If you are planning to take a home loan, it is vital to understand all the home loan eligibility criteria that may affect your ability to get a loan. While most banks have similar parameters to decide housing loan eligibility it is best to understand home loan criteria and prepare in advance before applying to ensure a smooth process later.
Buying/owning a house is a dream for most people across the globe. Irrespective of your background and financial status, purchasing a home of your own is not impossible with the help of a home loan. However, there are several schemes that banks and financial institutes offer in India to help the citizens construct or renovate their dream homes.
Home loans make the task easier for you by easing financial decision making and providing you with the necessary and timely monetary support.
Every bank has different policies that come with different home loan eligibility criteria. The criteria may vary from one bank to the other regarding your age, income details, credit history, and further details. Make sure you properly check all the details regarding the loan before you apply for it.
Also Read - Home Loan Tax Benefits
Calculating monthly instalments before taking any kind of loan is extremely important. When it comes to home loans, repaying the massive amounts gets tricky for most people. Without a proper financial strategy, you will not be able to plan your finances well.
Make sure you calculate home loan eligibility beforehand to avoid any financial troubles during your repayment tenure.
The housing loan eligibility differs from one bank to the other based on age, income, credit history, and other factors. Therefore, the best way to calculate your monthly instalments beforehand is to use an online home loan EMI calculator before you apply for a loan.
To check your home loan criteria, visit the official website of your preferred bank and select the details correctly.
Also Read - Tax Benefit on Second Home Loan
The housing loan criteria differ from one financial institute to the other financial institutes and banks. Leading banks that offer home loans to the citizens of the country include HDFC Bank, SBI Bank, Axis Bank, ICICI Bank, Bank of Baroda, Punjab National Bank, Bajaj Finserv, Yes Bank, IDFC First Bank, Canara Bank, IndusInd, IDBI Bank, LIC, to name a few.
Based on your preferences, go for the scheme that you think will fit your budget properly.
Your loan eligibility for home loan directly determines whether or not you are eligible to apply for home loans. Go through the chart to understand and analyse the different eligibility criteria offered by the leading banks in India at the contemporary time.
|Bank Names||Loan percentage (Max) on the total property value||Loan amounts for maximum offered tenures||Age|
|State bank of India||90%||Up to 7 crores for a tenure of 30 years||18- 70 years|
|Bank of Baroda||90%||Up to 7 crores for a maximum tenure of 30 years||21 years- 60 years|
|HDFC Bank||90%||5 crores cor maximum tenure of 30 years||24 years- 60 years|
|Axis Bank||90%||2 crores for 30 years||24 years- 60 years|
|Citibank||80%||5 crores for around 25 years||23 years- 60 years|
|ICICI Bank||90%||7 crores for 30 years||21 years- 60 years|
|LIC Housing Finance||80%||15 crores for 30 years||21 years- 60 years|
|Kotak Bank||80%||5 crores for 20 years||21 years- 60 years|
|IDFC First Bank||85%||10 crores for 30 years||21 years- 60 years|
|Yes Bank||90%||5 crores for 25 years||21 years- 60 years|
|Syndicate Bank||90%||5 crores for 30 years||21 years- 60 years|
|Reliance Capital||80%||100 crores for 20 years||21 years- 60 years|
These are some of the leading banks and financial institutes that offer home loans at low-interest rates that help customers construct, renovate, extend, and fulfil other property desires at ease.
Check your preferred bank’s home loan eligibility criteria before you apply for a home loan. If the interest rate seems high for your affordability, make sure you check other banks and the offered home loan schemes to pick the right plan for the future.
Also Read - HDFC Bank Home Loan Eligibility
The home loan eligibility criteria affect your abilities as a potential borrower. During the review process of the home loan applications, several factors are considered, such as your credit history, income details, financial background, bank statements, other financial obligations, and other details.
The eligibility to get home loan plays the most crucial part in determining whether or not you are an ideal borrower. The first step is to visit your preferred bank's official website and select all your personal and financial details for further procedures. After you submit the details successfully, wait for a few days for the approval of your loan.
During the review procedure, to check your home loan eligibility, the bank goes through your income proof, income tax amount, provident fund details, special allowances, medical expenses, and your total net income to determine whether the loan request can be approved or not. Your leave travel allowances and medical allowances are excluded from the calculation during the procedure. All other allowances that you do not receive as a part of your salary are cut off during the review procedure.
Home loan interest rates are applied based on your credit history, income details, and other details. Most banks and financial institutes keep the EMI restricted to 40% to 50% of the entire net income of the applicants.
Also Check - SBI Home Loan Eligibility
Both salaried and self-employed people are eligible to apply for home loans in India. Interest rates for all kinds of loans vary from one individual to the other based on their income details and financial backgrounds.
Home loan eligibility for salaried person does not remain the same for self-employed individuals. If you are a salaried individual, your home loan eligibility depends on certain factors in India:
Also Check - ICICI Bank Home Loan Eligibility Criteria
Several factors affect your home loan eligibility that you need to be aware of before applying for a home loan in India.
The most essential factors that affect your home loan application include:
Selected Tenure: Banks are more likely to grant loans to those who select longer tenures. If you select a long tenure of up to 25 years to 30 years, or home loan eligibility improves.
There are several ways that you can follow in order to improve your housing loan eligibility. Some of the most common ways that most people can follow include:
MyMoneyMantra is India’s largest phygital loan distributor. With trust of 70 lakh customers, we assure hassle free access to the best Home Loans up to 10 crore for housing loan borrowers in India. Our service is 100% free. We use latest technology and AI to serve customers across the length & breadth of our diverse country. Check Eligibility & Apply.
Know how good your score is
Get insights on how to improve it
Unlock offers as per your score
Visit your preferred bank's official website and use the online EMI calculator to calculate your monthly instalments by selecting your preferred loan amount. For example, in order to check 50 lakh home loan EMI with a monthly income of 30,000/-, you need to select the loan amount, your preferred tenure, and your income in order to check your monthly instalments. The Loan-to-Value ratio is used to review the risk factors in case of loan disbursals.
You need to have valid identity proof, address proof, and income proof, including your bank statements for the last six months, salary certificates, form 16, property detailed documents, payslips, and other documents that reflect your income details.
The eligibility for a home loan for NRIs differs from one bank to the other. However, on average, those who have a monthly income of at least 40,000 are considered decent borrowers by financial institutes in India. Those who have a credit score of 750 and above are preferred.
Yes. If your current loan amount does not fulfil all your property’s construction and renovation requirements, you can apply for a top-up loan to cover your additional expenses. Many banks also allow you to utilise the top-up loan amount for business or personal purposes.
Under section 80 C of the income tax act, every individual is entitled to receive tax deductions on the entire loan amount. The amount can go up to 1.50 lakh as per the policies.
It can be your life insurance policies or other documents such as your pledge of shares or securities and investments details.