back many years, and writes a title report. It says whether the seller owns the property clearly and can sell it. ⁸
They look for existing loans and charges, at the Sub-Registrar's office and on CERSAI, the central register where lenders record loans against property. ¹⁰
They check that every co-owner is selling, that inheritance mutations are done, and that no one else has a claim.
In J&K and Himachal they also check the type of land. Agricultural land has special rules on who can buy it, and banks generally won't give a home loan on it.

2. Technical check (valuation)

An engineer or valuer visits the property. They check it matches the approved plan, measure it, look at the quality and age of the building, and put a market value on it. ⁸ Our valuation guide explains what the valuer does.
The loan is based on this value, not on the price you agreed. If the valuation comes in low, you pay the difference.
Extra floors or rooms that aren't in the approved plan can lower the value, or stop the loan. Land in a flood or landslide zone, or without a proper road, can too.

New projects and under-construction homes

Many banks “approve” a project in advance after checking the builder's title and approvals. A project your bank has approved usually goes faster. Ask the builder which banks have approved it, and confirm with the bank.
Check that the project is registered with the state RERA. Our RERA guide shows how to look it up.
The bank pays the builder in stages, as construction progresses, not all at once. The RBI has told banks not to pay upfront for incomplete projects. Until the full loan is paid out you usually pay only interest on the amount released (“pre-EMI”). ³

From application to keys

Check your credit report and fix any mistakes before you apply.
Get an in-principle approval from one or two banks, so you know your budget before you agree a price.
Compare offers using the Key Facts Statement. Since October 2024 lenders must give you one before you sign, showing the rate, the total cost and every fee. A fee that isn't in it can't be charged later without your consent. ⁵
Apply with the property papers, and let the bank do its legal and technical checks.
Get the sanction letter. Read the conditions, the rate type and the tenure.
Register the sale deed and sign the loan agreement. The bank usually keeps the original deed until the loan is repaid.
The bank pays the seller or builder, all at once for a ready home, or in stages.

Good to know

Prepaying is free on a floating-rate loan. Banks can't charge a penalty when an individual pays off a floating-rate home loan early, in part or in full. ⁴
Fixed or floating: a floating rate moves with the bank's benchmark rate, up or down. Ask how often it's reset and what it's linked to.
Insurance is your choice. Banks often offer loan insurance; you can usually buy a plain term policy elsewhere instead. Ask before you sign.
When you finish paying, collect the original deed and a no-dues letter, and make sure the bank removes its charge from CERSAI. ¹⁰

Red flags: stop and ask

The bank's lawyer raises a title query and the seller won't answer it.
No bank will lend on the property, or a seller says “banks don't fund here, pay cash”.
A builder offers to pay your EMIs until possession: the RBI has warned banks about such schemes. ³
Someone asks for a fee to “guarantee” your loan approval.
Pressure to pay a large advance before the bank has checked the property.

What Clayyard does, and what it doesn't

Clayyard doesn't lend money. We check the agents and the photos on each listing, and builder projects come to us directly from the builder. The bank, its lawyer and your own lawyer check the title and the value of the property.

Sources

Have a question about home loans? Contact us.