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Key Factors Affecting Your Home Loan Amount Eligibility


As life goes on, we realise what is important to us and what isn't. Getting one's own home is an important goal for most people. And home loans make it much easier for almost anyone to accomplish this dream.

Applying for a home loan can be a challenge. It is, after all, a major long-term commitment; and so many different aspects affect the home loan eligibility of an individual.

Here is an overview of three key factors that play an important role.

1. Role of Co-Applicants:

It is said that sharing a burden makes it easier to carry, and a co-applicant can significantly improve an individual's eligibility to avail of a loan. A co-applicant is a person named by the main applicant as a borrower in the same application.


Having a co-applicant has several benefits to loan eligibility:

  • a. A co-applicant is legally liable to pay in case the principal applicant defaults. This increases the NBFC's confidence and makes them more likely to sanction the loan.
  • b. The income of both applicants is taken into account. The combined income of you and the co-applicant might make it more likely for the institution to sanction the loan.

  • c. If the credit score of the main applicant is slightly lower, a co-applicant with a solid credit score increases the chances.

2 . Pre-existing Debt and its Effects:


Information about your existing loans gives the financial institution a look into your practices. It gives the institution an idea of how much of your income is being directed to pay off debts and bills already. Too much existing commitment may not look good to the institution.

Apart from that, some practices related to your credit that may cause a problem are:

  • 1. Missing EMI payments

  • 2. Repeated late payments

  • 3. Irregular credit card bill payments

You might think that not having any past credit increases the chances of approval, but that is not the case. With no credit history, the institution has no information about your repayment patterns. They can't judge your financial habits, and this makes them more likely to reject a claim.

3 . Documents You Might Need:


If you are applying for a loan with any financial institution, they will need you to submit certain documents to be verified. Most of these are government documents and can easily be applied for through the online portal. These are usually just documents that confirm your identity. Some of the documents you might need include:

  • ◉ PAN (Mandatory)

  • ◉ Voter ID

  • ◉ Passport

  • ◉ Driving Licence

  • ◉ Aadhaar Card

  • ◉ Salary Slip

  • ◉ Form 16/ITR

All of these documents may not be required in every case.


Several factors affect your chance of getting a home loan. These factors include your age, income, credit standing, past debt, etc. What is most important to your eligibility is that you have responsible spending habits

Learn how you can calculate your home loan eligibility with expert help from IIFL Home Loans. You can easily check your home loan amount eligibility using the IIFL Home Loans home loan eligibility calculator. Our range of calculators further includes a salary home loan emi calculator which may help you with future planning.

At IIFL Home Loans, we are always at your service to help you make the loan process easier and bring affordable housing to you. Your dreams are important and to see you realise them is our goal. Visit the IIFL Home Loans website to get more information and start your journey towards completing your dream of owning a home.


  1. 1. What other things affect home loan eligibility?

Factors like the age of the applicant, income stability, property, etc. affect eligibility.

  1. 2. Do I need to have a good credit score for home loan approval?

A credit score is important. But, here at IIFL Home Loans we aim to provide affordable housing to you even if you may be missing a credit history, a credit score or some documents. We are ready to help you through your journey.

  1. 3. Who can be a co-applicant on my home loan?

The preferences for co-applicant may change from institution to institution. Consult your financial institution for the details.

  1. 4. Will my salary affect my EMI?

The EMI (Equated Monthly Instalments) can be adjusted according to your income and preference.