Key Factors That Determine Eligibility
Banks and NBFCs use several parameters to assess your home loan eligibility. Understanding each of these helps you plan ahead and maximise your eligible loan amount.
Income and Employment Stability
Your gross monthly income is the primary driver of eligibility. Salaried applicants with stable employment at reputed organisations are viewed more favourably. Self-employed individuals require 2-3 years of IT returns demonstrating consistent income.
Credit Score
A CIBIL score of 750 or above significantly improves your chances of loan approval and securing a competitive interest rate. Scores below 650 can result in rejection or higher interest rates. Check your credit score before applying and address any discrepancies.
Existing Liabilities
Banks assess your Fixed Obligation to Income Ratio (FOIR) — the percentage of your income already committed to EMIs. Most banks prefer total obligations (including the new loan) to not exceed 50-55% of gross income.
Property Value and LTV
Banks typically finance 75-90% of the property value (Loan to Value ratio). The remaining amount must be arranged as a down payment. Ensure you have adequate savings for the down payment, registration costs, and initial maintenance.
Our consultants can connect you with bank partners offering preferential rates for PrimeEdge Realty buyers. Contact us for a free home loan eligibility assessment.