Buying a home in Mumbai is a dream of many and for all the right reasons. The city’s persona as the “city of dreams” and the rapidly evolving infrastructure and real estate has led to a steep increase in demand for property. In 2025, especially with the rising demand and introduction of newer real estate projects, navigating the confusing and overwhelming road of home loans, interest rates, and payment plans can feel daunting and often leave one wondering. Understanding these complex yet crucial financial instruments in a market like Mumbai can make all the difference and put you ahead of your homebuying journey.
With this blog let us understand the many nuances of home loans in Mumbai in 2025 and break down the different types of home loans and explore other promising payment plans that homebuyers today are using and understand how JSB Group’s builder subvention scheme can turn buying your dream home into a reality.
On a fundamental level, home loans are personal loans taken by individuals and investors to buy a home in upcoming and already in development residential projects. Usually, banks and other authentic and credible financial institutions lend money that you need to make the purchase which then the person taking out the loan is expected to repay in form of monthly installments also known as EMI’s, over a fixed period of time, often ranging anywhere between 5-30 years, depending on your loan type, the loaned amount, amongst other things.
Home loans were introduced with only one thing in mind, “making buying a home more affordable” by breaking down the upfront and total cost into manageable payment pockets.
Home loans are more than mere payment options, they're the bridge between you and your dreams, designed to give you more purchasing power, not just improving your personal finances but giving a gradual but much needed boost to India's economy.
When it comes to home loans, individuals are free to choose as home loans are largely diversified and suited for all kinds of different needs and preferences.
This is the most common and widely availed home loan, first time homebuyers sought after to purchase ready to move in apartments and under construction residential properties. This type of home loan is best suitable for first time homebuyers, investors, and individuals upgrading to a new home. Basic home loans come with flexible tenure options for repayment and usually are 75%-90% of the total property value, subject to eligibility criteria.
Home construction loans are designed for people who already possess a residential plot and want to build a home on it, unlike people who buy pre-built, ready to move in properties. Unlike home purchase loans where a lump sum amount is given for home purchase, home construction loans are given in stages, depending on the phase of construction eg, foundation, walls, roofing, etc, a problem solving solutions for landowners wanting to build a home.
If you are a homeowner looking to upgrade your existing property into a bigger space, renovate, or repair, home improvements loans are your go-to choice. The loan covers a wide range of renovations options and is being provided to property owners at lower interest rates when compared to personal loans. The loan offers flexible tenure of up to 15 years and the amount varies from person to person depending on the total renovation cost.
Balance transfer home loan in simple terms means moving your home loan from your current bank to a new bank that is offering lower interest rate, enabling you to pay lesser EMI’s on your purchase. How it works is, when you transfer your home to a new bank, the new bank pays off your loan to the old bank and you then start paying your dues to the new bank. Some banks also provide additional funds in the form of top-up loans during the transfer period to ensure a smooth transition.
Choosing the right type of home loan is indeed essential and can make a lot of difference, but understanding the types of interest rates attached to the loan is equally important because after all the repayment road map and the EMI’s you pay are heavily influenced by it. Let’s better understand the 4 major types of interest rates on home loans and what impact they can have on you:
As the name suggests, fixed interest rates means that your interest rate throughout the repayment tenure remains the same, providing more stability to you on your monthly EMI’s.
Floating interest rate is also known as variable interest rate and EMI’s can fluctuate based on market trends set by benchmarks like RBI’s repo rates. The fixed initial cost is usually lower than fixed interest rate but can increase unpredictably over the years, as per market fluctuations.
Hybrid interest rate is a combination of fixed interest rate and floating interest rate. How this works is, the EMIs being at a fixed rate initially before transitioning into floating rates. People opt for this option as it offers the best of both worlds, the stability of fixed EMIs at the start followed by the potential of rate reduction in the future, if the market declines.
Capped interest rates are a modified version of floating interest rate, where tweaks are made so the lender can set a maximum cap limit. This means your EMI may increase or decrease as per market trends but it will never go above the pre agreed money slab.
We at JSB Group understand the challenges and struggles of navigating the dynamic Mumbai real estate and the complexities involved with homebuying. Especially for first time homebuyers, understanding home loans in 2025 and exploring the multiple payment options and choosing the right one can feel overwhelming and that’s why we have implemented the Builder Subsection Scheme, designed to give first time homebuyers an upper edge in their homebuying journey.
Whether you are looking for a 1 BHK flat in Vasai or planning to buy a spacious 2 BHK in Borivali, JSB’s builder subvention scheme can make that dream into a reality. Under the subvention scheme, we partner up with leading banks in the financial sector and offer competitive interest rates and flexible payment topics, making it easier for you to buy a home.
The Builder Subvention Scheme is a modern financing solution where homebuyers are expected to pay a small upfront amount, usually 5% or 10% of the total value to book a property, after which on your behalf, the builder pays the EMI’s to the bank until your home is ready. This scheme is ideal for those buying under construction properties and wanting to evade the hassle of paying both rent as well as EMI’s at the same time.
However, it is important to read all terms related documents carefully and confirm the duration and the specific details of the scheme with the builder to ensure timely EMIs and avoid troubles.
In a city like Mumbai, where real estate continues to evolve and property prices continue to rise, being educated about home loans in 2025 and how to navigate them has never been any more important than it is today. Right from understanding the types of loans to knowing the interest rates, to evaluating the payment options, every thing counts and being aware about the same will not just save time and money but provide peace of mind as well.
The introduction of modern solutions like the Builder Subvention Scheme have proved to be game changer especially for first time homebuyers and investors that are designed to reduce financial pressure on the buyer while their home is being built. At JSB Group, we believe that owning a home should be a milestone and not a financial mishap, that’s why all our properties offer thoughtful payment options, in partnerships with trusted banks so you can buy with confidence and stress free.
Whether you are looking for under constructions properties or dreaming of owning a ready to move in flat in the rapidly developing prime areas of Borivali, Vasai, Nalasopara, Virar, and beyond, JSB Group has your back and with unvarying dedication for our customers we ensure your homebuying journey is not just smooth but backed by experts and insights.