Home loans in Bangalore
What a bank will really lend you, what it checks before saying yes, and how to compare offers without four hard enquiries on your credit report.
How much of the price will a bank actually lend?
Less than most buyers plan for. RBI caps the loan-to-value ratio by loan size, and that cap applies to the property value the bank assesses, not the price you negotiated. Stamp duty and registration are never included.
| Loan amount | Maximum LTV | What that means |
|---|---|---|
| Up to ₹30 lakh | 90% | ₹3 lakh on a ₹30 lakh flat down, minimum |
| ₹30 lakh – ₹75 lakh | 80% | ₹10 lakh on a ₹50 lakh flat down, minimum |
| Above ₹75 lakh | 75% | ₹25 lakh on a ₹1 crore flat down, minimum |
RBI loan-to-value ceilings. Individual lenders may lend less, never more. On a Rs 1 crore Bangalore flat, budget roughly Rs 25 lakh down plus about Rs 6-7 lakh of stamp duty and registration.
What lenders actually check
Four things, in roughly this order of weight.
Income and existing EMIs
The core test. Lenders cap your total EMIs at roughly 50-60% of net monthly income, so an existing car loan directly shrinks what you can borrow for a home.
Credit score
Above 750 gets you the advertised rates. Between 700 and 750 you will usually still be approved, often a little more expensively. Below 650 becomes difficult without a co-applicant.
Age and remaining working years
Tenure is normally capped so the loan ends by retirement, around 60 for salaried and 65-70 for self-employed. A 45-year-old rarely gets a 30-year tenure.
The property itself
The bank runs its own legal and technical check on title, approvals and construction quality. A project on a lender's approved list clears faster; one that is not can be rejected even when your own profile is perfect.
The rate is not the whole cost
Two loans at the same headline rate can cost very different amounts. Ask for all of these in writing before you sign.
Processing fee
A one-time fee on the loan amount, often negotiable and sometimes waived during offers. Ask whether it is refundable if the loan does not go through.
Legal and technical charges
The bank's own valuation and title check on the property. Usually a few thousand rupees, occasionally bundled into the processing fee.
Insurance bundling
Lenders frequently attach a loan protection policy. It is rarely mandatory. Ask explicitly whether the quoted rate depends on buying it.
Rate type and reset
Floating rates are tied to an external benchmark, usually the repo rate, plus a spread. Ask what your spread is and how often the rate resets, since the spread is what actually differs between lenders.
Comparing lenders without damaging your score
This is the part that costs Bangalore buyers the most money, and it is entirely avoidable. Walking into four banks and filling four application forms triggers four hard enquiries on your credit report. Several hard enquiries in a short window read as credit hunger and can pull your score down at exactly the moment you need it highest.
The result is that most buyers do not compare at all. They take whatever the one bank they visited offered, on a loan they will carry for twenty years. On a Rs 1 crore loan, a 0.25% difference in rate is roughly Rs 4 lakh over the full tenure.
A soft check has no effect on your score and can be run against many lenders at once. Only when you choose one lender and formally apply does a single hard enquiry follow. Compare on soft checks, apply once.
Common questions
How much home loan can I get on my salary?expand_more
Most lenders cap all your EMIs together at roughly 50-60% of net monthly income, so a salary of Rs 1.5 lakh a month with no other loans typically supports an EMI near Rs 75,000-90,000. At 8.5% over 20 years that is broadly a Rs 85 lakh to Rs 1 crore loan. Existing car or personal loan EMIs come straight off that ceiling.
What is the maximum loan-to-value in India?expand_more
RBI caps it by loan size: up to 90% for loans up to Rs 30 lakh, 80% for Rs 30-75 lakh, and 75% above Rs 75 lakh. The rest is your down payment, and stamp duty and registration sit on top of that.
Does comparing home loans hurt my credit score?expand_more
Comparing does not, as long as the comparison runs on a soft credit check. A soft check has no impact on your score. A hard enquiry is recorded and several in a short window can pull your score down, which is why applying separately at four banks is a bad idea.
Can I get a home loan for an under-construction flat?expand_more
Yes. The bank disburses in tranches as construction progresses, and until full disbursement you usually pay only interest on the amount drawn, called pre-EMI. RERA registration of the project is normally a condition.
What costs does a home loan not cover?expand_more
Stamp duty and registration, which in Karnataka run to roughly 6-7% of the agreement value, are excluded from the loan amount. So are most GST, maintenance deposits, and interiors. Budget these separately in cash.
Should I take the longest tenure available?expand_more
A longer tenure cuts the monthly EMI but raises total interest sharply. A Rs 1 crore loan at 8.5% costs about Rs 1.77 crore in interest over 30 years versus about Rs 77 lakh over 15, while the EMI falls only from about Rs 98,500 to Rs 76,900. Take the longest tenure you may need, then prepay when you can, as floating-rate home loans carry no prepayment penalty for individuals.
Home loan
See what EMI you're eligible for — without touching your credit score
Personalised offers from 33+ lenders in minutes, on a soft check that leaves your score exactly where it is.
Your CIBIL score stays untouched
Soft check only. One hard check later, at the lender you pick.
33+ lenders, priced to your profile
The rate you're shown is the rate you get.
No paperwork, no spam calls
PAN and Aadhaar to start. Statements pull from netbanking.
Opening your application in a new tab — we'll call you if you need help.
Under-construction, resale and balance transfers. Checked by our lending partner Zoop Money — final rate and sanction are the lender's decision, not ours.
More on home loans
- Home loans in Bangalore
Eligibility, LTV limits and the full cost picture.
- Eligibility calculator
What loan size your income actually supports.
- Documents required
Checklists for salaried, self-employed and NRI.
- EMI calculator
Monthly outgo and total interest over the tenure.
- Stamp duty calculator
Registration cost, which no loan covers.
- Project reviews
Unbiased reviews of Bangalore projects.
PropVision is not a lender and does not charge buyers brokerage. Everything here is general information, not financial advice. Eligibility, interest rates, fees and sanction are decided by the lender on your individual profile. Verify current terms with the bank before you commit.