Quick ways to know if you are eligible to get a home loan .

Eligible For Home Loans

Eligible For Home Loans

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 In 2022

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?

Final Tips

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 getting 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.