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Maximum Home Loan Limit in India

by Dale Philip
home loan

Before their home loan application is approve, applicants must meet a set of eligibility requirements establish by banks. If an applicant meets the eligibility requirements, the bank determines that the borrower will repay the loan on time and will not default. If an applicant fails to meet the eligibility requirements, the bank will reject their application, which will have a negative impact on the user’s credit profile. A loan application rejection not only harms your credit profile, but it also lowers your overall credit score. A low credit score will make it more difficult to obtain a home loan in the future. Loan rejections on a regular basis make you appear credit-hungry to lenders, lowering your overall credit score.

The amount of money you can borrow from the bank as a home loan is also determine by the bank, which takes into account factors such as your KYC information, income, previous loans, age, employment status, and credit score. Your monthly income is important when applying for a home loan because it determines the maximum loan amount you can be approve for base on your income. The majority of banks will lend up to 85 percent of the property’s value as a home loan.

As a down payment, the remaining 20% would have to be paid in cash. Your eligibility for a home loan is an important factor in determining the loan amount that will be disbursed. Home loans are typically approved for about 80% of the total property value. The remainder of the loan acts as a down payment on the home that the borrower wishes to purchase. The maximum house loan amount for a salary employee, however, is INR 3.5 crores. The maximum loan amount for self-employ candidates is INR 5 crores. 


It is critical to carefully consider both the loan amount and the loan term. As a result, it’s a good idea to use a home loan eligibility calculator to determine your maximum loan eligibility. Doing so you can adjust your spending accordingly. Before applying for a house loan, compare the benefits offer by various banks to the best of your ability. Furthermore, before applying for a housing loan, you should check your CIBIL score. A low CIBIL Score can lead to loan rejection. As a result, you can avoid rejection by following the steps on how to improve your CIBIL score before applying for a housing loan.