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How to Apply for Home Loan India 2026

Apply for home loan up to ₹2Cr from major banks. 8.5-9.5% interest, 30-year tenure, PMAY subsidy.

📁 Banking ⏱️ 30-60 mins 💰 Free Application

About This Guide

Home Loan funds property purchase. Major lenders: SBI, HDFC, LIC HF, ICICI, PNB HF. 75-90% of property value. Tenure up to 30 years. Interest 8.5-10%. PMAY beneficiaries: ₹2.67L subsidy. Tax: ₹1.5L principal + ₹2L interest = ₹3.5L deduction.

Eligibility Criteria

Indian resident or NRI
Age 21-65 at maturity
Salaried: 3+ years employment, ₹25K+ income
Self-employed: 3-5 years business
CIBIL 700+
Property in India
No legal disputes

Documents Required

Keep these documents ready before starting application. Missing documents = delayed approval.

Aadhaar, PAN
Income proof (Form 16, 3 ITRs)
Bank statements 6 months
Salary slips 3 months
Property documents (sale deed, EC, mutation)
Approved building plan
Builder NOC
Photos
PMAY beneficiary letter

Step-by-Step Application Process

Follow these steps in order. Each step is critical - skip none.

Check Eligibility

Online calculators. Income, credit score, property value.

Compare Lenders

Banks vs HFCs. Interest rates, processing fee, hidden charges.

Pre-approval

Some banks offer before finalizing property.

Online Application

Bank portal/app. Personal, employment, income, property.

Submit Documents

Upload listed documents.

Property Valuation

Bank appraiser values property.

Legal & Technical Check

Lawyer verifies title (30-50 yrs EC). Engineer checks construction.

Loan Sanction

Sanction letter with amount, rate, tenure, EMI.

Loan Agreement

Sign. Property mortgaged.

Disbursement

To seller (full) or in tranches (under construction).

Apply PMAY Subsidy

After loan, apply at pmaymis.gov.in if eligible.

Key Benefits

Loan up to ₹2 crore (90%)
Tenure up to 30 years
Interest 8.5-10%
Tax: ₹1.5L principal + ₹2L interest
PMAY subsidy ₹2.67L
Insurance integrated
Pre-payment without penalty
Top-up loan facility

What Happens After Application?

15-45 days approval. EMI auto-debit. Track principal vs interest. Pre-pay extra to reduce tenure. After repayment, get original property documents.

Frequently Asked Questions

How much loan?

40-50x monthly net salary OR 75-90% of property value. Use calculator.

Floating vs fixed?

Floating: linked to repo rate, currently lower. 90%+ choose floating.

PMAY benefit?

After disbursement, apply at pmaymis.gov.in. Subsidy ₹2.67L credited to loan account in 6-9 months.