Can I Get 90% Home Loan? Explore Your Options and Alternatives

Finding it hard to arrange a down payment? Learn if you can get a 90% home loan and understand eligibility requirements, and tips to secure financing for your dream home.
Home Loan
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2 min
08 October 2024
Buying a home is one of the most significant investments you will make in your life. But what if you don’t have enough savings for a large down payment? The question that comes to mind is, “Can I get 90% home loan?” The good news is that many lenders offer loans that cover up to 90% of the property value. In this guide, we will discuss the eligibility criteria and requirements for securing the loan amount you need.

What is a 90% home loan?

A 90% home loan means that you can borrow 90% of the property's value. For example, if you want to buy a home worth Rs. 50 lakh, you can take a loan of Rs. 45 lakh, while the remaining Rs. 5 lakh will be your down payment. This option is beneficial for first-time homebuyers who may struggle to save a large sum for the down payment.

Eligibility criteria for a home loan

You can apply for Bajaj Housing Finance Home Loan as long as you meet the home loan eligibility criteria mentioned below:

1. Nationality: You must be an Indian citizen residing in India.
2. Age: A salaried applicant must be between 23 years and 67 years, and a self-employed professional must be between 23 years and 70 years.
3. CIBIL Score: A CIBIL Score of 725 or higher is ideal to get a home loan.
4. Occupation: Salaried employee, a professional individual, and a self-employed individual.

Documents required for a home loan

Once you meet the eligibility criteria, you will need to provide a few documents to apply. These include:

  • KYC documents (identity and address proof)
  • Proof of income (salary slips or P&L statement)
  • Proof of business (for self-employed applicants), and
  • Account statements for the last 6 months

Benefits of a 90% home loan

A 90% home loan offers several benefits for borrowers:

  • Lower down payment: With a 90% loan, you only need to pay 10% of the property value as a down payment. This is helpful for those who may struggle to save a large sum.
  • Increased buying power: A higher loan amount can help you buy a more expensive property or one in a better location.
  • Flexibility in payments: With many lenders offering flexible repayment options, you can choose a tenure that suits your financial situation.

Things to consider before opting for a 90% home loan

While a 90% home loan can be attractive, there are a few things you should consider:

  • Higher EMIs: Borrowing a larger amount will result in higher monthly payments. Ensure that your monthly budget can accommodate this.
  • Insurance requirement: Some lenders may require you to take home loan insurance to cover your loan in case of unforeseen events.
  • Higher interest rates: Lenders might offer higher interest rates for loans that cover a significant portion of the property value. This can increase your overall repayment cost.

How to improve your chances of getting a 90% home loan

If you’re wondering, "Can I get a 90 percent home loan?" here are some tips to improve your chances:

  • Improve your credit score: Pay off outstanding debts and make timely payments to improve your score.
  • Save for a larger down payment: Even if a 90% loan is available, saving for a larger down payment can reduce your loan amount and EMI.
  • Choose a co-applicant: Adding a co-applicant with a stable income and good credit score can enhance your eligibility for a 90% home loan.

Why choose Bajaj Housing Finance for your home loan?

Bajaj Housing Finance offers competitive home loan options with convenient terms, making it easier for you to secure a home loan. Our online application process is user-friendly, and you can quickly check your eligibility using our home loan eligibility calculator. With easy application process and quick home loan approvals, Bajaj Housing Finance is a reliable choice for financing your dream home.

Here are a few benefits of opting for Bajaj Housing Finance Home Loan:

1. High loan amount: Make your dream home a reality with a high-value loan amount of up to Rs. 15 crore*.

2. Competitive interest rates: Enjoy low interest rates starting at just 8.25%* p.a, translating to affordable EMIs as low as Rs. 741/lakh*.

3. Quick approval: Get your loan application approved within 48 Hours*—sometimes even sooner.

4. Long tenure: Repay comfortably with a long tenure of up to 32 years, making your EMIs more manageable.

5. No foreclosure charges: Individual borrowers with a floating interest rate can foreclose or partially prepay their loan at no extra cost.

6. Convenient application process: Skip multiple branch visits with our hassle-free process and doorstep document collection service.

Additionally, you can opt for a balance transfer facility to move your existing loan to Bajaj Housing Finance for better interest rates and terms. This way, you can save on your overall interest outgo and pay off your loan faster.

Frequently asked questions

What is the impact of my property’s valuation on loan approval?
The property's valuation significantly affects loan approval since lenders usually offer a percentage of the property's current market value. A higher valuation can increase your loan eligibility, while a lower valuation may lead to a reduced loan amount or even rejection of your application.

Can I get a 90 percent home loan for under-construction properties?
Yes, you can get a 90 percent home loan for under-construction properties. However, lenders may have specific conditions, like a good credit score and reliable builder credentials. The loan disbursement might be in phases, linked to the property’s construction progress.

How can I reduce the interest rate on a 90 percent home loan?
To reduce your interest rate, maintain a high credit score, opt for shorter loan tenure, and consider transferring your home loan to another lender offering lower rates. Negotiating with the lender or choosing a floating interest rate can also help in reducing the cost.

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