Three Pillars of Loan Eligibility
1. FOIR β Fixed Obligation to Income Ratio
FOIR measures what percentage of your income goes towards existing EMIs. Banks allow 40-65% FOIR.
2. LTV β Loan to Value Ratio
For home loans, banks fund 75-90% of property value. The remaining must come from you as down payment.
3. Credit Score
CIBIL score above 750 gets you the best rates. Below 650 makes approval difficult.