When determining the maximum loan amount a bank can offer, several factors come into play that can affect an applicant’s eligibility. Here are some key considerations:

Credit Score (CIBIL Score)

A strong credit score and good repayment history significantly improve the chances of obtaining a higher loan amount. While many banks do approve home loans for applicants with lower scores, a score of 750 or above is generally considered ideal for securing the best loan terms.

Joint Home Loan

Applying for a joint home loan with a co-borrower, such as a spouse who has a good credit score, can significantly increase your eligibility. It not only enhances your borrowing capacity but also helps share the repayment responsibility, making it easier to manage the loan.

Longer Loan Tenure

Opting for a longer loan tenure can lower the monthly EMI amount, making it more affordable. Although a longer repayment period may result in higher total interest payments, it can improve eligibility by reducing the EMI-to-income ratio.

Clearing Existing Debts

Before applying for a home loan, consider clearing any existing debts or ongoing EMIs. Reducing outstanding liabilities can boost your eligibility by lowering your debt-to-income ratio, making you more attractive to lenders.

Higher Down Payment

Banks usually finance 75% to 90% of the property's value, with the remaining amount being the down payment made by the applicant. Making a higher down payment not only reduces the loan amount needed but also results in a lower interest burden, making the EMI more manageable.