Repayment
A fixed instalment over a long tenure, commonly ten to thirty years. Repayment is scheduled, not revolving.
Home & property · Loan guidance
Home loan, explained.
The largest, longest borrowing most households ever take on. The property and the repayment plan matter equally.
What it is
The instrument, in plain terms.
A secured loan to buy, construct, extend or improve a home, repaid over a long tenure with the property held as security until the loan is cleared.
It can suit
- Buyers and owners who can evidence stable income and a realistic repayment plan.
- Those with a documented property chain: title, approvals and a registered agreement.
- Salaried and self-employed borrowers whose income can be explained, not just earned.
It may not suit
- Income that cannot be evidenced on paper, however genuine it may be.
- Properties with unresolved title, occupancy or approval issues.
The lender’s view
How a lender reads this.
Repayment capacity
The instalment is tested against income, existing obligations and the share of income already committed to EMIs.
Income stability
Salaried applicants are read from payslips and bank credits; self-employed applicants from returns, banking and business vintage.
Credit behaviour
A credit-bureau report shows how past borrowing was serviced. Missed payments stay visible for years.
Property and legal comfort
A technical and legal assessment covers valuation, title, approvals and whether the property can be enforced as security.
Lenders decide on their own assessment. Our work is to make your case complete, consistent and genuinely ready to be read.
Our work
What we prepare with you.
A repayment plan built on net income, with existing obligations disclosed upfront.
A clean, reconciled income story covering salary, business, rent or other sources.
Property papers in order: title chain, approvals, agreement and valuation access.
A funded plan for the margin the lender will not finance, plus registration and stamp costs.
Preparation
What a lender usually asks for.
- Identity and address proof for every applicant.
- Income proof: payslips, Form 16 and bank statements if salaried; returns and financials if self-employed.
- Property papers: title chain, approvals, the agreement and recent tax receipts.
- A valuation report and legal opinion, usually arranged by the lender.
- Statements for any loan being repaid or continued.
- A repayment mandate — auto-debit instruction or post-dated cheques.
Mechanics
How it is usually structured.
The shape a lender will typically put around this facility.
Security
A first charge on the property, created by mortgage and released only when the loan is fully repaid.
Disbursement
Released in stages against the purchase or construction, never as a lump sum without a purpose.
Common mistakes
Where borrowers go wrong.
None of these are exotic. They are the ordinary errors that turn a workable requirement into a difficult application.
Borrowing to the maximum sanctioned
Eligibility is not affordability. A lender's ceiling can still leave a household stretched.
Applying everywhere at once
Multiple simultaneous enquiries can read as pressure on a credit report.
Leaving out existing loans
Undisclosed obligations surface during assessment and damage credibility at the worst moment.
The full cost
What it costs, beyond the rate.
- Processing fee
- A percentage of the loan, plus tax, usually deducted at sanction.
- Legal and valuation
- Third-party charges for checking title and valuing the property.
- Insurance
- Property cover, and sometimes borrower cover, which may be a condition of the loan.
- Prepayment and foreclosure
- Charges on repaying early or transferring the loan, which vary by lender and rate type.
Language
Terms worth knowing.
- EMI
- Equated monthly instalment — the fixed amount paid each month across the loan's tenure.
- LTV
- Loan-to-value — the loan as a share of the property's assessed value. The balance is the borrower's margin.
- FOIR
- Fixed-obligation-to-income ratio — the share of monthly income already committed to repayments.
Repayment estimate
What the instalments might look like.
Adjust the amount, rate and tenure for an indicative instalment and total cost. It is a planning aid, not a quote.
Tenure
Estimated monthly instalment
- Total interest
- ₹37,89,715
- Total payable
- ₹72,89,715
- Tenure
- 20 yr
- Principal₹35,00,000
- Interest₹37,89,715
Year-by-year repayment schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | ₹69,658 | ₹2,94,828 | ₹34,30,342 |
| 2 | ₹75,815 | ₹2,88,671 | ₹33,54,527 |
| 3 | ₹82,517 | ₹2,81,969 | ₹32,72,010 |
| 4 | ₹89,810 | ₹2,74,676 | ₹31,82,200 |
| 5 | ₹97,749 | ₹2,66,737 | ₹30,84,451 |
| 6 | ₹1,06,389 | ₹2,58,097 | ₹29,78,063 |
| 7 | ₹1,15,793 | ₹2,48,693 | ₹28,62,270 |
| 8 | ₹1,26,028 | ₹2,38,458 | ₹27,36,243 |
| 9 | ₹1,37,167 | ₹2,27,319 | ₹25,99,075 |
| 10 | ₹1,49,292 | ₹2,15,194 | ₹24,49,784 |
| 11 | ₹1,62,488 | ₹2,01,998 | ₹22,87,296 |
| 12 | ₹1,76,850 | ₹1,87,636 | ₹21,10,446 |
| 13 | ₹1,92,482 | ₹1,72,004 | ₹19,17,964 |
| 14 | ₹2,09,496 | ₹1,54,990 | ₹17,08,469 |
| 15 | ₹2,28,013 | ₹1,36,473 | ₹14,80,456 |
| 16 | ₹2,48,167 | ₹1,16,318 | ₹12,32,288 |
| 17 | ₹2,70,103 | ₹94,383 | ₹9,62,185 |
| 18 | ₹2,93,978 | ₹70,508 | ₹6,68,207 |
| 19 | ₹3,19,963 | ₹44,523 | ₹3,48,245 |
| 20 | ₹3,48,245 | ₹16,241 | ₹0 |
Indicative only. Not specific to your circumstances. It excludes processing fees, insurance, taxes and any lender-specific charges, and it is not an offer of credit.
On rates
Why we don’t publish a single rate.
Pricing is set by each lender, not by us. Two borrowers approaching the same lender on the same day can be offered different rates, because the number reflects both the facility and the person behind it.
What moves the rate you are offered:
- Your credit record and how past borrowing has been serviced.
- The security offered, and how readily it could be realised.
- The tenure and the structure of the facility.
- Your income or business profile, and how well it is documented.
- The lender’s own cost of funds and internal policy.
- Fees, insurance and margin that belong in the all-in cost, not the headline.
A single advertised rate would misrepresent all of that. What we do instead is help you compare the whole cost, and understand what is actually negotiable in your case.
Questions borrowers ask
How much of the property will the lender fund?
- A share of the assessed value — the loan-to-value. You fund the rest as margin, plus registration and stamp duty.
Can I prepay without a penalty?
- Often yes, but it depends on the rate type and the lender. Get it confirmed in writing before you sign.
Does a joint loan help?
- It often does. A second earner can raise the amount a lender will consider, and the repayment is shared.
Adjacent borrowing
Related options.
Borrowers considering home loan often weigh these alongside it.
Balance transfer & top-up
Moving an existing loan to another lender, or borrowing further against equity you have already built.
↗Loan against property
Borrowing against property you already own, for purposes that may have nothing to do with the property itself.
↗Personal loan
Unsecured borrowing — no collateral, decided largely on income and credit history, and priced for that risk.
↗Begin here
Discuss this requirement.
Tell us the broad shape of what you need — amount, purpose and timeline. Nothing confidential at this stage.
The Loan CA prepares and advises; it does not lend and cannot promise an approval. Every credit decision rests with the lender, subject to their assessment, documentation and applicable terms. The Loan CA is not licensed, registered or regulated by the Reserve Bank of India, and is not approved, endorsed by, or affiliated with the RBI or the Institute of Chartered Accountants of India (ICAI). Full disclosures →