Home Loan Eligibility and Documents in India: A Delhi NCR Guide

Updated October 18, 2026

Before you shortlist flats in Noida, Gurugram or Ghaziabad, it helps to know what a bank will actually lend you. This guide covers how lenders assess eligibility, where rates stand as of 18 October 2026, which documents to keep ready, and what the tax and PMAY position is today.

A note on sources: the rate and eligibility figures below come mostly from lender pages and comparison sites. They differ slightly from one source to the next, and lenders change them often. Treat them as ranges, and confirm the final number with your lender.

How banks assess home loan eligibility

Lenders look at your ability to repay, your repayment record, and the property. In practice that comes down to three things: income, FOIR and credit score. Age, job stability and the property’s value and location also count.

Income and stability

One lender’s criteria ask for a salaried applicant with at least one year in the current company and two years in total. Its published minimum income is ₹12,000 a month, though the same lender notes that approval generally starts around ₹25,000 a month, depending on location. Another lender asks for three years of work experience for salaried applicants and over three years of business continuity for the self-employed. Requirements vary, so compare before you apply.

For self-employed applicants, one lender asks for at least two years in the current business and three in total.

FOIR: how much of your income is already committed

FOIR (Fixed Obligation to Income Ratio) shows how much of your monthly income goes to fixed payments. It compares your monthly income with fixed liabilities such as EMIs and rent. Most lenders prefer a FOIR below 40% to 50%.

Here is a simple illustration. Say you earn ₹1,00,000 a month, the lender allows a 50% FOIR, and you already pay ₹15,000 in EMIs. That leaves about ₹35,000 for the new EMI. One aggregator lists a ₹50 lakh, 20-year loan at 7.25% with an EMI of ₹39,113. On those terms, ₹35,000 would support a loan of roughly ₹44 lakh. This is only an illustration, not an offer.

Clearing small loans and card balances before you apply can raise the amount you qualify for. A co-applicant such as a spouse, with their income documents, adds to the combined income the lender counts.

Credit score

Many lenders treat 700 or above as the ideal bureau score. Your score also affects pricing. One source says the rate offered depends on CIBIL score, loan amount, occupation, repayment capacity and borrower category. Check your credit report a few weeks before applying so you have time to fix errors.

Home loan interest rates: where things stand

On 7 October 2026, the RBI’s Monetary Policy Committee unanimously raised the repo rate by 25 basis points, from 5.25% to 5.50%. This was the first hike since February 2023. For floating-rate loans linked to an external benchmark, the change takes effect on your next scheduled reset date. Lenders may therefore still be adjusting their advertised rates, so quotes can move.

Lender	Quoted rate (p.a.)	Source and date
HDFC Bank	From 7.45%	Paisabazaar, rates as on 13 October 2026
ICICI Bank	From 7.70%	Paisabazaar, rates as on 13 October 2026
SBI	7.25% to 8.45% (EBLR 8.15%)	UrbanMoney, October 2026

Comparison sites put the market-wide starting point at about 7.35%. Another aggregator showed slightly lower starting figures for some banks, such as SBI from 7.25% and HDFC Bank from 7.20%, but it did not give a clear date. Expect a gap of a few tenths of a percentage point between sources.

These are starting rates. Your own rate depends on your profile. For self-employed borrowers, one comparison site shows ranges such as 7.25% to 8.45% at SBI and 8% to 13.45% at HDFC Bank. These ranges are wide, so ask each lender for a written quote.

Documents for salaried applicants

PAN and Aadhaar, passport or voter ID for identity and address.
Salary slips for the last three months and six months of bank statements. Some lenders ask for up to six months of slips.
Income tax returns and Form 16 for the previous two financial years, which some lenders ask for.
Property papers such as the allotment letter, buyer agreement and title documents.
Co-applicant documents, if you are applying jointly.

Documents for self-employed applicants

Lenders go through your business records more closely. One lender lists PAN, ID proof, ITR for the last two years, financial statements (P&L and balance sheet), GST returns where applicable, six months of bank statements and business registration proof. The same lender says it looks at GST returns, bank statements, business cash flow and ITR.

Professionals such as doctors, chartered accountants, architects and lawyers may be assessed under a separate self-employed professional category. Keep your ITR figures consistent with your bank credits. Gaps between the two are a common reason for delays.

Tax benefits: check which regime you are in

The new tax regime is now the default, and most home loan deductions apply only if you choose the old regime. For a self-occupied home, under the old regime:

Section 24(b) allows up to ₹2 lakh a year on home loan interest.
Section 80C allows up to ₹1.5 lakh on principal repayment. This limit is shared with your other 80C investments.

Under the new regime, a self-occupied house gets no 80C principal benefit and no 24(b) interest benefit. For a rented-out home, interest can be set against rental income, and any loss set off against other income is capped at ₹2 lakh.

A few websites mention a ₹3 lakh interest limit after Budget 2025. Most sources I found, including the more recent ones, state ₹2 lakh for a self-occupied home. I could not verify the ₹3 lakh claim, so do not plan around it.

The tax law itself is also changing. Income up to FY 2025-26 is governed by the Income-tax Act, 1961, and later years fall under the new Income-tax Act, 2025. One source says the ₹2 lakh and ₹1.5 lakh caps remain unchanged under the new Act, but section numbers differ. I could not confirm this against the Act itself, so check with a chartered accountant before you file. Under both laws, only the interest part of the EMI counts under 24(b) and only the principal under 80C. Your lender’s annual certificate splits the two.

PMAY: what is available now

The urban scheme is now PMAY-U 2.0. It was approved by the Union Cabinet on 9 September 2024 and runs through 2029. The home loan part is the Interest Subsidy Scheme (ISS):

Up to ₹1.80 lakh, paid in five annual instalments of ₹36,000, at a 4% rate on the first ₹8 lakh of the loan.
Annual household income limits are ₹3 lakh (EWS), ₹6 lakh (LIG) and ₹9 lakh (MIG).
The loan can be up to ₹25 lakh, for a property valued up to ₹35 lakh.
You must not already own a home. Sources also flag Aadhaar name mismatches and earlier government housing benefits as common rejection reasons.

The old CLSS subsidy is closed. The CLSS closed to new applications in 2022.

Some reports mention a 30 September 2026 deadline. One source says that date applies to earlier approved homes under the first phase, while PMAY-U 2.0 runs until 2029. Other sites describe the date differently, so I cannot say for certain how it affects new ISS applicants. Check the official PMAY-U portal or ask your lender before relying on the subsidy.

Also compare the ₹35 lakh property cap with prices in your target area. Many new homes in NCR may be above it, so check each property before you count on the subsidy.

Before you apply

Pull your credit report and fix any errors.
List your existing EMIs and estimate your FOIR.
Collect the documents above, with ITR and bank statements that match.
Get written quotes from at least three lenders, and ask how the October repo hike affects the rate and your EMI.
Ask your CA whether the old or new tax regime suits you better.

Once you know your budget, you can search all properties on ADiHomes. If you want to compare areas, the guides to Greater Noida West, Dwarka Expressway and Indirapuram are a good place to start.

Disclaimer: This article is general information, not financial, tax or legal advice. Rates, eligibility rules and government schemes change, so confirm current terms with your lender, a tax adviser and official sources.

Sources

Updated 18 October 2026. This article is general information, not legal or financial advice; check current rules and project details before you decide.