How does the location of the property affect my eligibility for a home loan?

The location of the property you plan to purchase is an important factor that affects your home loan eligibility and loan amount approved.

Financial institutions do have some preferences when it comes to property location while sanctioning home loans.

They may offer higher loan amounts for properties situated within municipal limits of major metro cities as opposed to remote rural areas.

However, each loan provider will have its own location preferences based on associated risks. If a property in a Tier 2 or 3 city meets the loan provider’s criteria, it may get you a higher LTV.

The key is to check the detailed lending policy regarding location eligibility to understand how it may impact your specific home loan application. It is recommended that you have an open discussion with the loan provider.