Home Loan Checklist for First-Time Buyers in Maharashtra

The most a bank can lend

RBI caps a home loan at 90% of the property value for loans up to Rs 30 lakh, 80% for loans above Rs 30 lakh up to Rs 75 lakh, and 75% above Rs 75 lakh, according to its October 2015 circular as reported at the time. The bank also values the property itself and lends against the lower of its valuation and your price.

On a Rs 50 lakh flat the most you can borrow is Rs 40 lakh, so you bring at least Rs 10 lakh. That is before the costs a loan does not cover.

The costs on top of the down payment

Stamp duty is due when the agreement is registered, and banks rarely fund it. Inside Nashik Municipal Corporation limits it is 5% under the Stamp Act plus a 1% municipal surcharge, as reported from the corporation's receipts, and possibly a 1% metro surcharge not confirmed for Nashik. Budget 7% and confirm the rate with the sub-registrar. Registration is about 1%, capped at Rs 30,000.

On an under-construction flat add GST: 5% of the price, or 1% for affordable housing, according to the GST Council's real estate FAQ.

Fees to ask about in writing

Processing fees usually run 0.25% to 1% of the loan, and most lenders cap them in rupees, going by the large lenders' published schedules. Those schedules change, and many lenders waive the fee in promotions, so ask each one for the fee in writing. Ask also about valuation and legal fees, and about any insurance the bank wants with the loan.

A bank may require insurance on the property it lends against. Ask whether you may buy it from an insurer of your choice, and compare the quote it offers with one from outside.

Prepayment charges on a floating-rate loan are banned

Under RBI's Pre-payment Charges on Loans Directions 2025, effective 1 January 2026, lenders cannot charge a prepayment or foreclosure fee on a floating-rate loan taken by an individual for a non-business purpose, as KS&K and others have summarised them. A fixed-rate loan may carry a charge, which must be disclosed in the Key Facts Statement.

So a first-time buyer on a floating rate can pay down the loan early, or move it to another lender, without a penalty. Check the sanction letter on an older loan.

Documents to have ready

Identity and address proof, PAN, salary slips and your employer's TDS certificate, or income tax returns if you are self-employed, and six months of bank statements. For the property, the bank will want the agreement for sale, the title chain, the approved plan and, for a new project, its MahaRERA registration. Search that on maharera.maharashtra.gov.in yourself before the bank does.

Disbursement on a new flat

On an under-construction flat the bank pays the builder in stages as construction progresses, and you pay interest only on the amount released. Make sure the bank's stages match the payment schedule in your agreement for sale. The promoter cannot ask for more than 10% of the cost before the agreement is registered, so no loan money should go out before then either.

Your chartered accountant can tell you which deductions apply to your loan under the tax regime you file in.