Can i get a 90% home loan in India? The answer is yes, but only under specific Reserve Bank of India (RBI) mandates that cap the property value at ₹30 lakh. In the 2026 financial market, lenders have become more precise with their risk assessments. While the dream of owning a home is closer for many, structuring business assets for long-term growth often requires a clear understanding of how home equity and loan-to-value (LTV) ratios function.
Whether you are a first-time buyer or a manufacturer looking to utilize the loan against property for warehouse expansion in North 24 Parganas, knowing the ceiling of bank funding is the first step. This guide provides the clinical details on LTV slabs, income rules, and bank criteria for 2026.
1. The Core Rule: RBI LTV Slabs for 2026
The Loan-to-Value (LTV) ratio is the most important metric in any mortgage. It determines how much money the bank provides and how much you must pay from your pocket as a down payment. The RBI has set strict limits to prevent over-leveraging in the real estate sector.
| Property Value | Maximum LTV Ratio | Your Minimum Contribution |
| Up to ₹30 Lakh | 90% | 10% |
| ₹30 Lakh to ₹75 Lakh | 80% | 20% |
| Above ₹75 Lakh | 75% | 25% |
For properties valued at ₹30 lakh or less, the answer to “can i get a 90% home loan” is a statutory yes. However, for a high-value commercial property vs residential purchase worth ₹1 crore, the bank will only provide ₹75 lakh, requiring you to arrange ₹25 lakh independently.
2. Calculating Your Eligibility: The LTV Formula
Lenders do not use the price on your sale deed alone to calculate the loan amount. They use the lower of the market value (assessed by a bank-approved valuer) or the purchase price.
Critical Note on Government Costs
In 2026, Income Tax Department and RBI guidelines clarify that stamp duty, registration fees, and other documentation costs are excluded from the property value when calculating the LTV ratio. The only exception is if the total cost of the house does not exceed ₹10 lakh. In such small-ticket cases, banks can add these costs to the property value to reach the 90% mark.
3. Eligibility Criteria for High LTV Loans
Even if you fit the ₹30 lakh slab, a 90% loan is not a right; it is based on your credit health. Banks in 2026 look for a “Prime” profile before approving the maximum possible funding.
A. The CIBIL Score Threshold
A CIBIL score for business loan or home loan needs to be 750 or above. If your score is lower, the bank might reduce the LTV to 80% or 75% to mitigate risk. You can improve CIBIL score fast by clearing small unsecured business loans before applying.
B. Income Stability and FOIR
Banks calculate your Fixed Obligation to Income Ratio (FOIR). Generally, your total monthly EMIs, including the new home loan, should not exceed 40-50% of your net monthly income. If you are a West Bengal entrepreneur, they will check your GSTR-3B filings to verify your business turnover.
C. Technical and Legal Health
Properties with a clear KMC mutation and updated tax receipts are favored. If the house is on Thika tenancy land in Howrah, you will need a specific NOC from the Thika Controller to even qualify for a secured business loan or home loan.
4. 2026 Strategic Changes: Interest Rates and Prepayment
The financial year 2026 has brought two major shifts for Indian borrowers:
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Repo Rate Impact: Following recent RBI monetary policy meetings, the repo rate has stabilized, leading to home loan interest rates hovering around 8% to 9%.
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Prepayment Freedom: From January 1, 2026, the RBI has strictly prohibited foreclosure and prepayment charges on all floating-rate loans for individuals. This allows you to pay off your debt early using emergency funds in Kolkata without any penalty.
5. Improving Your Chances for a 90% Loan
If you are struggling to meet the bank’s criteria for a high LTV loan, consider these steps:
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Add a Co-applicant: Adding a spouse or parent with a steady income increases the total repayment capacity.
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Show Rental Income: If you own other assets like industrial sheds in Sodepur, provide the Form 16A to prove secondary income.
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Clear Small Debts: Close credit card dues and small business loans to improve your debt-to-income ratio.
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Audit Your Records: Ensure your GST loan and Udyam registration data match your bank statements.
6. Home Loan vs. Loan Against Property (LAP)
Many owners of existing property ask if they can get 90% on a LAP. The answer is no. Loan against property is for “Asset Monetization.” Since the risk is higher (it is not a primary purchase), banks usually limit the Maximum loan amount for LAP to 60-70% of the property value.
| Feature | Home Loan (Purchase) | Loan Against Property (LAP) |
| Max LTV | Up to 90% | Up to 75% |
| Interest Rate | 8.25% – 9.5% | 9.5% – 12% |
| Max Tenure | 30 Years | 15 Years |
| Tax Benefit | Section 24(b) & 80C | Section 37(1) |
Pro-Tip: If you need funds for factory expansion, a secured business loan via LAP is better because the interest is a 100% tax-deductible expense.
7. The “NOC Factor” and Documentation
To secure any mortgage loan, you need a No Outstanding Certificate (NOC) from local bodies and the housing society. This ensures the property is free from tax liens and legal disputes.
Mandatory Documents Checklist for 2026:
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Identity: Aadhaar and PAN.
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Income: 6 months of bank statements and 2 years of GSTR-3B filings.
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Property: Sale deed, KMC mutation, and latest property tax receipts.
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Technical: Sanctioned building plan and boundary wall demarcation report.
Frequently Asked Questions (FAQs)
1. Can i get a 90% home loan for a flat worth ₹50 lakh?
No. According to RBI guidelines, properties valued between ₹30 lakh and ₹75 lakh have an LTV cap of 80%. You will need to provide a 20% down payment.
2. Is stamp duty included in the 90% loan amount?
Generally, no. For most properties, stamp duty and registration are extra. They are only included if the property value is below ₹10 lakh.
3. Can a self-employed person get 90% funding?
Yes, but the application process for LAP or home loans for self-employed individuals is stricter. Banks will verify your GSTR-3B interest calculations to ensure business health.
4. What is the impact of a low CIBIL score on LTV?
A low score indicates high risk. Even if the property is worth ₹25 lakh, the bank may only offer 75-80% instead of the 90% you want.
5. Can I get a 90% loan for plot purchase?
No. Loans for land or plots usually have an LTV cap of 50% to 60%. The 90% rule is strictly for constructed residential units.
6. Do NBFCs offer higher LTV than banks?
Sometimes, NBFCs are more flexible with documentation, but they still have to follow the RBI ceiling of 90% for affordable housing.
7. What is the benefit of the PMAY scheme in 2026?
The Pradhan Mantri Awas Yojana (PMAY) provides an interest subsidy, which effectively reduces your EMI, though the LTV limits remain the same.
8. How long does the approval process take?
With automating daily operations in banking, a home loan can be sanctioned in 5 to 7 working days if all documents like form 16A are ready.
9. Can I use a home loan to fund my business?
Technically, no. Home loans are for residence only. For business use, you should refinance your house using a LAP.
10. Where can I find a list of approved lenders?
You can view our sitemap for a complete list of top 5 banks and NBFCs and their specific criteria.
Final Summary: Planning Your Purchase
The answer to “can i get a 90% home loan” is a powerful yes for the affordable housing segment. By focusing on properties under ₹30 lakh and maintaining a clean CIBIL score, you can enter homeownership with a minimal 10% down payment. For larger properties, focus on optimizing interest costs and preparing your mortgage loan documentation well in advance.
Are you ready to check your eligibility for a 90% home loan?
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