Home loan checklist: eligibility, documents and EMI basics
What lenders look at, the documents to keep ready, and how tenure and interest rate change your monthly EMI.
A little preparation makes the home loan process much faster. Here is what banks and housing finance companies usually ask for, and how to think about your EMI.
What decides your eligibility
- Income and stability — salary slips or business income, and how long you have been earning it.
- Existing EMIs — most lenders keep your total EMIs within roughly half of your monthly income.
- Credit score — a good score usually gets you a better rate.
- Age and tenure — the loan generally has to end before retirement age.
Documents to keep ready
- PAN, Aadhaar and address proof
- Last 3–6 months of salary slips and 6 months of bank statements (salaried)
- Two to three years of ITRs and financials (self-employed)
- Property papers: allotment letter or agreement for sale, RERA registration, approved plans, and the builder's NOC for under-construction homes
How EMI works
Your EMI depends on three things: the loan amount, the interest rate and the tenure. A longer tenure lowers the EMI but increases the total interest you pay. Try a few combinations in our EMI calculator — it also shows a year-by-year schedule.
Tax benefits (old tax regime)
For a self-occupied home, interest of up to ₹2 lakh a year can be deducted under Section 24(b), and principal repayment counts towards the ₹1.5 lakh limit under Section 80C. The new tax regime does not allow these deductions for self-occupied property, so compare both regimes with your tax adviser.
Get a sanction letter before you book. It tells you exactly how much you can borrow, and makes negotiating with the developer easier.
