(i) Income of applicants:- Clubbing together income of applicant and co-applicants decide their EMI paying capability and the amount of loan which can be sanctioned to them. (ii) Existing Loan:- If the applicant has existing loan then its EMI liability reduces the loan eligibility for new loan being sanctioned. (iii) Market Value of the property:- No bank gives loan amount more than market value of the property for which home loan has been applied. Home loan amount extends from 75% to 90% of market value of the property rest of the money has to be paid by applicant. (iv) Tenure of the Home Loan:- If home loanis applied for lesser tenure than the loan amount will be less and in case of greater loan tenure, the home loan sanctioned will be more.

Fixed rate of interest: – In this case home loan interest rate is fixed and does not change as per the guidelines or instructions of RBI. However, some banks use a clause called ‘Force majeure,’ where the Bank under unforeseen circumstances converts the fixed rate of interest into floating rate. Floating rate of interest: – Under this scheme the rate of interest goes up or down depending upon changes in MCLR.

(i) Income of applicants:- Clubbing together income of applicant and co-applicants decide their EMI paying capability and the amount of loan which can be sanctioned to them. (ii) Existing Loan:- If the applicant has existing loan then its EMI liability reduces the loan eligibility for new loan being sanctioned. (iii) Market Value of the property:- No bank gives loan amount more than market value of the property for which home loan has been applied. Home loan amount extends from 75% to 90% of market value of the property rest of the money has to be paid by applicant. (iv) Tenure of the Home Loan:- If home loanis applied for lesser tenure than the loan amount will be less and in case of greater loan tenure, the home loan sanctioned will be more.

Co- Applicant is essential in case a home loan is applied in private banks whereas it is not essential criterion in case of PSU banks. Co-Applicants can be spouse or blood relatives of either the applicant or co-applicant. Number of co- applicants can be extended up to four in certain cases.