Housing Loan Credit Policy & Eligibility Rules
Understand housing loan credit policy: LTV limits, FOIR, minimum income and CIBIL score requirements used by banks and NBFCs.
How lenders evaluate applications
Lenders evaluate home loan applications using credit policy parameters such as Loan to Value (LTV), Fixed Obligation to Income Ratio (FOIR), minimum income, CIBIL score and employment type.
Eligibility is typically assessed on the primary applicant; some lenders allow co-applicants to improve FOIR or loan amount.
Property type, location and valuation also affect the maximum loan amount and LTV cap.
Eligibility at a glance
| Parameter | Typical Requirement |
|---|---|
| Minimum Income | Varies by lender; often ₹15,000–₹25,000/month |
| Minimum CIBIL Score | Usually 650+ (some lenders 700+) |
| FOIR limit | Typically 50–60% of net income |
| Maximum loan tenure | Up to 30 years |
| Employment type | Salaried, self-employed (ITR/profit & loss) |
Policy rules
Key parameters used in housing loan underwriting.
LTV (Loan to Value)
Maximum LTV is often 80–90% of property value; lower for high-value or non-salaried. Regulator cap may apply.
FOIR
EMI of proposed loan plus existing obligations as a percentage of net monthly income. Usually capped at 50–60%.
Income requirements
- Minimum net income as per lender policy.
- Income proof: salary slips, Form 16, ITR, bank statements.
Credit score rules
CIBIL/Experian score used for pricing and approval. Lower score may mean higher rate or rejection.
Example eligibility scenario
Sample borrower
Example inputs
- Income: ₹60,000
- Property value: ₹45L
- Loan amount: ₹35L
Result
Eligible (subject to FOIR and other checks)
LTV = 35/45 ≈ 78%, within typical 80% cap. FOIR depends on existing EMIs and proposed tenure; verify with lender.
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