Can I Get a 90% Home Loan in India? A Complete Beginner’s Guide

Owning a home is one of the most common dreams for Indian families. But with property prices rising faster than salaries and savings, arranging the down payment often feels like the biggest roadblock. That’s why the idea of a 90 percent home loan is so appealing. If a bank is willing to fund almost the entire cost of your house, you only need to manage 10% upfront, plus registration and stamp duty. For many first-time buyers, this is the difference between waiting years and buying today.

But is it really that simple? Can every buyer get 90% financing? Do all banks offer it? What if the bank’s valuation is different from the seller’s asking price? And beyond the loan approval, should you even stretch to the maximum possible borrowing? These questions matter because a home loan isn’t just about eligibility — it’s a long-term financial commitment that shapes your lifestyle for decades.

Table of Contents

• What Does a 90% Home Loan Really Mean?
• When Is a 90% Home Loan Allowed in India?
• Home Loan Requirements for 90% Funding
• How Much House Loan Can I Get?
• How Much Home Loan Should I Take?
• Which Bank Gives a 90 Percent Home Loan in India?
• How Much Tax Can Be Saved on a Home Loan?
• Costs Beyond the Down Payment
• Real-World Examples of 90% Loans

What Does a 90% Home Loan Really Mean?

When people talk about a 90 percent home loan, they are referring to the Loan-to-Value ratio, or LTV. This is the proportion of a property’s value that the bank agrees to finance. The rest has to come from your pocket as the down payment.

For example, suppose you are buying a flat priced at ₹30 lakh. If the lender allows 90% LTV, your maximum home loan amount will be ₹27 lakh. You will need to arrange the remaining ₹3 lakh yourself, plus additional costs such as registration and stamp duty.

It’s important to note that banks don’t always use the price you agreed upon with the seller. Instead, they apply the LTV to whichever is lower: the agreement price or the valuation done by the bank’s empaneled valuer. If your seller asks ₹32 lakh but the valuer assesses it at ₹30 lakh, your loan will be capped at ₹27 lakh (90% of 30). You will then have to bring in the remaining ₹5 lakh.

This sometimes frustrates buyers, but the reason is risk management. Banks want to ensure they don’t lend more than what the property is objectively worth. The margin you contribute not only protects the bank but also ensures that you are financially committed to the property.

When Is a 90% Home Loan Allowed in India?

Not every buyer or property qualifies for 90% financing. In India, the Reserve Bank of India (RBI) sets broad rules on LTV depending on the size of the loan. Banks and housing finance companies follow these norms, though they can apply stricter conditions internally.

• For properties up to ₹30 lakh: Banks may fund up to 90 percent home loan if the borrower’s profile is strong.
• For properties between ₹30 lakh and ₹75 lakh: LTV is usually capped at 80%.
• For properties above ₹75 lakh: LTV is often capped at 75%.

This structure exists because smaller-ticket homes typically belong to the affordable housing segment. Many of these buyers are first-time homeowners with limited savings. Allowing them to borrow up to 90% of the cost helps them enter the market sooner. On the other hand, buyers of higher-value homes are expected to have stronger finances and are therefore asked to contribute more upfront.

In practice, this means that a salaried person buying a ₹25 lakh flat in a Tier 2 city could realistically get a 90% loan if all other conditions are met. But someone buying a ₹1 crore apartment in a metro will almost certainly be restricted to 75% LTV, regardless of how high their salary is.

This is why the answer to “how much percent home loan can I get” depends heavily on the ticket size of your property.

Suggested read: Planning a ₹50 Lakh Home Loan

Home Loan Requirements for 90% Funding

Getting approval for a 90 percent home loan is possible, but the bank applies strict filters because the risk is higher for them. Let’s break down the home loan requirements in detail.

1. Credit Score

The first and most important check is your credit score. This three-digit number, issued by agencies like CIBIL or Equifax, reflects your repayment history. A score above 750 signals that you’ve managed past loans responsibly, making you a safer bet for banks. If your score is between 700 and 749, you may still qualify, but the bank might impose a slightly higher rate of interest or reduce the LTV to 80%. If your score is below 700, your chances of securing 90% financing fall drastically.

Improving your score before applying makes a huge difference. Paying off credit card dues, avoiding new loans, and correcting any errors in your report can add 50–100 points in a few months.

2. Income and Stability

Banks want to ensure that you can handle the EMI without stress. For salaried employees, this means at least two years of continuous employment, preferably with a stable employer. For self-employed borrowers, lenders usually expect three years of consistent profits supported by ITRs and audited statements.

They also calculate something called FOIR (Fixed Obligations to Income Ratio). This shows what portion of your monthly income is already tied up in EMIs. If FOIR exceeds 50%, lenders hesitate to sanction 90% LTV.

3. Property Documents

A loan is not only about the borrower – the property itself is collateral. Banks insist on clear titles, approved building plans, and the absence of litigation. If the property is under construction, they prefer projects with APF (Approved Project Finance) status. This means the bank has already vetted the project and can lend faster.

4. Documentation

The paperwork is straightforward but must be complete: KYC documents like PAN and Aadhaar, income proofs like salary slips or ITRs, bank statements, and all property-related documents. Missing or inconsistent papers are among the biggest reasons for delays.

Check eligibility: Home Loan Eligibility Check

How Much House Loan Can I Get?

One of the most common questions is: “How much house loan can I get?” This depends on two things — your income-based eligibility and the LTV cap. The bank will approve whichever is lower.

Let’s understand this with an example. Suppose you earn ₹80,000 per month. Banks usually allow EMIs up to 40–45% of your net monthly income. At 45%, your maximum EMI should be around ₹36,000.

