1. What Is a Home Loan?
A home loan is a secured financial facility provided by banks and Housing Finance Companies (HFCs) to fund property purchases. The purchased residential unit acts as collateral until the loan is fully repaid.
2. Loan-to-Value (LTV) Limits in India
According to RBI guidelines, banks can sanction:
• Up to 90% for property values up to ₹30 Lakhs.
• Up to 80% for property values between ₹30 Lakhs and ₹75 Lakhs.
• Up to 75% for property values above ₹75 Lakhs.
3. Selecting Loan Tenure & Repayment Terms
Standard home loan tenures range from 5 to 30 years. Choosing a longer tenure lowers your monthly EMI but increases overall interest payable.
Frequently Asked Questions
Q:What is the maximum loan tenure available for salaried buyers?
Most Indian banks offer home loan tenures up to 30 years, subject to the applicant's retirement age (typically capped at 60 years).
Related Home Loan Guides
How EMI Is Calculated: Formula & Financial Components
Understand the mathematical EMI formula, interest compounding, and monthly principal vs interest breakdown.
Read Guide →Fixed vs Floating Interest Rates: Making the Right Choice
Compare fixed interest stability with floating rate flexibility and zero prepayment penalty benefits.
Read Guide →How Much Home Loan Can You Afford?
Practical rules of thumb, Debt-to-Income (DTI) ratios, and emergency fund planning for property buyers.
Read Guide →PropertyCRM Operating System
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