Can You Get a Home Loan Above Your Eligibility Limit in India?

When the loan amount you’re eligible for doesn’t quite meet the cost of the property you’ve chosen, it’s natural to ask: Is there a way to secure a Home Loan above the eligibility limit in India? Lenders assess factors like your income, age, liabilities, employment profile, and credit score before deciding on eligibility. While the outcome might feel limiting, there are practical steps to consider if you need a higher loan than what you currently qualify for. 

Let’s explore what eligibility really means and what options you have if you need a higher Home Loan amount than is eligible.  

Why Lenders Assess Eligibility? 

Lenders assess Home Loan eligibility to ensure that the loan they sanction is manageable for the borrower. By evaluating factors such as income, existing obligations, credit history, and the property’s value, they can estimate how comfortably you will be able to repay the EMIs over time. This process protects you from taking on a loan that could stretch your finances too thin.  

How to Improve Your Home Loan Eligibility?

Here are ways you could strengthen your profile: 

• Add a co-applicant – If your spouse, parent, or sibling has a steady income, applying jointly can raise your combined eligibility 
• Clear existing debts - Clearing small loan or credit card EMIs beforehand can increase your repayment capacity 
• Improve your credit score – A score closer 750 or above can improve your eligibility 

Using a Home Loan Eligibility Calculator 

A Home Loan Eligibility Calculator come in handy to estimate the loan amount you can qualify for. Here are the steps to use it: 

1. Select your city of residence from the drop-down list. 
2. Enter or select your date of birth. 
3. Enter your monthly income and obligations.  

The calculator will show the loan amount you can qualify for.  

Role of Property Value in Eligibility

The property that you’re willing to purchase also plays an important role in your eligibility. Lenders usually finance 75–90% of the property’s value, depending on its price bracket and location. This means a higher-value home may increase the sanctioned amount, but only within the lender’s loan-to-value (LTV) norms.  

Can Salary Growth or Future Income Be Considered?

Eligibility today doesn’t necessarily define your future borrowing capacity. Some lenders may factor in career growth and future earning potential, especially for younger applicants. This can work in your favour if you expect consistent salary increments or have a strong career trajectory.  

Risks of Borrowing Loan Amount Beyond Eligibility

While you may want to secure a loan amount higher than your eligibility, it’s important to recognise the risks. EMIs that take up too much of your income could affect your ability to manage daily expenses, savings, and emergencies. You can explore ways to increase your Home Loan amount, but it’s equally important to ensure that the repayments fit comfortably into your lifestyle.