Mastering Home Loan Eligibility: Save Lakhs in Interest
11 min read5 March 2026
Financial Disclaimer
Disclaimer: This information is for educational purposes only. Always consult a certified financial advisor before making any financial decision.
Buying Your Dream Home
Home loan eligibility is the maximum amount an individual is entitled to borrow from a financial institution. In 2026, banks have become more stringent with eligibility due to rising property prices.
Factors Affecting Eligibility
- FOIR (Fixed Obligation to Income Ratio): Banks usually allow 50-60% of your net monthly income for all your EMIs.
- LTV (Loan to Value): Banks will fund only up to 80-90% of the property value. The rest is your down payment.
- Age: Younger borrowers get longer tenures (up to 30 years), which increases eligibility.
Interest Scenario 2026
With the Repo rate at 5.25%, home loan rates are currently hovering around 7.5% for salaried professionals with 800+ CIBIL scores.