Home Loan for a Gurgaon Property: Process, Eligibility, LTV & GST on Under-Construction Flats (2026)

Everything on financing a Gurgaon home: the step-by-step loan process, RBI's LTV limits, eligibility and documents, how disbursement works for under-construction flats, GST rules, and tax benefits.

The home loan process, step by step

Check eligibility and get a pre-approval / sanction based on income and credit score

Finalise the property and submit property papers for the bank's legal and technical valuation
Bank verifies builder credibility, RERA, approvals and construction stage
Loan sanction letter, then sign agreement, then disbursement (lump sum for ready property, staged for under-construction)
Registration and mortgage creation complete the process

RBI's LTV (loan-to-value) limits

Up to ₹30 lakh loan: LTV up to 90% of property value

Above ₹30 lakh to ₹75 lakh: up to 80%
Above ₹75 lakh: capped at 75% — you fund the rest as down payment
Stamp duty, registration charges and GST are NOT included in the property value for LTV, so budget them separately from your loan

Eligibility and credit factors

A CIBIL score of ~750+ gets the best rates; lower scores mean higher rates or rejection

Salaried: typically ~2 years total work experience with 6–12 months in the current job; self-employed: ~3 years business continuity with ITRs
Lenders cap EMIs at roughly 40–50% of net income (FOIR)
Age, existing liabilities, and loan tenure (up to ~30 years) all affect the sanctioned amount

Documents you'll need

Identity/address proof and PAN

Income proof: salary slips, Form 16, and bank statements (or ITRs and business proof for self-employed)
Complete property papers: sale/builder agreement, title documents, approved building plan, RERA and DTCP details
For under-construction: the demand letter and construction-linked payment plan

How disbursement works for under-construction flats

Funds are released in stages tied to verified construction progress (construction-linked plan), not all at once

You typically pay 'pre-EMI' (interest only) on the disbursed amount until full disbursement, then full EMIs begin
Delays in construction extend your pre-EMI period — a real cost in Gurgaon's under-construction market
Some builders offer subvention schemes; read the terms carefully

GST on under-construction property

Under-construction non-affordable homes: 5% GST, with NO input tax credit

Affordable housing: 1% GST (carpet area up to 60 sq m in metros including Delhi-NCR, and price up to ₹45 lakh)
Ready-to-move flats that already have a completion/occupation certificate are EXEMPT from GST — a genuine saving
GST applies to the construction value only; there is no GST on the land portion or on resale of completed property

Tax benefits and 2026 rule changes

Section 80C: up to ₹1.5 lakh deduction on principal repayment (old regime)

Section 24(b): up to ₹2 lakh deduction on interest for a self-occupied home (old regime)
PMAY / affordable-housing benefits may apply to eligible first-time buyers
Under RBI's 2025 pre-payment directions, lenders cannot charge foreclosure/prepayment fees on floating-rate loans to individuals for non-business purposes (for loans sanctioned/renewed on or after 1 Jan 2026)

Questions, answered

How much home loan can I get in Gurgaon?

It depends on RBI's LTV limits and your income. For loans up to ₹30 lakh you can borrow up to 90% of value, ₹30–75 lakh up to 80%, and above ₹75 lakh up to 75%. Note that stamp duty, registration, and GST are excluded from the LTV, so keep those funds separately.

Is GST payable on a Gurgaon flat?

Only on under-construction property: 5% for non-affordable homes (no input tax credit) and 1% for affordable housing (carpet area up to 60 sq m in Delhi-NCR and price up to ₹45 lakh). Ready-to-move flats with a completion/occupation certificate are GST-exempt.

What CIBIL score do I need for a home loan?

Aim for around 750 or higher to get the best interest rates and smooth approval. Lower scores can still get a loan but usually at higher rates or with a lower sanctioned amount. Lenders also assess income, existing EMIs, job stability, and the property's approvals.

How does a loan work for an under-construction flat?

The bank disburses in stages linked to verified construction progress. You pay pre-EMI (interest on the disbursed amount) until full disbursement, after which full EMIs begin. Construction delays extend your pre-EMI period, so factor delivery risk into an under-construction purchase.

Can I save GST by buying a ready-to-move flat?

Yes. Ready-to-move flats that already have a completion or occupation certificate carry no GST, unlike under-construction homes at 5% (or 1% affordable). On a high-value Gurgaon flat this is a meaningful saving, though ready units often cost more upfront.

Are there prepayment charges on a home loan now?

For floating-rate home loans to individuals for non-business purposes, RBI's 2025 directions bar foreclosure and prepayment charges (for loans sanctioned or renewed on or after 1 January 2026). This lets you prepay or foreclose without penalty. Confirm the terms with your specific lender.