Now, let’s convert EMI into a loan amount. At an interest rate of 9% for 20 years, every ₹1 lakh of loan results in an EMI of roughly ₹900. So, with an EMI capacity of ₹36,000, your loan eligibility is about ₹40 lakh.

But here comes the LTV rule. If the property is valued at ₹35 lakh, your maximum home loan amount at 90% is only ₹31.5 lakh. Even though your salary could justify a bigger loan, the bank will only lend ₹31.5 lakh. You will have to arrange the rest.

This is why buyers sometimes feel banks approved less than expected. Both income and property play a role, and the lower figure decides the outcome.

How Much Home Loan Should I Take?

Another important question is not just about eligibility but comfort: “How much home loan should I take?” Just because a bank is willing to sanction 90% does not mean you should borrow the maximum.

Imagine your salary is ₹1 lakh, and the bank says you can afford an EMI of ₹45,000. On paper, it fits. But if your household expenses are ₹40,000 and you also want to save ₹20,000 monthly, the EMI will leave you stretched thin. In such cases, taking a smaller loan and paying a bigger down payment may be wiser.

As a thumb rule, keeping your EMI within 25–35% of your income leaves breathing space for other goals. Retirement savings, children’s education, medical emergencies, and lifestyle costs don’t pause just because you took a home loan. Borrowing less than your eligibility might feel conservative, but it often prevents financial stress.

Which Bank Gives a 90 Percent Home Loan in India?

A very practical question people ask is: “Which bank gives 90 percent home loan in India?” The answer is that many banks do, but only within the RBI’s cap of ₹30 lakh.

• Public sector banks like SBI, Bank of Baroda, and Punjab National Bank routinely sanction 90% loans for affordable housing, especially under government schemes.
• Private banks like HDFC, ICICI, and Axis also provide 90% for small-ticket loans to salaried professionals with strong credit scores.
• Housing finance companies such as LIC Housing Finance or PNB Housing Finance can be more flexible with self-employed borrowers.

The catch is that while multiple institutions offer 90% LTV, approval still depends on your profile and the property. So, it’s best to approach your salary account bank first (for relationship benefits) and then compare at least two others on interest rates, processing fees, and customer service.

How Much Tax Can Be Saved on a Home Loan?

Beyond ownership, a home loan also brings tax savings. Buyers often ask, “How much tax can be saved on home loan?” Let’s break it down.

1. Principal repayment (Section 80C): You can claim up to ₹1.5 lakh per year. This is within the overall 80C limit that includes PF, PPF, and insurance.
2. Interest repayment (Section 24b): For self-occupied homes, you can claim up to ₹2 lakh per year. If the property is rented out, the limit is higher, though set-off rules apply.
3. Joint loans: If the house is jointly owned and both co-borrowers are paying EMIs, each can claim deductions separately, effectively doubling the benefit.
4. Pre-construction interest: Interest paid before possession can be claimed in five equal installments after you get possession.

Together, these benefits reduce your taxable income by lakhs every year, effectively lowering your net cost of borrowing.

Costs Beyond the Down Payment

Many buyers assume that arranging the 10% contribution is enough. But even with a 90 percent home loan, several other costs come up.

1. Stamp duty and registration: These vary by state and often range from 5–8% of the property value. They are over and above your down payment.
2. GST: Applicable on under-construction properties.
3. Processing fees: Banks may charge up to 0.5–1% of the loan.
4. Legal and valuation charges: Sometimes billed separately.
5. Furnishing and interiors: Moving into a bare flat often requires significant spending.
6. Society deposits and maintenance: Ready-to-move flats usually have upfront charges for society membership or sinking funds.

If you plan only for the 10% down payment, you may find yourself short when these expenses appear. A safe practice is to keep an extra buffer of at least 10–12% of the property cost.

Real-World Examples of 90% Loans

Let’s look at some real-world scenarios.

Case 1: First-time salaried buyer

Ramesh earns ₹70,000 monthly and wants to buy a flat worth ₹28 lakh. His EMI capacity at 40% FOIR is ₹28,000, which maps to about a ₹31 lakh loan. Since the property is within the ₹30 lakh band, the bank offers 90% = ₹25.2 lakh. Ramesh arranges the rest and comfortably buys his first home.

Case 2: Self-employed professional

Anita runs a small business with an average monthly income of ₹1.5 lakh. She wants a ₹50 lakh flat. Her EMI capacity is ₹60,000, which maps to about a ₹68 lakh loan. But the property is above ₹30 lakh, so LTV is capped at 80% = ₹40 lakh. Anita must contribute ₹10 lakh upfront.

Case 3: High-ticket buyer

Sanjay earns ₹3 lakh monthly and wants a ₹1 crore property. His EMI capacity is ₹1.2 lakh, mapping to ₹1.4 crore loan eligibility. But LTV is capped at 75%, so the maximum loan is ₹75 lakh. He must bring in ₹25 lakh.

These examples show that income and valuation are both important, but LTV rules ultimately set the ceiling.

Checklist Before You Apply

Finally, here’s a practical flow:

1. Work out your comfort EMI – not just bank eligibility.
2. Confirm property valuation with the bank.
3. Keep all documents updated.
4. Compare interest rates, fees, and service.
5. Budget for stamp duty and extras.
6. Keep 6–9 months of EMI as a cushion.

Final Word

A 90 percent home loan can make homeownership possible much sooner, especially for affordable housing buyers. But it comes with conditions — mainly that your property value must fall within the ₹30 lakh band, and your profile must satisfy all home loan requirements.

The real key is not only to ask “how much percent home loan can I get” but also “how much home loan should I take.” Stretching to the maximum can lock you into high EMIs for decades. A balanced approach, with careful planning of tax benefits, down payment, and future goals, ensures that your home loan becomes a stepping stone to financial stability, not a burden.

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