Who Qualifies for a Home Loan in India?
Getting a home loan is straightforward once you understand what lenders evaluate. Banks and housing finance companies look at five key dimensions before approving your application.
Income and Repayment Capacity
Your loan eligibility is primarily determined by monthly income. Most lenders allow an EMI that doesn't exceed 40–50% of your net monthly income. If you earn ₹80,000 per month, your maximum eligible EMI is ₹32,000–₹40,000.
Salaried applicants need 3–6 months of salary slips, 2 years of Form 16 or ITR, and stable employment with the same employer for at least 1–2 years.
Self-employed applicants need 2–3 years of audited financials, ITR with computation, and proof of business continuity. Lenders look for consistent income — one good year won't help if the previous year showed a loss.
CIBIL Score Requirements
Your credit score is the second most important factor. Most banks require a minimum CIBIL score of 750 to offer competitive rates. A score between 650–750 may qualify you but at higher interest rates. Below 650 is generally a rejection.
Age and Loan Tenure
Most lenders require you to be between 21 and 65 years old at the time of loan maturity. A 45-year-old can get a maximum tenure of 20 years (to age 65). A 25-year-old gets the full 30 years, resulting in a lower EMI.
Property Type and LTV Ratio
Lenders fund 75–90% of the property's market value (Loan-to-Value ratio). For a ₹1 Cr property, you need ₹10–25 lakh as a down payment. The property must be legally clear with proper title documents and RERA registration for new projects.
How to Maximise Your Eligibility
- Add a co-applicant: Combine your spouse or parent's income to increase eligibility
- Reduce existing debt: Pay off personal loans and credit card outstanding before applying
- Choose a longer tenure: A 30-year tenure gives a lower EMI than 15 years, improving eligibility
- Get pre-qualified first: Taksh Fin checks your eligibility across 50+ lenders and tells you your exact budget before you start house hunting