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How Much Home Loan can you Apply for?

home loan
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Banks have a set of eligibility requirements that applicants must meet before their home loan application is approved. If an applicant meets the eligibility criteria, the bank determines that the borrower will be able to repay the loan on time and will not default. If an applicant does not meet the eligibility requirements, the bank will reject their application, negatively impacting the user’s credit profile. A loan application refusal not only has a negative impact on your credit profile, but it also lowers your overall credit score. If you have a low credit score, you will find it more difficult to obtain a home loan in the future. Repeated loan rejections make you appear credit-hungry to lenders, lowering your overall credit score.

The amount of money you can borrow from the bank in the form of a home loan is also determined by the bank, which considers factors such as your KYC information, income, previous loans, age, employment status, and credit score. When applying for a home loan, your monthly income is important because it determines the maximum loan amount you can be approved for based on your income. As a home loan, the majority of banks will lend up to 85 percent of the property’s value. The remaining 20% would have to be paid in cash as a down payment.

Eligibility Criteria of Home Loan

Your home loan eligibility is an important factor in determining the loan amount that will be disbursed. Home loans are typically approved for approximately 80% of the total property value. The borrower must pay the remainder of the loan as a down payment on the home he wishes to purchase. However, the maximum house loan amount for a salaried employee is INR 3.5 crores. The maximum house loan limit for self-employed candidates is set at INR 5 crores. The home loan eligibility criteria for all the major banks of the country is shown in the table below:

Age Limit (Salaried Individuals)23 Years to 62 Years
Age Limit (Self-Employed)25 Years to 70 Years
CIBIL score750 or above
Work Experience for Salaried IndividualsMin. 3 Years of Work Experience
Business ContinuityMin. 5 Years of Stable Business Background
SalaryA Minimum Salary of INR 25,000
Nationality Indian Citizen

Even if you do not meet all of the qualifying criteria, you can still get your home loan application approved. One of the most common methods for receiving approval on a loan application without meeting the eligibility standards is to assign a co-applicant to the entire home loan procedure. When applying for a home loan, you can increase your bank’s trustworthiness by including a co-applicant on the loan in addition to the security you provide. If you have a co-applicant, banks are more likely to trust you. Banks prefer a CIBIL score of at least 750, but they also prefer a clean credit report. If you’ve ever defaulted on a previous loan, it will appear on your credit report, and banks may question your ability to repay the loan. 


It is critical to consider both the loan amount and the loan term carefully. As a result, it’s a good idea to check your maximum loan eligibility with a home loan eligibility calculator and adjust your spending accordingly. Make a quick comparison of the benefits offered by various banks before applying for a house loan to the best of your ability. Moreover, it is important to check your CIBIL score before applying for a home loan. Having a low CIBIL Score can result in loan rejection. Therefore, you can follow the steps on how to improve CIBIL score before applying for a home loan in order to avoid rejection. By doing so, you will also be ensuring that your loan application will be approved rather than rejected at affordable interest rates.

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