Which Bank Gives 90 Percent Home Loan in India?

If you are wondering which bank gives 90 percent home loan in India, then let me first clear it up for you that according to the RBI's directive, all banks must offer home loans up to INR 30 lakhs at a rate equal to 90% of the property's worth. The banks may request 20% of the margin for amounts higher than that. The aforementioned maximum is, however, subject to certain geographical restrictions.

You should check each lender's low interest rate and maximum loan amount while taking a home loan. However, increasing your margin payment will lower your interest rate and duration, resulting in a lighter debt load.

For residential loans of at least ₹30 lakh, the RBI permitted a loan-to-value ratio (LTV) of up to 90%. Previously 90% LTV was restricted to loans up to ₹20 lakh. LTV stands for the percentage of the property value that a bank may loan to a borrower. A 90% LTV means that the buyer will only be responsible for 10% of the property's worth, with the other 90% being financed by the banks.

Which bank is gives up to 90 percent home loan?

In metropolitan regions, loans up to Rs. 30 lakh come under the "affordable" category. Some banks do not include government expenses when determining the entire property value and disbursing loans, whereas some banks add stamp duty and registration fees. The risk weight—the capital that banks must set aside—attached to such loans will be 50% if the LTV is between 80% and 90%. For loans of Rs. 30 lakh, the risk weight is reduced to 35% if the LTV is less than 80%.

A bank must make more provisions as risk weights increase, which limits the bank's capacity to lend. The LTV is up to 80% for loans worth more than ₹30 lakh rupees and up to ₹75 lakh rupees. The LTV for loans over ₹75 lakh rupees will be 75%. The risk weight for loans with an LTV of up to 75% and between Rs. 30 lakh and Rs. 75 lakh has also been slightly decreased.

So, all banks provide 90 percent home loans in India. But I will tell you about the top 10 such banks here.

1. SBI Home Loan: SBI provides financing for up to 90% of a property's cost starting at 8.40% p.a. for terms up to 30 years. Additionally, SBI house loans offer women customers interest rate reductions of 0.05%, an overdraft facility, a balance transfer facility, step up loans, etc.

2. HDFC Home Loan: For loan amounts up to Rs. 10 crores and loan terms up to 30 years, HDFC offers house loans starting at 8.20% p.a. For agriculturalists, horticulturists, dairy farmers, etc. who live in rural and urban areas as well as self-employed or salaried applicants wanting to develop or buy homes in their native towns and villages, the bank also offers a rural housing programme.

3. ICICI Bank Home Loan: For terms up to 30 years and loan amounts up to Rs. 10 crore, ICICI Bank offers house loans starting at 8.75% p.a.

4. Home loans from Kotak Mahindra: For terms up to 30 years and loan amounts up to Rs. 10 crore, Kotak Mahindra Bank offers house loans starting at 8.30% p.a.

5. PNB Home Loan: Home loans from Punjab National Bank are available for terms up to 30 years and for loan amounts up to 90% of the value of the property starting at 8.55% p.a.

6. Bank of Baroda Home Loan: For terms up to 30 years and loan amounts up to Rs. 20 crores, Bank of Baroda offers house loans starting at 8.60% p.a.

7. Union Bank of India Home Loan: For terms of up to 30 years, Union Bank of India provides financing for up to 90% of the cost of real estate starting at 8.25% p.a.

8. IDFC First Home Loan: For loan terms up to 30 years and loan amounts up to Rs 5 crore, IDFC First Bank offers house loans starting at 8.75% p.a. To increase the eligibility for house loans for customers who are self-employed, the bank offers a variety of home loan schemes and substitute programmes. In addition, the bank provides housing loans to clients without regular income documentation.

9. Federal Bank Home Loan: Home loans up to Rs 15 crore are available from Federal Bank at affordable interest rates starting at 8.37% p.a. for terms up to 30 years.

10.  Indian Bank Home Loan: Home loans from Indian Bank are available for terms up to 30 years at 8.50% p.a. and for loan amounts up to 90% of the value of the property.

Now you know which bank gives 90 percent home loan in India.

Do not worry about which bank gives 90 percent home loan. Almost every bank gives a 90% home loan if the loan amount is below 30 lakhs. If the amount is more, the 90 per cent quote will come to 80 per cent or even less. Now several factors will affect this value primarily the borrower’s credit score, tenure, repayment history, and other factors.

Can We Get 90 Percent Home Loan?

Yes, a home loan 90 percent is allowed in cases where the loan amount is below Rs 30 lakhs. Banks like

• Axis Bank

• HDFC

• ICICI Bank and even

• SBI allows 90% home loan

RBI has strictly mentioned that Loan to Value Ratio of up to 90% is allowed only in cases where the home loan is below 30 lakhs. 

Can I take 100% home loan?

No. RBI has mentioned that in no case a 100% home loan should be offered by the lender hence no one can avail 100% home loan.

You can visit your bank’s website or branch to enquire about it in more detail. Hope this was helpful.

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I think buying a home is one the biggest asset that we can own. That is why so many people dream of buying a home in their lifetime. I recently achieved this goal of mine and I couldn’t be happier about it. I can tell you that buying a house is not a piece of cake. It requires your time and a lot of money. You should also be aware of banks offering 90 percent home loan, all the legal approvals that are needed for the house and many other things. 

Banks offering 90 percent home loan in India

The first thing that you should know is that no bank is allowed to lend 100% amount to the borrower. But you can certainly get a 90% home loan. 

As per the RBI guidelines, a home loan amount can go up to 90% of the value of the property that you are buying if the loan amount is less than Rs. 30 lakhs. If the loan amount is between Rs.30 lakhs to Rs.75 lakhs, you will get a loan on 80% value of the property. Similarly, if the property value is above Rs. 75 lakhs, you will get only 75% of the house value.

Let me explain this to you through a table.

To know about the banks offering 90 percent home loan, you can go through Mr. Japneet’s answer.

You will have a combination of two things to pay for a home; the percentage of the house loan amount that a bank will give you, and the portion of the purchase price that will still require a down payment, which you will pay upfront. You cannot get a loan for the entire purchase price of your property since banks are not allowed to lend or finance the full value of the property. But, in rare situations, you may be able to get a 90% home loan.

In accordance with Reserve Bank of India (RBI) norms, a home loan 90 percent can reach values of less than Rs. 30 lakhs of the property. For loans between Rs. 30 and Rs. 75 lakhs, you will be eligible for an 80% house loan.

I went through the list of banks that provide a home loan 90 percent of property value. I entirely agree with the list that he provided. However, I’d like to add the names of 2 banks that also provides home loan upto 90 percent.

The names of the banks are IDBI Bank and IndusInd Bank. IDBI provides a loan to the property value of 75% - 90%, and interest rates of 8.00% - 11.15%. The IndusInd bank also provides a 90% home loan where the property value is less than Rs. 30 lakhs and a down payment percentage of 10%. I hope this helps:)

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