MoneyLens / Home loans
Your loan, explained.
Home loan · Floating rate · Godavari Home Finance Ltd · ••••3317
Illustrative
Your loan as sanctioned
ContractSanction + KFS
Loan amount
₹48,00,000
Sanction letter
Interest rate
8.75%
RBI repo rate + 3.25% · or 9.40% fixed
Loan period
20.0 years
240 EMIs of ₹42,418
Interest structure
Floating
3-year fixed option offered
Figures come from the sanction letter and KFS. Nothing is signed or disbursed yet.
Myra's most important observations
How the ₹60.0 L home is paid for
Sanction letter · KFSLoan ₹48.0 L
You ₹12.0 L
Paid by you, outside the loan
- Own contribution (price less the loan)₹12,00,000
- Stamp duty and registration₹4,20,000
- Stamp duty on the mortgage₹24,000
- Deducted from the loan (processing fee, gst on fee, legal and technical fee…)₹66,200
- Cash you need₹17,10,200
The loan is 80% of the price; RBI's limit for a loan this size is 80%.
Where ₹48,00,000 goes before it reaches you
Sanction p.2₹48.00 L
Sanctioned
−₹10,000
Processing fee
−₹1,800
GST on fee
−₹5,900
Legal and technical fee
−₹48,500
Home-loan protection cover
₹47.34 L
You receive
Axis starts at ₹46.74 L so the deductions are visible.
Interest rate vs real borrowing cost
Myra rebuilt the cash flows: you receive ₹47,33,800 and pay 240 × ₹42,418. The KFS figure appears to leave out the insurance premium.
Loan Cost Intelligence
What Myra found and reconciled across your documents.
| Analysis | What Myra found | Status | Source |
|---|---|---|---|
| Document conflict | The insurance is called optional, but it's deducted from your loan | Finding | KFS p.2, §B note 2 · Sanction p.2 |
| Borrowing cost | The real annual cost is 8.94%, not the disclosed 8.80% | Finding | KFS p.2, §C row 9 · Sanction p.2 · KFS p.1, §A |
| Document conflict | Your documents disagree on can the spread change? | Finding | Sanction p.1 · Document p.6, cl. 5.4 |
| Tax benefit | About ₹26,469 less tax in tax year 2026-27 (old regime) | Finding | KFS p.1, §A |
| Net disbursement | You'll receive ₹47,33,800, not ₹48,00,000 | Verified | Sanction p.2 · KFS p.1, §A |
| Total cost | You repay ₹1.02 Cr for ₹48.00 L borrowed | Verified | KFS p.1, §A |
| Floating rate | If the rate rises by 1%, your EMI goes up about ₹3,111, or the loan runs 72 EMIs longer | Verified | KFS p.1, §A |
| Exit flexibility | No charge for prepaying or closing early | Verified | KFS p.2, §B |
| Cooling-off | 3 days after the money arrives to change your mind | Verified | KFS p.3, §D |
Document conflict
Needs answerYour documents disagree on can the spread change?
Document p.6, cl. 5.4
The Lender may revise the spread upon reassessment of the Borrower's credit risk profile.
Sanction p.1
The spread of 3.25% over the RBI repo rate shall remain fixed for the tenure of the loan.
The sanction letter p.1 says fixed; the document p.6, cl. 5.4 says revisable. Myra has used the later document. Ask the lender to confirm in writing which applies.
What a missed EMI triggers
Day 1
EMI bounces
₹590 bounce charge; 2% a month penal charge starts on the overdue EMI (no GST, no interest on it)
1–30 days
SMA-0
Reminders; lenders report overdue status to credit bureaus (now every 15 days)
31–60 days
SMA-1
Penal charges keep accruing on each unpaid EMI
61–90 days
SMA-2
Recovery follow-up escalates under the lender's fair practices code
90+ days
NPA
Account can be classified non-performing; the lender may recall the full outstanding
Rules Myra checked
Versioned rules applied by loan type, borrower, lender type, sanction date and effective date. Myra never calls a charge prohibited without this check.
| Area | Rule and version | Applies to you? | What Myra found | Status |
|---|---|---|---|---|
| Loan-to-value | RBI LTV limits for housing loans · v1 (from 7 Jun 2017) | Yes · ₹48 L loan (banks; similar limits for HFCs) | 80% of the ₹60 L price, within the 80% limit for this loan size. | Verified |
| Floating-rate resets | RBI reset framework · v2 (from 1 Oct 2025) | Yes · floating-rate EMI loan · individual borrower · Housing finance company | Resets every 3 months; at each one you may choose a higher EMI, a longer tenure, both, or prepay. The draft loan agreement cl. 5.4 lets the spread be revised, which the sanction letter p.1 rules out. | Finding |
| Prepayment charges | RBI prepayment rules · v2 (sanction 12 Oct 2026) | Yes · floating rate · all RBI-regulated lenders (sanctioned from 2026) | No foreclosure or part-prepayment charge, as required. | Verified |
| Key Facts Statement | RBI KFS directions · v1 (from 1 Oct 2024) | Yes · sanctioned 12 Oct 2026 | KFS present; APR 8.80% disclosed, Myra's APR 8.94%. | Verified |
| Penal charges | RBI penal-charges rules · v1 (from 1 Jan 2024) | Yes · all regulated lenders | A separate penal charge of 2% a month, not added to the rate. | Verified |
| Original property documents | RBI release of documents · v1 (from 1 Dec 2023) | Yes · secured loan, at closure | Back within 30 days of closing, with the charge removed; ₹5,000 a day after that. | Applies at closure |
| Tax on home-loan interest and principal | Income-tax Act, 2025 · Section 22 and Section 123 | Old regime; self-occupied or let-out home | About ₹26,469 less tax in tax year 2026-27 (old regime) | Calculated |