Legal & HRERA
Complete Home Loan Guide for First-Time Buyers
From eligibility to disbursement to tax deduction — everything a first-time home-loan borrower must know.
Eligibility (thumb-rules)
Loan amount = 60x monthly net salary approx. LTV up to 80% for loans <₹75 L; 75% for higher. CIBIL > 750 for best rates.
Interest rate structures
External Benchmark Linked (EBLR/Repo) is the default. Fixed-rate options exist but are 100–150 bps costlier. Insist on repo-linked with the lowest spread.
Documents
PAN, Aadhaar, 6 months bank statement, 3 months salary slip, Form 16 for last 2 years, employment letter, property papers, builder demand letter.
Subvention schemes explained
In a 10:80:10 or 20:80 subvention, the builder pays your pre-EMI until possession. Read the exit clause — most schemes end abruptly if the possession is delayed.
Tax benefits
Section 24(b): interest deduction up to ₹2 L (self-occupied) or unlimited (let-out). Section 80C: principal repayment up to ₹1.5 L. Section 80EEA: additional ₹1.5 L for affordable housing (subject to conditions).
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