How Much Home Loan Can I Get? A Guide for First-Time Borrowers

If you are planning to purchase a home, you may be wondering how much Home Loan you can get. The loan amount sanctioned depends on a range of factors, including your income, age, and financial obligations. Understanding these parameters can help you plan your finances better and improve your chances of securing a higher loan amount. 

Factors That Determine Your Home Loan Eligibility

Lenders assess your eligibility by examining your financial profile and repayment capacity. Here are the key factors considered: 

• Monthly Income: A higher net monthly income typically results in greater loan eligibility. This ensures that you can comfortably repay the loan without straining your finances. 
• Existing Financial Commitments: If you already have other loans or credit card EMIs, your Home Loan eligibility may be reduced. Lenders evaluate your fixed obligation to income ratio (FOIR) to assess repayment capacity. 
• Credit Score: A credit score of 750 or above is considered ideal. A higher score indicates strong creditworthiness and may help you secure a higher loan amount at better terms. 
• Age and Employment: Young salaried professionals or self-employed individuals with stable income and a consistent employment or business track record may secure longer tenures and higher loan amounts. 
• Loan-to-Value (LTV) Ratio: The LTV ratio represents the percentage of the property’s value that the lender agrees to finance.  

Home Loan Eligibility Criteria

If you are a salaried or self-employed applicant looking to apply for a Home Loan with Bajaj Housing Finance, you need to meet the following eligibility criteria:  

**The upper age limit is considered as the age at the time of loan maturity. Additionally, the upper age limit for applicants is subject to change, depending on the property profile. 

Documents Required for a Home Loan Application

To complete your Home Loan application, you will need to submit the following documents***: 

• KYC documents (identity and address proof) 
• PAN Card or Form 60 (mandatory) 
• Latest salary slips or business income documents 
• Income Tax Returns or Form 16 
• Bank account statements for the last 6 months 
• Property documents 
• Passport-sized photographs 

***This is an indicative list. Additional documents may be required at the time of loan processing.  

Tips to Maximise Your Loan Eligibility

If you want to improve your eligibility and secure a higher Home Loan amount, consider these tips: 

• Maintain a healthy credit score by repaying dues on time 
• Reduce existing debt before applying 
• Apply with a financial co-applicant  
• Declare all sources of income, including bonuses or rental income