Eligibility

It’s the most important aspect of the home loan. There are two types of eligibility at play & lower of the two is what you get.

Let’s look at the details of each one of them

1) Property Eligibility OR Loan to Value (LTV):  This is governed by the RBI guidelines & the following are the Loan to Property Value (LTV’s) across loan amounts.

 PV – Property Value excluding registration charges

2) Financial Eligibility: This is based on your total income, total liabilities & your age. Click Here to use our calculator to calculate your eligibility.

Factors that can increase your financial eligibility

Variable pay, existing rental income if it’s declared in your IT returns, future rental income if you already own a house, any other income again if it’s declared in your IT returns.

Factors that can decrease your financial eligibility

a) Tenure Restriction on account of age, the property type (Site/Flat) and your resident status (Resident/NRI).

b) Guarantor - If you have been one in someone else’s loan.

c) Co-Applicant in an existing loan - Even if you are not contributing towards the repayment of this loan some banks may factor it as a liability. However, this can be proven otherwise by producing the bank statement of the applicant reflecting the EMI payments being made. Some banks will be ready to issue a letter to the Co-applicant stating that only the applicant’s income is considered for the loan.