Before you shortlist flats, it helps to know roughly how much a bank will lend you. Lenders look at two things: how much EMI your income can carry, and how much of the property’s value they are allowed to fund. This guide explains both in plain terms.
1. How much EMI your income can carry
Lenders look at your net monthly income and your existing EMIs (car loan, personal loan, credit card dues). Most cap your total EMIs, including the new home loan, at a share of net income – often around half, though the exact limit varies by lender and income level. The remaining room, together with the interest rate and loan tenure, decides the maximum loan.
2. Loan-to-value limits
Reserve Bank of India guidelines limit how much of a property’s value a bank can lend for housing:
| Loan amount | Maximum loan-to-value |
|---|---|
| Up to Rs 30 lakh | 90% |
| Above Rs 30 lakh up to Rs 75 lakh | 80% |
| Above Rs 75 lakh | 75% |
The balance is your down payment. Stamp duty and registration are usually paid by you separately, so plan for them on top of the down payment.
3. Other factors lenders consider
- Credit score and repayment history – a clean record helps both approval and rate.
- Age and tenure – the loan usually has to end before retirement age set by the lender.
- Job stability – salaried, self-employed and business income are assessed differently.
- Co-applicant – adding an earning spouse or parent can increase eligibility.
- The project – lenders check the project’s approvals before funding.
How to raise your eligibility
- Close small loans or credit card dues before applying.
- Add an earning co-applicant.
- Choose a longer tenure (higher total interest, lower EMI).
- Increase the down payment.
A simple planning sequence
- Get an in-principle eligibility figure from two or three lenders.
- Add your savings for the down payment, stamp duty, registration and interiors.
- Shortlist flats within that total – compare on carpet area.
- Check the project before booking – see documents to check.
FAQs
Does pre-approval guarantee the loan?
No. Final sanction depends on the property and updated documents.
Can I get a loan for an under-construction flat?
Yes; disbursement is usually in stages linked to construction. See under-construction vs ready-to-move.
General information only. Rates, limits and policies vary by lender – confirm with your bank.
Looking at homes in Ravet NX? Onkar Greens by Auti Group offers 1, 2 & 3 BHK homes in Ravet NX (Ravet Annex), near Hinjewadi, Pune. Read the Onkar Greens FAQs or book a site visit from the home page.