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Indusind Bank Home Loan Eligibility

It is just a few steps away to check IndusInd Bank Home Loan Eligibility. Share your profile and loan details on Home Loan Eligibility Calculator and you can instantly access loan amount and EMI eligibility. At IndusInd Bank Home Loan eligibility criteria are transparent. The applicant’s age can range from 21 to 60 years, with minimum of one year of experience in current organisation and of one year stay (rented) at the current residence respectively. Check more details here. 

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About IndusInd Bank

IndusInd Bank is a new generation private-owned bank in India. It was established in 1994 in Mumbai. Currently, the bank has expanded to most states and cities across India and has also set up representative branches overseas. The bank offers various financial services to its customers.

IndusInd Bank Home Loan

Many of us harbor a dream of having a self-owned house. A self-owned house is considered by many to be the symbol of financial stability. A self-owned house also has many other benefits. Sadly, at the current house rates, it can be difficult to find ago for a property purchase with all the money ready. Home loans were devised to tackle this issue. Home loans provide people with the facility of being able to purchase their dream houses with convenient monthly payments, so that people don't have to burden themselves.

IndusInd Bank Home loan eligibility criteria

IndusInd bank provides a lot of home loan products for its customers. The first step for a home loan application process is to make sure that you satisfy the eligibility criteria. Most banks have similar eligibility criteria based on income, age, job etc.

Below are the eligibility criteria for home loan of IndusInd bank:

  • The borrower should be an Indian resident, NRI (Non-Residential Indian) or PIO (Person of Indian Origin)
  • The applicant must be either a self-employed individual or a salaried employee
  • Home loan can be applied for purchase of property, plot of land, reconstruction or renovation or house etc.
  • The borrower's age must be between 21 - 70 years

Features of IndusInd Bank Home Loan

IndusInd Bank provides a wide range of home loan products for all kinds of purposes to suit the applicant's need. Home loans are availed not just for purchase of a property, but they can also be applied for construction of a house, purchase of a plot of land, extension of existing property etc. The bank offers different packages for different purposes and the rate of interest and tenure can change according to the purpose of loan, income, age group, credit score etc. Please find some basic features of IndusInd Bank home loan below.

Purpose

Property purchase

Renovation of property

Construction of new property

Loan amountThe max loan amount offered by IndusInd bank is up to 10 Cr 
TenureThe max tenure offered by IndusInd bank for repayment of the home loan is 30 years
Minimum age criteriaThe applicant should be minimum 21 years of age
Maximum age criteriaThe maximum age of the applicant can be 70 years
Income eligibilityMust have regular monthly income and should show 3 months' salary slip and 6 months bank statement
Interest RateStarts from 8.95%.
Processing feeUp to 2% of loan amount
Pre-payment chargesNil in case of floating home loans

Additional Reading: Check Free Cibil Score

Documents required for IndusInd bank Home loan

You will have to submit certain required document proofs with your application form for the home loan application. Below are the documents commonly asked for a home loan.

  • Filled application form.

Identity proof documents:

  • Aadhar Card
  • PAN Card
  • Voter ID Card
  • International passport
  • Telephone Bill
  • Electricity Bill

Proof of Income:

  • 3 months of salary statement (for salaried employees).
  • Business registration certificate/Proof of business
  • 6 months of bank statement(with regular income)
  • 3 years of profit/loss statement
  • 3 years of Income Tax returns(for self-employed individuals)

Other documents:

  • Processing fee cheque
  • 2 passport sized photographs
  • Property agreement
  • Any other property-related documents

Factors affecting IndusInd bank Home loan eligibility

Home loans are high tenure and high amount loans. For this reason, the bank is extra careful while approving home loan applications. Hence, just satisfying the basic eligibility criteria are not enough to get your home loan sanctioned. There are a lot more factors that can influence home loan eligibility. Some of them are mentioned below.

Credit score:

A credit score is a measure of an individual's credit behaviour. Credit score is calculated on the basis of the repayment history of the user. It measures the credit or loan availed by the user and check for any default in the repayments as well. The bank will always ask for a credit score as they can get an overview of your credibility having your credit score. IndusInd Bank requires a good credit score to provide a home loan.

Credit score can be calculated by most financial professionals or third party vendors like MyMoneyMantra.

Downpayment:

The bank does not provide the amount for the entire property. It will only provide up to 80-90% of the property value as home loan. The rest of the money has to be arranged by the applicant themselves. This amount js called downpayment and will also be the amount that will be used to book the property. The amount of downpayment that the individual can provide can be a factor for home loan eligibility as a higher downpayment can mean a lower home loan amount. A lower home loan amount increases your chances of availing the home loan.

Property hassles:

Home loans are secured loans and the bank will usually ask for the concerned property to be held as mortgage against the loan disbursed. This is why the bank will verify the property thoroughly before granting you the loan. The bank asks for the original property deeds with your home loan application and if they find any flaws with the property, the loan application will be in trouble. You will have to make sure that the property is free of any legal issues or hassles and is not involved in any disputes.

Low disposable income:

Even if your income lies within the bank's eligibility criteria, it does not mean that your loan will be sanctioned easily. The bank will check all your liabilities and dependents to figure out how much you are left with after satisfying them. Your expendable income is what will determine your actual eligibility and will be used for determining the amount and tenure for EMI instalment. You need to ensure that you have enough disposable income left over after taking care of your liabilities.

