Smart Loan Planning for Every Financial Goal

The RBI repo rate is 5.25% as of February 2026, after a cumulative 125 bps reduction during 2025 (from 6.50%). All floating-rate loans linked to EBLR (External Benchmark Lending Rate) directly benefit from this cut. For a ₹50 lakh home loan over 20 years, a 1% rate reduction saves approximately ₹7,000/month in EMI and over ₹16 lakh in total interest. Public sector banks currently offer home loans from 7.15-7.30%.

Banks typically allow EMI up to 40-50% of your net monthly income (FOIR — Fixed Obligation to Income Ratio). As a thumb rule, you can get approximately 50-60 times your net monthly salary as home loan. For example, if your take-home salary is ₹80,000/month with no existing EMIs, you can get approximately ₹40-48 lakh home loan at current rates. A CIBIL score of 750+ helps secure the best rate and higher loan amount.

EBLR (External Benchmark Lending Rate) is directly linked to the RBI repo rate and changes automatically when the repo rate changes. MCLR (Marginal Cost of Funds Based Lending Rate) is an internal benchmark set by each bank and resets at fixed intervals (6-12 months). Since October 2019, RBI mandates all new floating rate retail loans to be linked to external benchmarks (EBLR). EBLR loans are generally recommended as they transmit rate cuts faster. If you're still on an MCLR loan, consider a balance transfer to an EBLR-linked loan.

Yes, multiple options exist for collateral-free business loans. MUDRA Yojana provides loans up to ₹20 lakh without collateral (Shishu up to ₹50K, Kishore ₹50K-5L, Tarun ₹5L-20L). The CGTMSE scheme provides government guarantee for collateral-free loans up to ₹5 crore for MSMEs. Stand-Up India provides loans from ₹10 lakh to ₹1 crore for SC/ST and women entrepreneurs. Many banks and NBFCs also offer unsecured business loans up to ₹50 lakh based on ITR, GST returns, and bank statement analysis.

This depends on your loan interest rate, tax regime, and investment returns. If your home loan rate is 8.5% (effective cost after tax benefit in old regime ~6%), and equity mutual funds can deliver 12-14% long-term, investing may be better. However, in the new tax regime where Section 24 benefit is not available on self-occupied property, the effective loan cost is the full 8.5% — making prepayment more attractive. Key point: RBI has banned prepayment penalties on floating-rate home loans from January 2026. Our CA team can help you model the optimal prepay vs invest decision for your specific case.

Typical documents required include: Identity proof (Aadhaar, PAN, Passport), address proof, last 6 months' bank statements, last 3 months' salary slips, Form 16 or ITR for last 2-3 years, property documents (sale agreement, title deed, approved plan, NOC), and passport-size photographs. For self-employed borrowers: business registration, GST returns, audited financial statements (last 3 years), and CA certificate of income are also needed. We assist with complete documentation and filing.

Yes, NRIs can avail home loans in India for purchase, construction, or renovation of residential property. Most banks offer NRI home loans at rates similar to resident Indians (sometimes 0.25-0.50% higher). EMI payments can be made from NRE/NRO accounts. FEMA compliance and RBI norms for NRI property acquisition must be followed. Tax benefits under Section 80C and 24(b) are available to NRIs under the old tax regime. Our team provides end-to-end NRI home loan assistance including FEMA advisory.

To improve your CIBIL score: pay all EMIs and credit card bills on time (35% weightage), keep credit utilization below 30% of limit, maintain a healthy mix of secured and unsecured loans, avoid multiple loan enquiries in a short period, check your CIBIL report regularly for errors and dispute them, and don't close old credit cards as they add to credit history length. A score above 750 typically qualifies you for the best rates and quick approvals. Score improvement usually takes 3-6 months of disciplined credit behaviour.