How Much Will a Bank Lend Against Your Mumbai Flat? The RBI Loan-to-Value Limits
RBI caps home loans at 90%, 80% or 75% of the property value depending on loan size. In Mumbai most buyers land in the 75% slab, so plan your down payment around it.
Buyers often tell me the bank will "fund 90%". In Mumbai, that is rarely true. The Reserve Bank of India caps how much a bank or housing finance company can lend against a home, and the cap depends on the size of the loan.
The RBI limits
| Loan amount | Maximum loan-to-value (LTV) |
|---|---|
| Up to Rs 30 lakh | 90% of property value |
| Rs 30 lakh to Rs 75 lakh | 80% |
| Above Rs 75 lakh | 75% |
In Mumbai, almost every loan is above Rs 75 lakh. Plan for a 25% down payment, plus stamp duty.
What this means in Mumbai
With typical Mumbai prices, most home loans cross Rs 75 lakh. So the bank can lend at most 75% of the property value, and you fund the rest. On a Rs 2 crore flat, that is a down payment of at least Rs 50 lakh.
Costs you pay on top
- Stamp duty and registration. Plan for these separately. See stamp duty in Mumbai.
- Brokerage, legal checks and society transfer charges on a resale flat.
- Interiors and moving. Banks do not fund these under a home loan.
The cap is a ceiling, not a promise
Lenders also look at your repayment capacity, credit profile and the property itself: its age, condition and location. A lender can sanction less than the LTV cap, and some price loans better when the LTV is lower.
Tips before you sign
- Get an in-principle sanction before you pay a token.
- Ask the lender how it values the flat. The value it uses may be lower than your agreed price.
- Keep the down payment in a traceable bank account. For NRIs, see NRI home loan eligibility.
Frequently asked questions
What is the maximum home loan as a percentage of property value?
90% for loans up to Rs 30 lakh, 80% for loans of Rs 30 lakh to Rs 75 lakh, and 75% for loans above Rs 75 lakh, under RBI rules.
Can a bank lend 90% on a Rs 2 crore Mumbai flat?
No. A loan of that size is above Rs 75 lakh, so the cap is 75% of the property value.
Sources
This is general information, not legal or tax advice. Rules change, so check your own case with a lawyer or CA.
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Yanik
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