Missed payments:

Once you apply for a home loan application, your entire financial history will be scanned by the bank. They will be verifying all your investment, credits, payments etc. If they find that you missed any instalment or payment, it will be a negative factor in your home loan application. A missed credit payment will also lower your credit score, which will further impact your home loan application.

Tips to increase IndusInd bank Home loan Eligibility

There is still a possibility that your home loan is not approved even if you satisfy all the eligibility criteria. The final decision is taken by the bank after much deliberation. Below are some tips you can follow to increase your eligibility criteria.

Get a complete financial report:

It is imperative that you get a complete financial assessment done to get a complete overview of your financial standing and liabilities. A financial assessment will be able to give you an idea of your disposable income so you can figure out what tenure-rate of Interest you should go for to be able to comfortably repay the home loan. A complete financial report will also showcase any errors or is reporting in your credit reports and score.

You can get a financial assessment done from most financial professionals and third-party vendors like MyMoneyMantra.

Go for higher tenure:

Your EMI amount depends on your home loan amount and tenure. So, if you go for a higher tenure, your EMI amount will decrease (in spite of a possible increase in Rate of Interest). A lower EMI amount can develop a higher trust factor in your repayment ability to the bank. A high tenure also means more time to repay the loan. This is also a positive factor in your home loan application.

Joint application:

If your immediate family members are also working professionals, you can add them to your application as a co-applicant. As co-applicants, the income of both of you is considered as the total income. Also, the repayment responsibility lies with both of you. This reduces the burden of repayment from your end and also gives the bank a little more confidence in the loan repayment. Moreover, co-applicants are both eligible to avail tax benefits on the home loan.

Take care of existing credit:

If you already have prior credits/loans that you haven't paid off yet, your chances of getting a home loan can be reduced. This is because you are already under the burden of one EMI instalment, the bank will hesitate to give you another one in case you are unable to repay. It's prudent to pay off your previous loans if possible or try to increase their tenure so that the EMI amount decreases.

Why should I use a Home Loan EMI calculator?

EMI (Equated Monthly Instalment) is a term given to the amount of money that the lender will receive from the borrower as repayment against the loan that was availed. The EMI amount is calculated by the bank using your total amount, rate of interest and tenure. Generally, a higher tenure means a lower EMI, (as the total amount gets divided by the tenure). Getting a fair idea of your EMI amount will be very useful to confirm the tenure and amount that would be most comfortable for you. The formula for EMI calculation is given below.

EMI amount is calculated as shown below:

E = P.r.(1+r)^n/((1+r)^n-1)

Where E = EMI amount

            P = Principal loan amount

            R = rate of interest

            N = Tenure in months

From the equation above, you can that EMI calculation is a long and tedious process, even more so, if you are not into mathematics. This is why many companies have started offering free EMI calculators that will help their clients with the EMI calculation process. These EMI calculators are designed to give you fast output and calculate EMI based on the rate of interest, tenure and loan amount that you will enter. You may also try with different tenures to get an idea of EMI amounts that will be most suitable for you.

Benefits of the EMI calculator:

  • Calculate the loan tenure - Interest ratio most feasible for you long term.
  • Easy and quick way to calculate EMI amount without doing heavy calculations yourself
  • User-friendly service which does not require special devices
  • Quick response for EMI calculation
  • Freedom to choose the plan as per the EMI amount you are most comfortable with

Additional Reading: How to Increase Credit Score?

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Indusind Bank Home Loan Eligibility FAQs

Is the loan amount disbursed completely at once?

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The home loan disbursal depends upon a lot of factors like the purpose, the property value etc. The loan amount can be disbursed in one instalment if the property is for purchase. However, in case the purpose is construction or renovation, the loan amount might be disbursed in instalments. It depends on the individual's agreement with the seller as well.

What are the types of Home loans that IndusInd bank provides?

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IndusInd bank provides the below types of home loans:

  • IndusInd Home Finance Home Loan: Loan offered for the purchase/construction of property
  • IndusInd Home Extension Loan: Loan offered for individuals wishing to extend their houses by adding further rooms, balconies etc.
  • IndusInd Home Improvement Loan: Loan offered for the renovation/ repair work for the applicant's property
  • IndusInd Top-up loan: Loan offered for individuals who already have a home loan with IndusInd bank

What do you mean by foreclosure of loan?

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Home loans encourage people to be able to purchase their dream house. For this reason, the bank offers the borrower with the option of paying the complete loan amount before the tenure ends. This is called pre-payment. The loan is then considered closed even before the completion of its tenure. This is called foreclosure of loan.

Can I apply for my home loan online?

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Yes, most banks nowadays have come up online and electronic services which offer you the convenience of banking from your home. Unlike the older days, where we had to go stand in line at the bank, loan applications go through much faster and easier now. Banks also provide the facility if a customer service agent coming to your house to help you with the home loan application.

Is it possible to sell the property if I haven?t paid off the loan yet?

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Yes, it is entirely possible for you to sell your property before off your home loan. In this case, depending on how the buyer decides to pay for your loan, the loan will either be foreclosed or the loan amount will be transferred to the buyer. 

Can I still apply for a home loan if I am not a salaried employee?

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A certain proof of income is mandatory to apply for a home loan. If you are not a salaried employee, you will have to be at least self-employed or own a business of some kind. You will have to submit corresponding document proof claiming a steady monthly income stream.

Who can be co-applicants for my home loan?

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Only immediate family members like spouse, siblings and parents of the applicant are allowed to be co-applicants for a home loan. The co-applicants also have to follow all the eligibility criteria mentioned.