Quick answer
For a luxury flat, banks lend at most 75% of the property value, released in stages as construction progresses. Stamp duty and registration cannot be financed, so on a ₹3 crore home you need about ₹92.7 lakh of your own funds before GST. Until the last disbursement you can pay interest-only pre-EMI or start the full EMI.
How much can you borrow? RBI's loan-to-value limits
| Loan amount | Maximum loan (LTV) | Minimum own contribution |
|---|---|---|
| Up to ₹30 lakh | 90% | 10% |
| ₹30 lakh – ₹75 lakh | 80% | 20% |
| Above ₹75 lakh | 75% | 25% |
Every home we represent falls in the last row. The same caps apply to banks (RBI Master Circular on Housing Finance) and housing finance companies (RBI HFC Directions, 2025).
Why stamp duty and registration come from your pocket
RBI tells lenders to leave stamp duty, registration and documentation charges out of the "cost of the property" when computing LTV for any home above ₹10 lakh. In Surat those add 5.9% (4.9% duty plus 1% registration — see our stamp duty guide), so plan for them separately.
Luxury ticket maths: what you need upfront
Using the starting prices of six projects we represent, here is the maximum loan at 75% and the cash you would need, before GST and builder charges.
| Project | From | Max loan (75%) | Your 25% | Stamp duty + reg. | Own funds needed |
|---|---|---|---|---|---|
| Avadh Paloma Pride | On request | ₹0 lakh | ₹0 lakh | ₹0 lakh | ₹0 lakh |
| Avadh Elrica | ₹2.99 Cr‡ | ₹224.25 lakh | ₹74.75 lakh | ₹17.64 lakh | ₹92.39 lakh |
| Avadh Miliana | ₹3.78 Cr† | ₹283.5 lakh | ₹94.5 lakh | ₹22.3 lakh | ₹116.8 lakh |
| Rajhans Silvana | ₹4.95 Cr† | ₹371.25 lakh | ₹123.75 lakh | ₹29.21 lakh | ₹152.96 lakh |
| Rajhans Golf Link | ₹7.48 Cr† | ₹561 lakh | ₹187 lakh | ₹44.13 lakh | ₹231.13 lakh |
| Pramukh One Tapi | ₹14.00 Cr‡ | ₹1,050 lakh | ₹350 lakh | ₹82.6 lakh | ₹432.6 lakh |
† Listed: price shown on listing portals. ‡ Tentative: two portals agree but the builder has not published a price list. Starting prices as of 29 Sep 2026; they change — ask us for the current price sheet.
How disbursal works for an under-construction flat
Construction-linked demands
RBI does not allow lenders to release the full loan upfront on an incomplete project; disbursal must track construction stages. In practice the builder raises a demand letter at each stage — plinth, each slab group, brickwork, finishing — with an architect's certificate. You pay your share, forward the demand to the bank, and the bank pays its share directly to the project's RERA collection account after checking progress. Our buying process guide covers the agreement and demand sequence.
Pre-EMI vs full EMI
| Pre-EMI | Full EMI | |
|---|---|---|
| What you pay | Interest on the amount disbursed | Principal + interest on the amount disbursed |
| Monthly outgo early on | Lower | Higher |
| Principal reduces from | Final disbursement | First disbursement |
| Total interest over the loan | Higher | Lower |
| Suits | Buyers paying rent until possession | Buyers who can afford it and want to finish sooner |
Example at 8.50%: with ₹50 lakh disbursed, pre-EMI is about ₹35,417 a month; at ₹1 crore disbursed it is about ₹70,833. HDFC Bank calls the full-EMI option "tranche-based EMI".
EMI on ₹2 crore, ₹3 crore and ₹5 crore loans
| Loan | EMI — 20 years | EMI — 25 years | Total interest — 20 years |
|---|---|---|---|
| ₹2,00,00,000 | ₹1,73,565 | ₹1,61,045 | ₹2,16,55,515 |
| ₹3,00,00,000 | ₹2,60,347 | ₹2,41,568 | ₹3,24,83,273 |
| ₹5,00,00,000 | ₹4,33,912 | ₹4,02,614 | ₹5,41,38,788 |
8.50% is the lowest rate ICICI Bank published for loans above ₹75 lakh on 29 Sep 2026. Use the calculator to test your own numbers.
