IDBI Bank Home Loan Eligibility

The Industrial Development Bank of India is a very popular privately-owned bank in India. It was established in 1964 with a goal of aiding the development of Indian Industries. Since then, the bank has grown to provide a wide range of financial services and products to its customers.

A self-owned house is the dream of many Indians and to make this dream a reality, IDBI Bank offers its customers to avail a Home Loan. IDBI Bank offers a wide range of Home Loan services, depending on the individual needs. Customers have the facility of getting a Home Loan package customised entirely as per their needs and purposes. IDBI Bank promises its customers very quick and completely transparent application process. IDBI Bank can help the customers through the process and help them with the ideal deal.

Also Check: Best Home Loan for Salaried Person before applying for a loan.

Below are some eligibility criteria to avail a Home Loan in IDBI Bank:

• The borrower can either be an Indian National or a Non Residential Indian (NRI)
• The borrower can be self-employed as well as salaried
• The purpose of the loan should be property-related matters. Look at the next section for more details.
• The borrower's age must be between 22-70 years for salaried individuals and 25-65 years for self-employed professionals and business owners.

Additional Info: Also check Rs. 35 Lakh Home Loan EMI and Apply Online.

Below listed are some of the features of IDBI Bank Home Loans:

You have to submit certain documents along with your Home Loan application in order to get your loan sanctioned off easily.

• Duly filled application form with passport sized photographs and processing fee cheque
• Identity & residential proof:
  • Aadhar Card
  • PAN Card
  • Voter ID Card
  • Passport
  • Telephone Bill
  • Electricity Bill
• Financial documents:
  • 3 months of salary slips, Form 16/ITR, 6 months bank statements - For salaried employees
  • Certificate for educational qualifications, 3 years ITR (for self and business), 3 years P&L and Balance Sheet, 6 months bank statements - For self-employed professionals.
  • Business existence proof, business profile, 3 years ITR, 3 years P&L and Balance Sheet, 6 months bank statements - For self-employed non-professionals.

Additional Info: Also check Documents Required For Home Loan

Even if the individual satisfies the eligibility criteria mentioned above, the loan application can still be rejected due to any of the following reasons:

• Credit score:

Your credit score is very important for the Home Loan application to be accepted. A credit history contains all details of your credit card bill usage, repayments, other financial investments, etc. It can showcase your financial strength and denote just how well you are able to manage your finances. A lower credit score might have a negative effect on your loan application.

• Prior existing debts:

Home Loans are generally of a high amount and tenure and require continuous and on-time repayment from the borrowers. In case the borrower has other existing debts that they haven't paid off yet, the Home Loan application has a possibility of being rejected. This is possible even in case you have been signed as a guarantor for someone else or you are a joint applicant for your previous loan.

• Low disposable salary:

Even if you fall under the eligible income category of the Home Loan application, your loan will be rejected if you have a lower disposable income, i.e., you have other liabilities to take care of. Your other expenses will lower your overall expendable salary and will have a negative impact on your loan application.

• Newly joined employee:

Financial stability is very important for a Home Loan application. That's why, if you have recently joined your office, your loan application might possibly be rejected. Moreover, the bank will require at least 3-6 months of salary, so it's prudent to wait for at least 6 months after joining your job to apply for a Home Loan.

• Employer not approved:

Banks usually have a pre-approved list of employers/companies that are considered safe per them. They require that the borrower must be working with the employers mentioned in the list. In case, the borrower's employer isn't pre-approved, it's possible that your Home Loan will be rejected. It's better to talk to a bank or third party to find out if your employer is eligible or not.

• Legal issues:

You will be submitting all original property documents to the bank while applying for your Home Loan. In case they find any kind of issue with the documents, or they find out that the property is under some dispute or there are any other legal issues, there is a chance that your plan application will be rejected. It is prudent to get all your documents verified before applying for a Home Loan.

• Previous mispayments:

If the borrower has any previous late or missed payments from prior liabilities, it will come under heavy scrutiny. It will also have a negative impact on your credit score which will then negatively impact your Home Loan application. Even a single missed payment can have quite an impact on the credit score.

Additional Info: Also check CIBIL Score for Home Loan

Getting a Home Loan application accepted is the decision of the bank and has many factors affecting it as mentioned above. There is a possibility of your loan application getting rejected even if you follow all the eligibility criteria.

Below are some tips you can follow to make sure your loan application gets approval easily:

• Have a clear assessment of your financial obligations:

Before applying for a Home Loan, it is wise to get a clear assessment of your finances. You should verify that all your pending dues have been cleared off and are in order. You should calculate how much money is left after fulfilling all of your obligations. Even in case, you have any existing loans or debts remaining, you need to make sure that you have enough income per month even with the existing EMIs. The repayment capability is crucial for Home Loan sanctions, so, this is very important step of the loan application process.

• Get a proper credit report:

As soon as you apply for a Home Loan, your entire credit history will come under strong scrutiny by the bank officials. It is wise to get an accurate credit history report of your finances yourself and get it evaluated. It will give you a proper evaluation of your credit history. You should also ensure you have the CIBIL score ready. Your credit score should be good without any late repayments or default payments. Also, if you have an existing loan, it is recommended for you to repay the same before applying for a new one.

• Verify the property you are going for:

Home Loans are secured loans and they require collateral. In most cases, the property is considered as mortgage for the loan amount. The property is also thoroughly verified by the bank for any issues. Make sure that all of the property documents are in order and that property is currently not under any legal dispute or issue.

• Apply jointly:

Having a co-applicant highly increases your chances of getting a Home Loan sanctioned. This is because the loan amount is divided amongst the borrowers and the repayment responsibility lies on both the individuals. It is crucial that you find a co-borrower with an excellent credit score so it adds up well to your own. It is also helpful if your co-borrower has no pending dues or loans and has an excellent credit history.

Additional Info: Also check SBI MCLR Rate Today

EMI (equated monthly instalments) is the monthly amount that the borrower has to pay the bank as repayment for the loan amount received. EMI amount depends on the principal amount, the rate of interest, and the tenure. Generally, the rate of interest is higher for higher tenure loans. EMI amount is crucial as this is the amount that you have to pay without fail from your income each month and you need to make that the amount is convenient enough for you to be able to pay long term.

The calculation for a Home Loan EMI can be very complicated. For your convenience, there is EMI Calculator available online to determine easily what kind of EMI you can expect for different tenure and rates. The calculator can help you determine what tenure and interest rate you would find most beneficial for yourself. As Home Loan EMIs have to repaid for a long duration, it is important to apply with a full confidence of repayment.

Additional Info: Also check Rs. 2 Crore Home Loan EMI