India Home Loans: RBI LTV Guidelines, EBLR Repo Benchmark, FOIR, and Section 24(b) Tax Deductions

Comprehensive Indian home loan guide: RBI loan-to-value caps, External Benchmark Lending Rates (EBLR), Fixed Obligation to Income Ratio (FOIR), and Income Tax deductions under Section 24(b) and 80C.

Updated 2026-09-06 · Audited against Reserve Bank of India (RBI) notifications and Income Tax Department rules. · Fact-Checked Lending Norms

RBI Loan-to-Value (LTV) Tiered Caps

The Reserve Bank of India (RBI) mandates maximum LTV caps based on property ticket size: up to 90% LTV for small loans under ₹30 Lakh; up to 80% LTV for loans between ₹30 Lakh and ₹75 Lakh; and a maximum 75% LTV for loans exceeding ₹75 Lakh. Borrowers must fund the remaining balance as margin money.

External Benchmark Lending Rate (EBLR)

All floating rate retail home loans from scheduled commercial banks are legally mandated to link to an external benchmark, almost universally the RBI Repo Rate (Repo-linked Lending Rate - RLLR) plus a defined credit spread, ensuring instant monetary policy transmission.

Fixed Obligation to Income Ratio (FOIR 40%–50%)

Banks and Housing Finance Companies (HFCs) determine borrowing eligibility using the Fixed Obligation to Income Ratio (FOIR). Total EMIs across existing debts and the proposed home loan cannot exceed 40% to 50% of the applicant's Net Monthly Income (NMI).

Tax Deductions (Section 24b & Section 80C)

Borrowers under the old tax regime can claim deductions up to ₹2,00,000 annually on home loan interest payments for self-occupied properties under Section 24(b), and up to ₹1,50,000 for principal repayment and stamp duty under Section 80C.

ℹ️ Statutory Notice & Methodology

Global Finance Calculator provides mathematical estimates for education, planning, and comparison — not regulated financial advice or credit pre-approval. Tax legislation, statutory central bank buffers, and underwriting criteria change. Confirm critical figures with official regulatory publications or a licensed mortgage broker before signing contracts.