Home loans in India: current rates, structures and costs

The Reserve Bank of India raised the policy repo rate from 5.25% to 5.50% on 7 October 2026. A floating home loan usually combines an external or internal benchmark with the lender's spread; the borrower's reset date determines when a benchmark change reaches the loan.

Rate-check caution: lender and comparison pages can use different dates, schemes and eligibility conditions. The table deliberately avoids calling the lowest advertised number the rate you will receive. Ask each lender for a written, profile-specific offer on the same day.

For a ₹50 lakh loan over 20 years, the table below keeps the rate unchanged for the full term and excludes fees. It illustrates why a one-percentage-point difference matters.

A co-applicant may affect eligibility and has repayment obligations. Ownership, co-borrowing and tax treatment are separate questions; obtain advice for your circumstances rather than assuming a benefit.

• Processing or login fee: often a fixed amount or percentage, with GST where applicable. Ask whether it is refundable if the loan is declined.
• Legal, valuation and technical checks: confirm whether these are included or billed separately.
• Documentation and administrative charges: request the complete schedule, including charges for statements, copies or changes.
• Insurance: separate property cover from loan-protection cover and ask whether either is optional, its premium and how it is financed.
• Property purchase costs: stamp duty, registration, interiors and other acquisition costs are not the same as lender fees and may not be financed.

For example, a 0.5% processing fee on ₹50 lakh is ₹25,000; 18% GST on that fee adds ₹4,500, taking the total to ₹29,500. This is an illustration, not a standard fee charged by every lender.

RBI's 2025 prepayment directions apply to loans sanctioned or renewed from 1 January 2026 and prohibit prepayment charges on covered floating-rate loans to individuals for non-business purposes. Fixed-rate and business-purpose loans need separate checks.

Lenders assess income, existing EMIs, credit history, age, employment or business stability, the property and the loan-to-value ratio. Two incomes do not guarantee approval. A higher down payment can reduce the loan amount and interest, but should be balanced against purchase costs and accessible savings.

Obtain a sanction based on your real documents before committing to a purchase timeline. An online eligibility estimate is not the same as final sanction and disbursal.

1. What are my benchmark, spread, effective rate and next reset date?
2. Which credit or loan-to-value conditions must I meet to keep this rate?
3. What is the complete fee total including GST and third-party checks?
4. When rates change, will you alter my EMI, tenure or both?
5. What are the prepayment, foreclosure and balance-transfer conditions?
6. Which insurance or add-on products are optional?
7. For under construction, when does full EMI begin and what happens if disbursement is delayed?

Read the Key Facts Statement and sanction letter before paying a non-refundable amount. Penthauz Realty is not a lender and does not provide personalised financial advice.