About Home Loan Eligibility
Home loans are easily accessible financing options in India when it comes to property buying. Borrowers can avail funds of up to 80% of the property’s current market value.
With us, receive adequate financial assistance in the form of Home Loan for up to Rs. 3.5 Crore, and invest in the purchase or construction of your residential property. It comes with a plethora of benefits to aid you in getting your dream home easily.
What is Home Loan Eligibility?
Every borrower needs to meet the eligibility criteria required to qualify for a home loan. This ensures that he/she can repay the loan amount effortlessly without defaulting.
Failing to meet the eligibility criteria may lead to rejection of the loan application, leaving a negative mark on the individual’s credit profile. So, ensure to complete the processing faster and smoothly by fulfilling the required eligibility criteria.
We brings easy-to-meet eligibility criteria, making the Home Loan more accessible. Below is a chart with details.
|Home Loan Eligibility Criteria|
|Age Limit of Salaried Individuals||23 to 62|
|Age Limit of Self-Employed Individuals||25 to 70|
|Required CIBIL Score for Home Loan||Minimum 750|
|Work experience of Salaried Applicants||Minimum 3 Years|
|Business Continuity||Minimum 5 Years|
|Minimum Salary||Rs. 25,000|
|Nationality||Indian, Residing within the Country|
Salaried applicants can avail up to Rs. 3.5 Crore as Home Loan while self-employed individuals can apply up to Rs. 5 Crore. Know the complete Housing Loan eligibility criteria and documents required for home loan before applying.
Home Loan Eligibility Based on Salary
One of the eligibility criteria that determine how much loan you can avail is your net salary (in-hand salary). Your salary is crucial as is helps in forecasting your repayment capabilities.
Your income will determine the loan amount you are eligible for. Lenders will consider your take-home salary, minus certain common deductions such as gratuity, PF, ESI, etc. The take home salary will determine the EMI amount you can afford and thus the total loan amount you can borrow.
For instance, if your take home salary is Rs. 25,000, you can avail as much as Rs.18.64 Lakh as loan to purchase a home worth Rs. 40 Lakh (provided you have no existing financial obligations.) But if your take home is Rs. 50,000, you can avail a loan amount of Rs. 37.28 Lakh for the same property. Subsequently, if your take home is Rs. 75,000 you can increase your eligibility up to a loan amount of Rs. 55.93 Lakh.
|Age||Net monthly income (in Rs.)|
|25 Years||18.64 Lakh||37.28 Lakh||55.93 Lakh|
|30 Years||18.64 Lakh||37.28 Lakh||55.93 Lakh|
|35 Years||18.64 Lakh||37.28 Lakh||55.93 Lakh|
|40 Years||18.64 Lakh||37.28 Lakh||55.93 Lakh|
|45 Years||18.64 Lakh||37.28 Lakh||55.93 Lakh|
|50 Years||18.64 Lakh||37.28 Lakh||55.93 Lakh|
Home Loan Eligibility Based on Age
Age is another determining factor when it comes to loan tenor. The maximum tenor that you can avail is 20 years.
You will be able to avail a longer repayment tenor if you are of a lower age. You can also avail a home loan of higher value provided you have a high income.
Salaried applicants have to be between the ages of 23 and 62 years to apply for a home loan. Self-employed applicants have to be within the age bracket of 25 and 70 years to avail one.
The following table shows the maximum tenor individuals are eligible for based on their age:
|Age||Maximum tenure for salaried applicants||Maximum tenure for self-employed applicants|
|25 Years||30 years||30 years|
|30 Years||30 years||30 years|
|35 Years||30 years||30 years|
|40 Years||30 years||30 years|
|45 Years||25 years||25 years|
|45 Years||20 years||20 years|
What is an Eligibility Calculator for Home Loan?
An easier way to check home loan eligibility is by using an online calculator. Home Loan Eligibility Calculator instantly computes the amount you are eligible to borrow. It helps in better financial planning and reducing the chances of application rejection. This tool also eradicates the hassle of manual calculation completely.
How is Home Loan Eligibility Calculated?
The eligibility calculator functions on a mathematical formula to evaluate the eligible loan amount. It takes into consideration loan tenor, net monthly salary, existing obligations or EMIs, other monthly incomes, etc.
What Factors Determine Home Loan Eligibility?
Several factors determine a borrower’s eligibility for a home loan. A few of the essential ones are as follows:
1. Age Bracket: Self-employed applicants falling within the age bracket of 25 to 70 qualify to apply for the loan. Salaried individuals must age between 23 and 62 years to be eligible.
2. CIBIL Score: CIBIL score is a 3-digit value which signifies the creditworthiness of an individual. On the scale of 300 to 900, 750 is considered as the minimum rating required to qualify for a loan. A healthy CIBIL score for Home Loan can be beneficial to avail attractive features and better interest rates.
3. Occupation: Applicants must either be self-employed (businessman, doctor, chartered accountant and others) or salaried with any private or public sector company or an MNC.
4. Minimum Earnings: This is slab of net income per month based on the location of residing. Applicants must meet the minimum requirements as applicable.
5. LTV and Property Value: Chance of getting a higher loan amount is more if the property’s market value is higher. If you can make a 20% down payment, you can get a home loan faster.
An eligible applicant can enjoy competitive home loan interest rate along with features like part-prepayment, foreclosure, balance transfer facility, etc.
How Can You Enhance Home Loan Eligibility?
- Increasing the tenor makes you more eligible for a higher loan amount as the EMIs reduce. The interest payable, however, increases.
- Pay off your existing debts, including loan EMIs, credit card dues, etc. It brings down your FOIR, making you more eligible for a home loan.
- Apply for a joint home loan with a co-applicant and enhance your eligibility to borrow a higher amount.