It depends on a person’s repaying capacity based on your income. You can add your spouse’s income to increase the amount of loan.
Tax benefits are available to consumers of house loans for the interest component as well as principal component of the housing loans. The current budget has left the upper limit of the interest payment deduction at Rs 150,000 per annum. The section 80C also allows tax benefits on principal repayments.
In reducing balance you reduce the amount of principal payment already paid by you from the initial loan amount. You pay interest only on principal unpaid till that point of time and not the entire loan amount.
In a floating interest rate, you interest payment will vary according to the market lending rate. If interest rates rise your interest payments will rise and vice-versa. You bear the risk of interest fluctuations in the market. Floating rates are slightly cheaper than fixed interest rates.
In a fixed interest rate, your interest rate is fixed over the entire tenure of loan.
Given below is the standard list of documents required for a home loan, some of the documents and terms may differ depending on the policy of the HFC.