Shriram Housing Finance Home Loan Eligibility

Your net take-home salary helps lender to decide your loan quantum. The eligible amount is quoted as per your net take-home salary and debt to income ratio stipulated by the lender. Before applying for a Home Loan, you should ensure that the net take-home salary is sufficient to provide for the required Home Loan EMI.

Furthermore the job stability and security are also measured to ensure timely payments of EMIs. The lender will consider employer’s reputation before approving loan application. An applicant who is employed in a Government Organisation/ PSU/ any of the reputed Companies/ MNCs is considered more secure than the one who is employed with a private organisation or is self-employed. Next, the work experience with the present employer is considered for income stability.

The maximum tenure for repayment of the loan is 25 years. While fixing the repayment period, the age of retirement is considered in case the applicant is salaried and the age on the date of maturity of the loan is considered, when the applicant is self-employed. A younger applicant will get a longer repayment period. In longer tenure, EMI will be lower and more affordable.

Loan to Value ratio is also a factor that decides the Home Loan quantum. If the property has a good market value, then the eligible home loan amount also will be proportionately high. The loan quantum will be 75% to 90% of the market value of the property to be pledged for the loan. 

Your entire credit history such as the number of loans & credit cards, types of loans, the repayment pattern & so on, are indicated in the credit report. The timely repayment of the loans and Credit Card dues is one of the important factors affecting your credit score. The discipline in credit repayment will result in a good credit history. You will hence be considered as a low-risk borrower. