The housing property an individual buying may be of 85 lakh and adding all other cost and taxes, he/she might need a loan for 1 crore. Even if they wish to avail 100% loan, but no lender will fund complete loan amount. One important factor in home loan is own contribution. Applicant has to bring in certain investment from his/her savings as own contribution for home purchase and rest might be paid by Home loan borrowing. Lenders evaluate applicant’s profile on several dimension to ascertain how much credit can be extended to them.
The loan eligibility in simple terms means how much loan can be extended to applicant by any bank or NBFC. Each lender has their pre-defined rule and qualification set to determine the loan amount. The percentage and computation assign to each factor may vary as per lenders respective internal policies, but the factors accounted by most lenders are common.