Can You Get a 90% Home Loan? RBI Guidelines and Eligibility Explained

When you start planning to buy your dream home, one of the first questions is: how much of the property cost will the lender cover? Many first-time buyers hope for 90% financing, as it reduces the immediate burden of arranging funds. But the reality is shaped by RBI regulations, your home loan eligibility, and how financial institutions assess risk.

This article helps you understand when 90% financing is possible, what the maximum home loan amount depends on, and how you can improve your chances of securing it.

RBI Guidelines on Maximum Loan-to-Value

The Reserve Bank of India (RBI) sets clear norms on how much lenders can finance, depending on property value:

So yes, you can get a 90% home loan, but only if the property value is within ₹30 lakh. This makes it most relevant in the affordable housing segment and for government-backed schemes such as the Pradhan Mantri Awas Yojana – Urban (PMAY-U).

For higher-value homes, the maximum home loan amount is reduced in percentage terms, as shown in the table above.

Why Affordable Housing Often Gets 90% Funding

For homes priced within ₹30 lakh, lenders and NBFCs are more flexible because:

• It falls within the RBI’s 90% home loan eligibility slab.
• Affordable housing is supported by government initiatives like PMAY, making it lower risk for lenders.
• Borrowers in this segment usually benefit from festive home loan offers and lower entry barriers.

This makes 90% financing more accessible for middle-class and first-time homebuyers. But it doesn’t mean all lenders directly offer a 90% home loan. There are several other factors to play, as well.

Factors that influence your Home Loan Eligibility

Beyond RBI rules, lenders assess several personal and financial factors before deciding the loan amount:

1. Credit Score

A strong credit score (usually above 700) improves your maximum loan amount for a home loan. It shows repayment discipline and lowers risk for lenders.

Also Read: Importance of Credit Score When Applying for a Loan

2. Income Level and Stability

Higher income and job stability increase your loan eligibility. Self-employed individuals may need to show steady business income for the last 2–3 years.

3. Existing Financial Obligations

If you already have ongoing EMIs, it may reduce the maximum home loan amount sanctioned. Lenders typically check your debt-to-income (DTI) ratio to ensure you can repay them comfortably.

4. Loan Tenure

Choosing a longer tenure can help you qualify for a higher loan amount, though it increases the overall interest outgo.

5. Applicant Age

Younger applicants have longer earned years ahead, which allows lenders to sanction higher amounts compared to someone nearing retirement.

Tips to maximise your Home Loan Amount

If you want to push closer to the maximum home loan amount possible, here are a few practical steps:

• Minimum Years of Service: Pay existing EMIs and bills on time. Avoid unnecessary debt.
• Consider Joint Applications: Applying with a co-applicant (like your spouse) can boost your eligibility by clubbing incomes.
• Opt for a Longer Tenure: Extending the repayment period reduces EMIs, increasing the sanctioned amount.
• Reduce Other Liabilities: Clear personal loans or credit card dues before applying.
• Show Additional Income Sources: Rental, freelance, or side business income can strengthen your application.
• Choose the Right Lender: Different lenders have varying policies on eligibility and loan limits. NBFCs like IIFL Home Loans offer flexible options that can help you access higher loan amounts with ease.

In Summation

Maximizing your home loan amount isn’t only about pushing for the highest possible percentage. It’s about carefully balancing your eligibility, repayment capacity, and long-term financial comfort.

At the same time, choosing the right lender matters just as much. IIFL Home Loans not only offers flexible eligibility norms, simplified documentation, and competitive rates but also focuses on making homeownership more affordable for aspiring buyers.