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Lenders typically consider the following factors when determining home loan eligibility:


Banks generally consider your gross monthly income.

The loan amount eligibility is a multiple of your monthly income, typically ranging from 1.5 to 2 times your annual income.

Monthly Obligations:

Existing loans or liabilities, like car loans or personal loans, reduce your eligibility.

Lenders use the FOIR (Fixed Obligation to Income Ratio) to ensure that your monthly obligations don’t exceed a certain percentage of your income.

Credit Score:

A good credit score is crucial. Generally, a score above 750 is considered good.

A higher credit score can positively impact your loan eligibility and interest rates.


Younger applicants may have longer loan tenures and, therefore, may be eligible for higher loan amounts.

Property Value:

The cost of the property also affects your loan eligibility.

Banks may finance 80-90% of the property value, and the rest must be paid as a down payment.

Given a monthly salary of Rs. 3 lakhs, here’s a very rough estimate:

Loan Amount Eligibility: 1.5 to 4 times of annual income.

Annual Income: Rs. 36 lakhs to Rs. 48 lakhs.

Monthly EMI: This depends on the tenure and interest rate. As a ballpark figure, with an assumed interest rate, you can estimate your EMI. Please note that these are general guidelines, and the actual eligibility will depend on the specific policies of the lender. It’s advisable to check with the funding consultant associated with different banks or financial institutions to get a precise understanding of your eligibility. Additionally, it’s essential to consider your financial goals and comfort with the EMI before finalising any loan agreement.

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