Buying or building a house is a dream for most Indians. But between checking property papers and dealing with EMIs, one big question always creates stress:“Will my home loan get approved?” If you have been struggling with home loan approval or just want to get it right the first time, don’t worry, we have got your back!
We reached out to the experts at BigMudra, a trusted name in digital finance, to understand what really makes a difference when applying for house loans. In this blog, we’ll break it down for you in simple terms, so you can boost your chances of home loan approval and get the keys to your dream home faster!
Why Home Loan Approval Is a Big Deal
Let’s be honest. Banks don’t just hand out loans like festival sweets. They are picky. And it makes sense, they are lending you lakhs or even crores of rupees.
The process is full of checks: credit score, income, documents, property type, builder credibility, and what not! One small mistake, and your loan might get rejected, even if you are eligible on paper.
So, how do you increase your chances? Let’s find out from the experts.
Step-by-Step Tips to Get Easy Home Loan Approval
1. Keep Your Documents Ready (Before You Even Apply)
Most loan delays or rejections happen due to incomplete paperwork. BigMudra experts recommend creating a “loan folder” before even starting the process.
Here’s what to keep:
- Aadhaar and PAN Card
- Last 6 months’ bank statements
- Salary slips or income proof
- Property documents (if selected)
- Income Tax Returns (last 2-3 years if self-employed)
Pro Tip: Scan and store these online too, it speeds up online applications.
2. Maintain a Good Credit Score (750+ is Safe)
Your credit score is like your financial report card. A score above 750 shows that you’re reliable. Anything below 650? Red flag!
How to improve it?
- Pay your EMIs and credit card bills on time.
- Avoid multiple loan applications at once.
- Keep credit card utilization under 30%.
According to CIBIL, 80% of home loan approvals in India go to people with credit scores above 750.
3. Show Stable Income and Employment
Banks want to be sure you can repay the loan on time. So they look for:
- Minimum 2 years of continuous job history
- Steady monthly income (above ₹30,000–₹50,000 depending on location)
- For self-employed: regular business income, verified through ITRs
BigMudra says: “Don’t switch jobs during the loan process, it can cause approval delays!”
Read More: First-Time Home Loan Interest Rates Guide
4. Choose the Right Loan Amount
You might want a ₹1 crore house, but that doesn’t mean you will get ₹1 crore loan.
Banks usually fund 75–90% of the property value. You must arrange the remaining as down payment. Also, your monthly EMIs should not be more than 40–50% of your net monthly income.
Use BigMudra’s Home Loan Eligibility Calculator to get an idea.
Apply for Home Loan Pre-Approval
Want to look confident in front of property agents and builders? Go for home loan pre approval.
It means the bank checks your income and documents beforehand and tells you how much loan you are eligible for, even before you finalise the property.
Advantages:
- Faster processing when you finalize a home
- Better negotiation power
- Confidence boost!
BigMudra offers instant online pre-approval for eligible users.
Which Home Loan Is Right for You?
Did you know there are different types of house loans available in India? Let’s simplify them:
- Regular Home Loan: For buying a ready-to-move-in flat or house. This is the most common type.
- Home Improvement Loans: Planning to renovate your existing home? These loans help cover repair, painting, plumbing, or even kitchen upgrades. BigMudra suggests applying during festive seasons when offers are high.
- Construction Loan: Want to build your dream home on a plot you already own? Go for a construction loan. These are released in stages, as construction progresses. Keep your architect’s plan and estimate ready for faster approval.
Best Home Loan Rates in India (2025 Update)
Everyone wants to save on EMIs. So here’s a quick look at the best home loan rates being offered in India right now:
| Bank/NBFC | Interest Rate (p.a.) |
| SBI | 8.40% – 9.15% |
| HDFC Ltd | 8.50% – 9.40% |
| ICICI Bank | 8.75% – 9.50% |
| Bajaj Housing Finance | 8.45% – 9.20% |
| Axis Bank | 8.60% – 9.25% |
Note: Interest rates vary based on credit score and loan amount. Always compare before finalizing. Use BigMudra’s Home Loan Interest Rate Comparison Tool to get the best deal!
Fixed vs Floating Interest Rates
When it comes to home loan interest rates, there are two types:
Fixed Rate
- EMI stays the same
- Good for peace of mind
- Usually 0.5–1% higher than floating
Floating Rate
- Changes with market conditions
- Lower starting rate
- Can increase or decrease over time
Most Indian borrowers now prefer floating, especially if RBI keeps the repo rate stable.
Common Mistakes That Delay Loan Approval
Here are some things to avoid, as suggested by BigMudra experts:
- Inaccurate Information on application form
- Submitting expired documents
- Not disclosing existing loans or credit cards
- Making large cash deposits without explanation
- Poor repayment history
Even a small mistake can lead to loan rejection, which affects your credit score and future eligibility.
Real Talk: How BigMudra Helped Me Get My Home Loan
Let’s hear it from Priya, a 32-year-old teacher from Pune:
“I was nervous about applying for a home loan. I didn’t even know what documents to give. BigMudra’s advisor walked me through everything, got me a great deal on interest rate, and I got pre-approved in 2 days! Thank you, BigMudra!”
Thousands of first-time homebuyers across India are now using platforms like BigMudra to get guidance and better offers.
Go Digital: Use Online Tools for Easy Processing
Digital lending platforms are making things much easier. With BigMudra, you can:
- Check your eligibility instantly
- Apply online with minimal documents
- Compare home loan rates across 30+ banks
- Track your application status live
- Talk to loan advisors on WhatsApp!
Going digital means less paperwork, less tension, and faster disbursal.
Your Home Loan Checklist
Here’s a quick recap to make your home loan journey smooth:
- Keep all documents ready
- Maintain a credit score above 750
- Don’t change jobs during loan process
- Choose a realistic loan amount
- Apply for home loan pre approval
- Compare best home loan rates before choosing
- Avoid mistakes in your application
- Use BigMudra for expert help and faster processing
Ready to Begin Your Home Buying Journey?
Whether you are buying your first flat, building your own home, or renovating an old house, the right home loan can help turn your dreams into reality.
But don’t walk alone on this journey. Take expert help from trusted platforms like BigMudra. They simplify the process, guide you at every step, and help you get the lowest home loan interest rates available.
So why wait?
- Visit BigMudra.com
- Check your eligibility
- Get expert help
- Lock in the best home loan deal today!
