Home Loans in India by CBRE
                     HOME LOANS 
IN INDIA
A  c o m p r e h e n s i v e  r e p o r t  
b y
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COTNITTLENET:S
1. ELIGIBILITY                                                                                       02
2. TYPES                                                                                                 03
3. FLOATING VS FIXED INTEREST RATES                                         04
4. PRE-EMI                                                                                            05
5. LOAN TO VALUE – INTRO                                                              07
6. LTV – CALCULATION & SLAB                                                         08
7. FOIR – INTRO                                                                                   10
8. FOIR – CALCULATION & SLAB                                                       11
9. TAX BENEFITS                                                                                  12
10. BEST BANKS                                                                                     13
11. INTEREST RATES – 2020                                                                14
12. SOURCES & CREDITS                                                                      15
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ELIGIBILITY
Age of the Applicant 18 to 70 years
Eligible Salary Rs. 25,000 per month and above
Work Experience for Salaried 3 years and above
Business Stability for Self Employed 5 years and above
Minimum CIBIL Score 650
Maximum Loan on Property Value Up to 90%
Maximum EMI as percent of income 65%
Eligibility with Co-applicant Up to 3 earning family members may be 
added to get higher loan eligibility
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TYPES OF HOME LOANS
• Purchase of Residential Property 
• Construction of a House
• Purchase of Land
• House Expansion
• Home Improvement Loans
• Home Conversion Loans
• Balance Transfer Home Loans
• NRI Home Loans
• Bridged Loans
• Stamp Duty Loans
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FIXED INTETRITELSET RATES FLOATING INTEREST RATES
A fixed interest rate is one where the 
Also known as ‘adjustable rate home 
interest amount is fixed and does not loans’, is a home loan where the interest 
vary depending upon market rate keeps changing over the course of 
fluctuations. the fixed loan, due to differences in the 
market rate.
  PROS
  PROS
• Greater predictability
•   Lower interest rates
•  Suitable for short-term loans
•  Can reduce the total interest payable
  CONS
•  No prepayment penalty
• Higher rate of interest
  CONS
• Limited repayment tenure
•  Difficult to budget
• Prepayment penalty
• Highly subjective to market factors
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PRE-EMI ON  HOME LOAN
Pre-EMI is the applicable interest payment to the amount 
that is disbursed over the entire tenure of a home loan. It 
begins when the house is under construction. Once the 
structure is complete pre-EMI payments end, and generous 
EMI payments start.
Equated Monthly Instalment (EMI) is a repayment option on 
a home loan where both interest and principal amount are 
paid to the lender through a fixed monthly payment. 
Nowadays, lenders are offering innovative methods for the 
repayment of the home loan. One of the options is the pre-
EMI plan; wherein, the homebuyers only pay the interest 
amount on the partly disbursed home loan amount as per 
the stage of construction of the property. This plan is only 
applicable for under-construction properties.
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LTV
L o a n  t o  Va l u e  R a ti o
 LTV - INTRO
The loan-to-value (LTV) ratio is based on the size of home 
loan sought and determines the maximum amount that can 
be sanctioned to a property buyer..
The LTV can range from 75 per cent to even 90 per cent of 
the property value and also depends on the borrower’s 
relationship with the lender and the scheme availed.
 A higher LTV implies a greater loan amount and therefore, 
lesser down-payment that you need to arrange out of your 
pocket. However, it also means a higher EMI. A lower LTV 
means that you have to arrange for a larger sum to be paid 
as down-payment.
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LTV CALCULATION & SLABS 
Outstanding Loan LTV Ratio(%) Risk Weight(%)
< 80 35
Upto 30 Lakhs
> 80 & < 90 50
30 – 75 Lakhs < 80 35
Above 75 Lakhs < 75 50
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FOIR
F i xe d  O b l i ga ti o n  t o  I n c o m e  R a ti o
FOIR - INTRO
• Fixed Obligations to Income Ratio (FOIR) is the parameter used by banks 
and other financial organisations to determine the eligibility for a loan of 
an individual. 
• The FOIR of a person is derived by taking into account all the fixed 
monthly obligations that he or she should meet without including the 
statutory deductions such as Provident Fund, Investment Deductions, or 
Professional Tax. 
• While additional expenses such as rent can also be considered as fixed 
obligation depending on the level of income, the FOIR reflects the 
disposable income of a candidate that can be used to pay off his or her 
debts - existing and new. Therefore, the loan eligibility of an individual 
highly depends on his or her FOIR.
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FOIR - CALCULATION & 
SLABS
The formula for calculating the FOIR:
          FOIR = (All Existing Obligations/Net Monthly Salary) * 100
FOIR SLABS : 
Gross Salary FOIR %
Rs.20,000 50%
Rs.30,000 55%
Rs.40,000 + 59-60%
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TAX BENEFITS ON 
HOME LOAN
Maximum Deductible 
Income Tax Act
Amount
Rs.2 lakh (for self-
occupied house) 
Section 24 No limit (for let-out 
property)
Rs.1.5 lakh from 
Principal (including 
Section 80C
stamp duty and 
registration fee)
Rs.50,000 Additional 
Section 80EE interest (for first-time 
buyers)
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BEST BANKS SURVEY
BEST BANKS FOR 
HOME LOANS
10%
1. SBI 
2%
2%
2. HDFC Bank 3%
40%
3. LIC Housing Finance
4. AXIS Bank 18%
5.  ICICI Bank
6. IDBI Bank 4%
4%
7. Bank of India 17%
8. PNB Housing
9. Others
SBI HDFC AXIS ICICI LIC IDBI BOI PNB OTHERS
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HOME LOAN INTEREST RATES - 2020
Interest 
Banks Processing Fee
Rate
State Bank of India 7.15% - 7.55% p.a. Rs.2,000 – Rs.10,000 
HDFC Ltd. 8.00% - 8.30% p.a Up to 0.50%
ICICI Bank 8.60% - 9.40% p.a. 0.50% to 1%
Axis Bank 8.55% - 9.40% p.a Up to 1%
PNB Housing Finance Ltd. 8.95%- 9.95% p.a. Up to 0.25% (max. Rs.15,000) + GST
LIC Housing Finance Limited 8.40% - 8.50% p.a. Rs. 10,000- Rs.15,000 
(+Service Tax)
United Bank of India 8.00%- 8.15% p.a. Rs.1000/ or Above
Bank of India 8.00% - 8.30% p.a. 0.25% 
(Max. Rs.20,000)
IDBI Bank 8.25% - 8.80% p.a. 0.50%
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TITLE:
Sources
• Moneycontrol.com
• Bankbazaar.com
• Financialexpress.com
• Hdfc.com
• Investopedia.com
• Moneytap.com
• Goodreturns.in
• Makaan.com
• Housing.com
• Rbi.org.in Created by 
• Andrewprokos.com Rahil Mohamed
CBRE – Residential
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THANK YOU
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