web analytics

Home loan eligibility

Share This :

If you are thinking of buying a residential property, then one of the questions that are probably foremost on your mind is how to go about arranging the capital required. Most buyers today prefer to get a home loan to finance their property purchase.

getting a home loan
Getting a home loan

What is the eligibility for getting a home loan?

Home loans are offered by most banks and NBFCs as they are considered a relatively secure asset by them. However, there is still the eligibility criterion to meet for you to be able to get that loan.

Capital available with you

To finance your property acquisition, banks expect you to fund 20% of the cost of property through your own funds. The remaining 80% is provided by the bank. This proportion can also change as per individual profile. So the first requirement is funding capacity on your behalf.

getting a home loan

GO TO  Galaxy Royale Ready to Move Apartments

Your Credit Score

Banks determine the risk involved in a home loan case on the basis of applicants credit score. As you must be aware, your credit score is linked to your PAN number and is accessible to financial institutions for risk assessment.

Applicants with high credit score are eligible for a lower interest rate and lesser capital share of the home loan. The capital requirement could be reduced from 20% to 10 % in some cases.

Other factors like age, past payment history and years left for retirement are also considered.

GO TO  Shri Radha Sky Park Apartments


Your Monthly Income

Along with identity documents and PAN number you would be asked for your bank statement and/or IT returns if you are a business person. Your monthly income determines the amount of home loan you would be eligible for.

The maximum amount the Equated Monthly Installments (EMI) can go up to is 50% of your monthly income. This 50% is considered surplus income and EMI and loan amount eligibility calculated on its basis. For example, if your monthly income is Rs 1,00,000/month then your EMI can be a maximum of Rs 50,000/month.

However, in case of an ongoing loan i.e car loan, personal loan your monthly income minus that loan’s EMI is considered as the available monthly income. So 50% of the available monthly income is the maximum EMI limit.

Home loan eligibility 1

Type of Property for which home loan is required

Home loans are available typically for apartments, flats, and villas constructed as part of authority approved projects. Purchase of plots and freehold land are usually not financed by banks. An exception in this would be a house constructed on authority approved society plot which is eligible for financing. Some examples of authority approved projects are given here.

GO TO  Mahagun Mywoods ready to move apartments


Getting a home loan is one of the most preferred ways of financing a property purchase. Share this article with your friends through the social media links given at the end of this article. You can use this free tool to calculate your EMI here.

GO TO  Srishti Villas at Crossings Republik

Share This :

10 thoughts on “Home loan eligibility”

  1. Thanks on your marvelous posting! I seriously enjoyed reading it, you might be a great author.I will always bookmark your blog and will eventually come back sometime soon. I want to encourage you to definitely continue your great job, have a nice day!

  2. Hello there, just became alert to your blog through Google, and found that it is truly informative. I am gonna watch out for brussels. I’ll be grateful if you continue this in future. Lots of people will be benefited from your writing. Cheers!

  3. There are some interesting time limits in this article but I don’t know if I see all of them heart to heart. There’s some validity but I will take hold opinion till I look into it further. Good article , thanks and we want more! Added to FeedBurner as properly

Leave a Comment

WhatsApp chat