What parameters do banks consider when granting a home loan?

Although banks earn tremendous business via loans, but they do not lend to anyone. They have a long application process and within that they have strict parameters in order to lend to someone.

Once your repayment capacity determines how eligibility to apply for a home loan, lenders look for the following factors:

- Your income

- Your age

- Your qualification, which helps them determine whether you will be stable in your jobs or not

- Whether you are an Indian resident or not (the maximum loan limit for an Indian resident differs from that of a non-resident)

- Your spouse's income; the household’s income is taken into consideration when you are applying for a loan together

- Number of people dependent on you; this helps banks understand your repayment capacity better

- Your credit history and payment track record; this helps the lenders gauge how safe or risky it is to lend to you and the chances of you defaulting your EMI payments

- The status of your existing loans; based on how indebted you are to either the same lender or a different lender, banks will take a call on whether to grant you a loan or not.