The right customer
- Salaried buyers with 2+ years at a stable employer and a score of 750 or more
- Self-employed buyers with 3 years of ITR showing steady or rising income
- Buyers in projects already approved by major lenders
- Balance-transfer customers paying well above current rates
- Steer away from: buyers whose existing EMIs already take half their income, and properties with incomplete approvals
What lenders look for
- Private and public sector banks want clean salaried files and approved projects, and reward them with the best pricing.
- Housing finance companies are more flexible about income proof, especially for self-employed buyers and resale properties.
- NBFCs and small finance banks fill the gaps: smaller towns, informal income, or thinner credit files, at higher rates.
Documents to collect
- PAN and Aadhaar for all applicants
- Salary slips and Form 16, or ITR with computation for 2–3 years
- 6 months of bank statements
- Sale agreement, title chain, approved plan and builder NOC
- Receipts for any own contribution already paid
Common rejection reasons
- The property is not approved by the lender, or the title chain has a gap
- EMIs, including the new loan, exceed what the lender allows (FOIR)
- Credit report shows recent defaults or many recent enquiries
- Income in ITR does not match the banking pattern
- Age at the end of the tenure crosses the lender's limit
A worked example
Illustrative case
Customer: salaried, ₹1.1 lakh a month take-home, existing car EMI ₹12,000, score 780, buying a ₹60 lakh flat in an approved project.
At a 55 % FOIR the room for a new EMI is about ₹48,500. At 8.75 % over 25 years that supports roughly ₹59 lakh, but the property limit (80 % of ₹60 lakh) caps the loan at ₹48 lakh.
File it with two private banks and one HFC. Illustrative payout at 0.45 % of ₹48 lakh: ₹21,600, paid after disbursal as per the payout policy.