Home Loan Eligibility

Home loan eligibility is an analysis of the borrower’s loan payback ability. The bank ponders various factors for assessing whether the borrower can afford and pay back the loan on time.

Factors That Decide Home Loan Eligibility

Factors that decide the housing loan eligibility of a borrower are as follows:

1. Income or Salary – You must be capable of giving valid evidence of your earnings for being eligible to borrow a home loan. You can be a self-employed professional, a salaried employee, or a business entrepreneur.
2. Age – Salaried employees’ age should be between 23 and 62 years for qualifying for the loan and self-employed professionals should age between 25 and 70 for being eligible.
3. Employment – To decide your housing loan eligibility, you must prove your employment. You need to provide some documents like salary slips, offer letters, and monthly income statements. Etc. These documents will evaluate the borrower’s reputation and decide the interest rate and loan amount.
4. CIBIL Score – This is a 3-digit value that indicates a person’s creditworthiness. A minimum rating of 750 is needed on a scale of 300-900 for being eligible for the home loan.
5. LTV Ratio and Property Value – If the market value of the property is high, the scope of getting a loan amount becomes higher. Usually, you need to give at least 10% of the property’s value as a down payment, and the remaining 90% will be financed by the bank. This helps you get a home loan quicker.

How is Home Loan Eligibility Calculated?

You can easily calculate your home loan eligibility before applying for the loan. Using the home loan eligibility calculator available on the bank website, you can decide your eligibility. Enter some basic details like your monthly expenditure, earnings, age, the value of the property you want to purchase, and other loans’ EMIs.

After submitting your basic details, click on enter and the home loan eligibility calculator will compute the maximum amount of loan you can borrow. So, you can apply for a housing loan online.

Top 5 Banks Home Loan Eligibility:

1. SBI Home Loan Eligibility

   Being the largest mortgage provider in India, SBI Home Loans have helped more than 30 Lakh families fulfill their dreams of possessing a house successfully. SBI Home Loans are applicable for buying an under-construction property, buying a readymade property, construction of a home, buying pre-owned houses, house renovation, repair, or extension.

   SBI Home Loan Eligibility Criteria

   • Maximum Age – 70 years
   • Minimum Age – 18 years
   • Nationality – Indian
   • Loan Tenure – Up to 30 years

2. HDFC Home Loan Eligibility

   HDFC provides different home loan products. You can use an HDFC home loan for buying a house, construction of a home, improvement or extension of a property.

   HDFC Home Loan Eligibility Criteria

   For Primary Applicants

   • Should be between 18 and 65 years.
   • Should be an Indian resident.
   • Can be self-employed or salaried.

   For Co-Applicants

   • Should not be co-owners of the house or property
   • Must be family members.

   For Self-Employed Professionals

   • Self-employed professionals like engineers, doctors, consultants, CAs, company secretaries, and architects are eligible for HDFC home loans.

   For Self-Employed Non-Professionals

   • Self-employed non-professionals like contractors, commission agents, and traders are eligible for HDFC home loans.

3. Axis Bank Home Loan Eligibility

   Axis Bank provides flexible and cost-effective home loans that are available with low rates of interest, zero prepayment costs, flexible payback, and fast loan processing that makes your dream of buying a home fulfilled.

   Axis Bank Home Loan Eligibility Criteria

   Axis Bank provides a variety of schemes to meet the housing loan needs of different client sections.

   For Salaried Applicants

   • Maximum age can be 60 years or retirement status, whichever comes sooner during the loan maturity.
   • Minimum age must be over 21 years during loan processing.
   • Must have a permanent government or private job.

   For Self-Employed Applicants

   • Maximum age must be 65 years during loan maturity.
   • Minimum age must be more than 21 years during loan processing.
   • A person filing ITR is eligible for the Axis Bank housing loan.

   For Professionals

   • Maximum age must be 65 years during loan maturity.
   • Minimum age must be more than 21 years during loan processing.
   • Professionals like management consultants, CAs, company secretaries, doctors, engineers, architects, and dentists can borrow an Axis Bank home loan.

4. ICICI Home Loan Eligibility

   You can borrow ICICI home loans at the lowest rates of interest. In terms of home loan disbursals, ICICI is the fourth largest bank in India.

   ICICI Home Loan Eligibility Criteria

   ICICI home loan eligibility depends on the following factors:

   • Employment – Based on the home loan scheme, both self-employed and salaried professionals are eligible for the ICICI home loan. Business or job stability is also important for deciding ICICI home loan eligibility.
   • Present Age – The applicant’s age helps the lending agencies decide the loan payback period. Generally, they try to limit the home loan repayment period to the retirement age of the applicant.
   • Financial Obligations – Present financial obligations of the applicants reflect their loan payback ability. Borrowing another loan with the current one grows risks.
   • Income – The earnings through business or job decides whether or not the applicant can pay back the amount timely. The applicant should have a regular and adequate income source.

5. LIC Home Loan Eligibility

   LICHFL provides many home loan products to pensioners, self-employed and salaried professionals. The housing finance agency provides home loans for home improvement, property purchase, house purchase, or house construction.

   LIC Home Loan Eligibility Criteria

   • Age – As applicable
   • Borrower Profile – PIOs/ NRIs/ Indian residents.
   • Type of Employment – Self-employed or Salaried.

How to Improve Your Housing Loan Eligibility

Here are 4 main ways to enhance your housing loan eligibility:

1. Enhance Your Credit/CIBIL Score
2. Choose a longer loan payback period
3. Add a co-applicant
4. Have an extra earning source.

Now check your home loan eligibility criteria with the organization you are applying for and avail a feature-rich housing loan for financing your purchase of the property.