Owning a home is something many individuals have on their bucket lists. However, it might take years to accumulate the money needed to purchase/construct a house. Thankfully, by opting for a housing loan, you can easily accumulate all the money you need and pay the principal and interest over thirty years.
Lenders evaluate many things, such as LTV Ratio, down payment amount, monthly income, etc., to decide the loan amount. When you apply for a PNB Housing loan, make sure that your loan application fits your loan repayment capacity.
As per the PNB Housing Finance review, the correct loan amount can increase your chances of PNB Housing loan approval. The right loan amount is the one that sponsors house purchase/construction without burdening your finances.
Factors That Impact The PNB Housing Home Loan Amount
There are certain factors that you need to keep in mind to get the desired amount of loan for your dream home. Your income, credit score, and obligation ratio are some of the factors that determine your eligibility.
Here’s all you need to know before you apply for your home loan.
1. Loan to Value Ratio
Commonly regarded as the LTV ratio, the Loan to Value ratio is a lending scale mandated by the Reserve Bank of India.
This policy by RBI decides the amount that the loan company can provide as a home loan, and it generally spans between 75% to 90% of the entire house building cost. Remember that this percentage is not fixed; the ratio will depend on the value of the property and a few other factors.
Here’s a pricing slab to help you get an idea of the amount you’re likely to get as your home loan based on the value of your property:
- Up to INR 30 Lakhs – 90%
- Between INR 30 Lakhs to INR 75 Lakhs – 80%
- Above INR 75 Lakhs – 75%
2. Down Payment Amount
Financial Institutions like PNB Housing disburse a portion of the applicant’s property value as a loan. Afterward, the loan bearer has to arrange money for the remaining amount, also regarded as a down payment.
There are two ways in which a borrower can opt to make their down payment – the first option is using money from savings, and the second is getting an additional loan.
Saving up money for the down payment in advance increases your chance of getting loan approval a lot quicker as it implies the following:
- The applicant is a sensible borrower with prepared liquidity
- The applicant is not hungry for credit and only needs to borrow a moderate and reasonable amount to build or buy their home
3. Repayment Capacity
Lastly, remember that the borrower’s repayment capacity is the most crucial PNB Housing loan amount determinant because a home loan company can only lend the borrower as much as they can repay without delay.
Therefore, ensure a good credit score because this will help the lender evaluate your repayment capacity.
To maximise the capacity of loan repayment, take the following measures:
- Consolidate all your existing debts
- Apply for the loan with a co-applicant
- Maintain a good credit score
- Mention all your additional sources of income in the application
Building your dream home will require much planning, but it’s all worth it in the end. The housing loan amount that you qualify for is going to depend on a few factors, like your income and debt, but your choice depends greatly on the value of the property you’re buying. So to know your PNB Housing loan amount, keep all these things in mind which we mentioned above. By getting a PNB Housing loan, you can ease the process of achieving your dream with low-interest rates, quick disbursal, and customized eligibility. Use the PNB Housing home loan eligibility calculator on the official website and check your eligibility today!