Can We Get 100 Percent Home Loan?

Do banks give 100 percent home loans?

Which bank gives 100 percent home loan?

Hello Kapil. I saw you asking can I get 100 percent home loan. Well, it is not possible for any financial institution to give you a loan amount equal to the home value. RBI guidelines allow banks and NBFCs to grant up to 90 percent  of home loans. The main criterion that sets the percentage is the property value. Financial institutions across India give 75 to 90 percent as loans. 

Can I Get a 100 Percent Home Loan?

The maximum funding from banks goes up to 90 percent, which is for a property value below Rs. 30 lakhs. The percentage lowers as the property value increases. Between Rs. 30 to Rs. 75 lakhs, the maximum loan percentage is 80 percent. While for a property exceeding Rs. 75 lakhs, the maximum loan percentage offered is 75 percent.

How to Maximise Home Loan Amount?

Here are some ways through which you can get maximum loan percentage:

1. You should focus on improving your credit score. A score of 750 is considered safe. 

2. Repay your existing loans. With EMIs out of the picture, your loan repayment ability will increase, leading to a larger loan amount approval.

3. You can add a co-applicant in case of having a low income or credit score. A co-applicant will help you cover it and improve the approved loan amount.

I’ll wrap up my answer here. I hope this turns out to be useful for you.

I read the answers shared by others and agree with them. Earlier, I wondered whether can I get a 100 percent home loan or not. However, upon inquiring through several banks, I found that lenders do not disburse 100% home loans due to security reasons. 

However, you can get a maximum of 90% of the property value as a home loan based on the total valuation of the property. Let me tell you more about this.

Does Bank Provide 100 Home Loans?

• You can’t borrow 100% of the property value as a home loan, as per the regulations of the RBI. 

• A certain amount of the cost of the property is given as a loan, and the rest has to be taken care of by the borrower. 

So, if you don’t have sufficient funds to cover the down payment of the home loan, I recommend waiting till the time you have enough money to take out a home loan. 

Like Jessica said, another option is to take a personal loan to cover the down payment. So, you do have other options. 

You can also take a top-up home loan to get some extra funds. A top up home loan is provided by financial institutions that allow you to borrow a specific amount over your current home loan amount.

This is all I have to share. I hope you now know can I get 100 home loan.

If you are wondering is 100 percent home loan possible, I would like to tell you that the answer is no. Any financial institution is not allowed to give the full amount of the home loan to the borrower as per the guidelines set by the RBI. I am sharing the reasons for the same below. Also, I will help you to know the maximum home loan amount you can get for your property.

Can I Get Full Amount of Home Loan?

As I said earlier, you cannot get 100% per cent of the loan amount for your house. At max, the RBI allows 90% of the amount to be disbursed. But, this too, has some guidelines that need to be followed. First, your loan amount, second, your Loan-To-Value ratio, and your credit report would determine the percentage of the amount of the property you can get. 

Moving to another important thing, I would like to tell you that there are other ways to find funds for your house apart from a home loan. One such way is taking a personal loan. Personal loans offer instant loan disbursement, which would help in buying or building your home. I had taken a personal loan for the same purpose last year through NoBroker. You can check them out

. They disbursed 10 lakh rupees instantly, which helped me in the home-buying process.

This is all from my side. I hope this helps you to know can we get 100 percent home loan in India.

I was planning to buy a home but don’t have the savings to pay the part not financed by a home loan. Hence, I started wondering, whether or not I can get a 100 percent loan for home? My friend Satish who is a banker informed me that Banks and other lending organisations usually don't give a 100% home loan. They want you to put down at least some amount of money.

Can Bank give 100 percent home loan?

No! 100 percent home loan financing is not possible by any Bank. Satish also highlighted that most Banks will lend you 75–90% of the cost of your home. 

It means that if your property costs, let's say, Rs. 60 lakhs, and your bank is providing a loan equal to 80% of the sale price, you will need to come up with Rs. 12 lakhs on your own. A portion of the contract value, often 10%, must be paid upfront, and another 10% must be paid after the property is taken. This enables to reduce the financial burden on you.

As of now, I am aware that it is usually not possible to obtain a 100 percent loan for home. I realise that it is crucial to shop around and compare lenders while thinking about obtaining a home loan. Also, I need to be sure that I can afford the monthly installments and that you are eligible for the loan.

Read More:

Availing a home loan before investing in a property is a good move. It will double-ensure that the property is verified. But do learn that home loan 100 percent finance is not possible in India. The maximum limit is 90% for a particular amount. I myself wanted to avail 100% loan, but no bank approved it. The RBI also does not allow 100% loan approval in India, so it is not possible here.

It is not possible to get 100% of the loan amount mainly due to security purposes, but you can get 90%. RBI has set certain rules for loan approval and here it is-

So you must have understood is it possible to get 100 percent home loan or not. 

The eligibility criteria for availing a home loan differs from one bank to another but here are some of the basic rules-

• The applicant must be an Indian resident

• The maximum loan term is usually capped at 30 years, so it is better to be 30 years or below age while applying for a home loan

• Age limit for salaried individuals is 21 to 65 years and for self-employed individuals,it is 21 years to 65 years

• The applicant must have a minimum salary of Rs 10,000 per month

• his/her business income must be Rs 2 lakh per annum

• Maximum loan tenure is of 30 years

• The applicant must have a good credit score

A home loan 100 percent is not possible to avail of at any bank.