DHFL Home Loan Eligibility

The DHFL (Dewan Housing Finance Corporation Limited) is dedicated to providing its customers the best finance facilities nationwide. It is one of the leading home financing institutions in the country. The DHFL was established in the year 1984.

With over 146 service centers and 181 branches, DHFL makes sure that the dreams of their customers come true by providing them loans for purchasing homes.

DHFL has been making many efforts to provide the best customer services and introduce newer and better products that are beneficial to its customers. The DHFL helps lower and medium income group to fulfill their dream of buying a new house.

The Home Loan can be availed from DHFL by following the basic norms of the company. DHFL Home Loan provides a minimum loan amount of 1 Lakh and the maximum loan of 5 Crores. DHFL offers up to 90% of the market value of the house, which includes registration fees, and stamp duty as well. In order to increase the loan amount, one can add a co-applicant in the loan process. This is because the income of the co-applicant is also clubbed while considering the loan application.

Any salaried individual, self-employed profession and self-employed non-professional/businessperson who is an Indian resident under the age group of 21 years to 65 years (70 for self-employed) is eligible for a Home Loan. The eligibility criteria may change as per the chosen Home Loan scheme.

• The Home Loan eligibility at DHFL is calculated on the basis of your age, income, existing loan obligations, repayment capacity, and property's value.
• The DHFL Home Loan eligibility can be increased by adding the income of another family member by adding them as co-applicant.

DHFL Home Loan Eligibility Based on Age

Age: The age is a very important factor that determines the loan eligibility and also the repayment capacity of an individual. You are eligible for a higher loan amount if your age is lower. That is because more time will be available to you to repay the loan amount. The minimum age necessary to apply for the Home Loan at DHFL is 21 years. The DHFL provides Home Loan for the maximum period of 30 years. The borrower's age should not exceed more than 65 years for salaried borrowers and 70 years for self-employed individuals. Below mentioned is the maximum loan tenure that one is eligible for as per the age criteria:

DHFL Home Loan Eligibility Based on Salary

 Net Income: The net monthly income after deducting the PF, ESI, gratuity, etc. plays a very important role in determining your Home Loan eligibility. The capacity of an individual to pay the EMI considering the current living expenses and other obligations is judged on the basis of the net take-home salary.

For example, if the salary of an applicant is 25,000 and the value of the house he wishes to buy is 40 Lakhs, then the loan amount that he will be eligible for (with an assumption that there are no other additional EMIs) would be 25.99 Lakhs to 41.50 Lakhs depending on the age of the applicant. Similarly, if the salary is 75,000, then he might be eligible for a loan amount of 51.98 Lakhs to 83 Lakhs for the same property.

Look at the table below considering the age criteria and rate of interest offered by DHFL.

An applicant can increase Home Loan eligibility by repaying the current short-term loans.

Nature of Employment: DHFL will also check the nature of the employment of the applicant while considering the loan application. It will check whether the applicant is a salaried individual or a self-employed person. This helps to know the income stability and job security. The minimum job stability of more than 2 years is required for the salaried persons and 5 years for self-employed people.

DHFL Home Loan Eligibility Based on the Value of the Property

Value of Property:  The entire property will not be financed by DHFL. The Home Loan amount at DHFL will depend on the market value of the property too. Refer below-mentioned details to study the same:

Co-applicant: The Home Loan applicant can increase the repayment capacity by having a co-applicant. The co-applicant must have limited obligations, good income, and good CIBIL record as well.

Property Documents: The applicant must take care that all the legal documents required by DHFL are up to the mark and cleared by the legal team.

DHFL Home Loan Eligibility Based on Minimum CIBIL Score

• CIBIL Score: The CIBIL score records your credit behavior and the track record of all the past payments made including the Credit Card bills, previous loans, and other obligations. It is one of the important parameters used to know about the past credit behavior of the borrower and plays an important role in defining the eligibility of the applicant to get the Home Loan from DHFL. A comprehensive study of the entire CIBIL report is done while considering the Home Loan application. The higher the credit score the higher are the chances that the loan application will be approved by DHFL and vice versa. The minimum credit score of 650 and above is must to be eligible for the Home Loan from DHFL. DHFL does not provide the loan to the applicants having a low credit score as it shows the credit indiscipline and bad finance management by the applicant.

Factors affecting your credit score are:

• Late payments: The late payments will have a negative impact on the overall credit score. The chances of getting your loan application approved by DHFL are less if you have made delays in payment of your existing or any past loans.
• The high number of unsecured loans:The perfect balance of the secured and unsecured loan is a must to achieve a high credit score. More unsecured loans indicate finance stress and may reduce your credit score considerably.
• Usage of credit limit:The usage of your Credit Card also plays an important role in determining your credit score. Exceeding your Credit Card limit and often withdrawals can have a negative effect on your credit score. CIBIL considers your Credit Card bill payment history as well while preparing the credits report.
• Multiple loan applications: Applying at multiple banks for a Home Loan can also negatively affect your CIBIL score. If your Home Loan application is rejected at DHFL, it is recommended to improve your creditworthiness and then apply again.

DHFL Housing Loan Eligibility Based on FOIR

One of the most important parameters that are considered by DHFL while approving a Home Loan application is Fixed Obligation to Income Ratio (FOIR). It will consider all the current fixed obligations to estimate your Home Loan eligibility. The minimum FOIR of 0.65 is required at DHFL to be eligible for a Home Loan. The FOIR can also be calculated with the help of Home Loan calculator before applying for the Home Loan. This will help you to know the Home Loan eligibility and prepare for the same.

Here is the list of documents required to apply for DHFL Home Loan:

• High loan amount: The Home Loan amount that an applicant can avail is minimum 1 Lakh and maximum 5 Crores. One can increase the Home Loan amount by adding a co-applicant while applying for the Home Loan at DHFL.
• Fees: The applicant must pay the processing fees of 5,000 to 20,000 depending on the Home Loan amount. The amount does not include taxes and GST. The self-employed individuals must pay the processing fees 1.5% of the loan amount plus applicable GST.
• Amount usage: The Home Loan can be received by DHFL for the purchase of a house under construction, a ready possession house, plot, home extension/renovation/repair.
• Flexible tenure: The Home Loan repayment duration is generally from 1 year to 30 years. The Home Loan cannot be extended beyond the retirement age which is 65 years for salaried individuals and 70 years for self-employed applicants.
• Interest rates: The Retail Prime Lending Rate is used by DHFL to reduce the interest rate on the Home Loan. The interest rates are subject to change depending on the market condition. The current interest rate for DHFL Home Loan starts at 9.75% p.a.
• Tax benefits on Home Loan: The deduction of 2 Lakhs is allowed under section 24(B) of the Income Tax Act. This amount is deducted on the interest paid by the borrower. The borrower also gets a deduction of 1.5 Lakhs from the principal amount of Home Loan as per the section 80(C) of the Income Tax Act.
• Co-applicant: It is possible to add a co-applicant to increase the Home Loan eligibility and enhance your borrowing limits. The co-applicant's credit history and income will also be considered if you apply for a joint Home Loan.
• Repayment: The individual also has the freedom to repay the loan amount with the postdated cheques or through online ECS (Electronic Clearance Service) system.