Home-loan rates at major lenders — snapshot
| Lender | Published rate | Note |
|---|---|---|
| SBI | From 7.25% | w.e.f. 1 Apr 2026 |
| HDFC Bank | 7.75% – 13.20% | Repo-linked (repo + 2.50% to 7.95%) |
| ICICI Bank (loan above ₹75 lakh) | 8.50% – 9.65% salaried; 8.50% – 9.80% self-employed | Bank rate card, checked 29 Sep 2026 |
| Axis Bank | From 8.20% | |
| Kotak Mahindra Bank | From 7.60% | |
| Bank of Baroda | From 7.20% | Floating, linked to BRLLR |
RBI's policy repo rate is 5.25%. Most home loans are repo-linked, so your rate moves with it. "From" rates go to the strongest credit profiles; ask each lender for a sanction letter before comparing.
Eligibility for large loans
Salaried
Lenders look at net monthly income, existing EMIs and credit score. A common working limit is total EMIs within roughly half of take-home pay, so a ₹2.6 lakh EMI (₹3 crore over 20 years) generally needs household take-home of about ₹5 lakh a month — adding a co-applicant's income helps.
Self-employed and business owners
Surat's textile, diamond and trading families are usually assessed on two to three years of ITRs, audited financials and GST returns. Declared income, not turnover, drives eligibility — so plan the year's filings before you apply.
Joint loans
Co-owners who are co-borrowers can each claim the tax deduction on their share of interest and principal in the old regime. Registering the home in a woman's name alone also saves the 1% registration fee.
Tax benefits: old vs new regime
| Deduction | Old regime | New regime |
|---|---|---|
| Principal repayment (80C; now section 123) | Within ₹1.5 lakh combined limit | Not available |
| Interest — self-occupied home | Up to ₹2 lakh a year | Not available |
| Interest — let-out home | Full interest; loss set-off capped at ₹2 lakh | Allowed against rent; loss cannot be set off or carried forward |
| Pre-construction interest | In five equal instalments from the year construction completes, within the same cap | — |
The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026 and renumbered these provisions; the limits above are unchanged. Confirm your position with a chartered accountant — for a ₹3 crore loan the interest far exceeds the ₹2 lakh cap, so regime choice matters.
Documents checklist
| Everyone | Salaried | Self-employed | Property |
|---|---|---|---|
| PAN, Aadhaar/passport, photos, address proof | Latest Form 16, salary slips, 6 months' bank statements | 2 years' CA-certified ITRs, P&L and balance sheet, 6 months' bank statements, GST returns | RERA certificate, allotment letter, registered agreement for sale, builder NOC, demand letters |
Processing fees and other costs
Expect a processing fee of about 0.25%–0.5% of the loan plus GST (ICICI Bank publishes 0.5%), legal and valuation charges, and stamp duty on the mortgage documents where applicable. Ask for the fee cap in writing — on a ₹3 crore loan the difference between capped and uncapped fees is material.
Buying from abroad? The NRI guide covers NRE/NRO repayment and power of attorney.
Sources
- RBI (Housing Finance Companies) Directions, 2025 — para 58 (NHB copy) — 28 Nov 2025
- RBI Master Circular — Housing Finance, 2023 (FIDC copy) — 3 Apr 2023
- ICICI Bank — Pre-EMI vs full EMI
- ICICI Bank — Home loan interest rates — checked 29 Sep 2026
- HDFC Bank — Home loan interest rates — checked 29 Sep 2026
- SBI — Home loan interest rates — checked 29 Sep 2026
- Income Tax Department — ITR help, AY 2026-27
- Business Today — Section 80C becomes section 123 — 24 Mar 2026
Last reviewed 29 Sep 2026 by the Surat Niwas research desk under our editorial policy. Rates are a dated snapshot; lenders change them without notice. This guide is general information, not legal, tax or investment advice — confirm figures with the official portal, your bank or your advocate before you act.