Home loan eligibility criteria have different parameters all around the banks and Non banking financial companies . There are different criteria that make it applicable for each lender to fulfill their requirements . The criteria required to be an eligible candidate for home loan is to ensure that the application procedure is smoother and easier.
However, the eligibility criteria tends to differ depending on the bank and the lenders. Approval is mostly based on the borrower’s income along with credit profile and if they are in a good stead with their existing lender or bank. Now, this article will talk about if you are eligible or fall under that criteria. Please proceed to read the article to understand if you are eligible or how you can be eligible.
What Are The Factors Affect Home Loan Eligibility
Age Limit:
First and foremost factor a lender/ financier considers when one applies for a housing loan. Banking institutions tried to limit the house loan term and the applicant’s age of superannuation. Especially older applicants, who are beyond 40 and find it extremely hard to be eligible for an extended tenure. Single applicants aged 50 and above are denied home loans purely on this basis.
Income:
Categorize this into salaried, professional and self-employed. Whichever category the applicant falls into as a steady and regular source of income is needed. Also , there are fewer risks in borrowing money if the applicant is an earning individual.
Salaried Individual:
If you are serving under any government department or a registered private company, you belong to this group. Most of the banks insist that the applicant should complete at least one year in the present firm at the time of application.
Independent Professionals:
Professionals like doctors, dentists, architects, engineers, management consultants, chartered accountants, freelance workers etc. belong to this section. As bank statements and ITR papers have to be submitted.
Self Employed:
If your own company/ business Or do you have other sources of income like rented properties? Then you come under this category. Also having bank statements and tax-related papers to show that you have certainly applied for a home loan.
Interest rate:
Home loan eligibility is inversely proportional to the rate of interest. But if the rate is more than the eligibility will be less and vice-versa.
Loan Term:
Opt for a longer tenure and make your eligibility improve. EMIs too will be lesser and are manageable. But the problem is ,you will end up paying more interest.
Outstanding Loans:
Indian banks and financial institutions always recommend keeping the EMI to Income Ratio between 50 or 60 percent. Eventually leaving a window for future loans or to pay off existing loans. But any unsettled loans can be a great damper on your eligibility.
CIBIL Report:
Banks now also scrutinize your credit repayment history ,in order to ensure if you are eligible to get the loan.These detailed records are kept regarding credit history relation between you and lenders/ creditors. A negative entrƒy can lower your eligibility criteria.
Also Read: Things You Need To Know Before Taking Out A Home Loan
How Is Home Loan Eligibility Calculated?
| Income | Amount | Deductions | Amount |
| Basic | 32,000 | Income Tax | 3,300 |
| HRA | 900 | Provident Fund | 2,200 |
| Conveyance | 10,000 | ||
| LTA | 9,000 | ||
| Special Allowance | 55,000 | ||
| Medical expenses | 2,000 | ||
| Total | 1,08,900 | Net Income | 1,03,400 |
Minimum Home Loan Eligibility For Top Banks
| Banks | Requirements |
| HDFC Home Loan Eligibility | Age: 18 to 70 years Max loan Tenure: Up to 30 years Loan Amount: Up to Rs.10 crore |
| SBI Home Loan Eligibility | Age: 18 to 70 years Max loan Tenure: Up to 30 years Loan Amount: Decided by the lender |
| Axis Bank Home Loan Eligibility | Age: 21 to 60 years Max loan Tenure: Up to 30 years Loan Amount: Up to Rs.3 crore |
| LIC HFL Home Loan Eligibility | Age: 21 to 60 years Max loan Tenure: Up to 30 years Loan Amount: Rs.1 lakh onwards |
| BoB Home Loan Eligibility | Age: 21 to 70 years Max loan Tenure: Up to 30 years Loan Amount: Up to Rs.10 crore |
| PNB Home Loan Eligibility | Age: 18 to 70 years Max loan Tenure: Up to 30 years Loan Amount: Up to 90% of the market value |
| DHFL Home Loan Eligibility | Age: 18 to 70 years Max loan Tenure: Up to 30 years Loan Amount: Up to 90% of the market value |
| Canara Bank Home Loan Eligibility | Age: 21 to 55 years Max loan Tenure: Up to 30 years Loan Amount: Up to Rs.10 crore |
| IDBI Bank Home Loan Eligibility | Age: 22 to 70 years Max loan Tenure: Up to 30 years Loan Amount: Up to Rs.10 crore |
| Indiabulls Home Loan Eligibility | Age: 21 to 65 years Max loan Tenure: Up to 30 years Loan Amount: Up to Rs.15 crore |
Also Read: How to Find the Best Home Loan Interest Rate?
Conclusion
There are various things to think about especially when it comes down to getting a home loan. However, before making the final decision you have to ensure that you have understood the process and how it will cost you in the long run. Hence, this article informs you about a few of those factors when it comes to get a home loan and understanding what they are can only help you out in the long run. So, it should be easy for you to choose the correct home loan plan according to your criteria and eligibility.
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