Mortgage Approval: What You Need to Know to Get Approved in India

When you apply for a mortgage approval, the process lenders use to decide if you qualify for a home loan. Also known as home loan approval, it’s not just about how much you earn—it’s about how reliably you’ve handled money in the past. Banks in India don’t just look at your salary. They check your credit score, a three-digit number that shows how likely you are to repay a loan. Also known as CIBIL score, it’s one of the first things a lender checks before even looking at your paperwork. If your score is below 700, you’re likely to face delays, higher interest rates, or outright rejection—even if you have a steady job.

That’s why home loan eligibility, the set of rules banks use to decide if you qualify for a loan matters more than you think. It’s not just your income. It’s your existing debts, your job stability, how much you can put down as a down payment, the upfront cash you pay before the bank lends you the rest. Also known as initial payment, it’s often 10% to 20% of the property’s price. The bigger your down payment, the less risky you look to the lender—and the better your terms. Many people think they need 20% down, but some schemes in India allow as little as 5% for first-time buyers. Still, if you’re putting down less than 15%, expect to pay extra for insurance or face stricter income checks.

Lenders also care about your debt-to-income ratio. If you’re already paying ₹20,000 a month in EMIs for a car or personal loan, and your salary is ₹60,000, they’ll see you as stretched thin—even if you’re not late on payments. A good rule of thumb: your total monthly debt, including your new home loan EMI, shouldn’t exceed 50% of your take-home pay. And don’t forget the documents. Banks want your salary slips for the last 6 months, bank statements showing consistent deposits, ID proof, address proof, and sometimes even your income tax returns. Missing one form? That’s a delay. Getting it wrong? That’s a rejection.

What most people don’t realize is that mortgage approval isn’t a one-time event. It’s a process that starts months before you even pick a house. Paying off small debts, avoiding new credit cards, keeping your bank balances steady, and checking your credit report for errors can make the difference between approval and denial. And if you’re self-employed? You’ll need more paperwork—usually two years of ITRs and business bank statements. It’s tougher, but not impossible.

Below, you’ll find real stories and clear guides from people who’ve been through it. Some got approved with low credit scores by fixing their debt first. Others waited six months to save a bigger down payment and saved thousands in interest. These aren’t theories—they’re proven steps taken by Indians just like you. Whether you’re buying your first home or upgrading, what you’ll read here isn’t guesswork. It’s what actually works in India’s home loan system today.