A home is the one loan almost nobody regrets. It is also the largest financial commitment most families ever make, which is exactly why it is worth understanding properly rather than signing whatever the builder's preferred bank puts in front of you.
What you can borrow
Home loans run up to around ₹5 crore, typically covering up to 90% of the property value, over tenures as long as 30 years, from about 8.5% p.a. The long tenure is the point: it is what makes a large amount affordable month to month.
The remaining 10–20% — plus stamp duty, registration and legal costs — comes from you. Budget for that upfront; it is where first-time buyers most often get caught short.
The tax benefits are real money
- Section 24 — deduction on the interest you pay on a home loan.
- Section 80C — deduction on the principal you repay.
- Additional benefits may apply for first-time buyers depending on the scheme and the rules in force.
These meaningfully reduce the effective cost of borrowing, and they are the reason a home loan is usually the cheapest large debt available to a household. Check the current limits and your own eligibility with a tax adviser — the rules change.
Get these right before you apply
- Clear title on the property, and approved building plans.
- A credit score in good shape — it directly sets your rate on a very large loan.
- Existing EMIs low enough that the new one fits your income.
- Income documents in order — ITRs, salary slips, six months of bank statements.
Purchase is not the only use
Home loans also cover construction on a plot you own, the plot purchase itself, and renovation. And if you already have one at a high rate, a balance transfer can move it cheaper — often with a top-up for the work you have been postponing.
How LoanBandhu helps
We compare lenders on the rate and the terms that matter over 20 years — prepayment rules, how the floating rate is set, what the total cost actually comes to — then negotiate and handle the paperwork end to end. On a loan this size, a fraction of a percent is worth getting right.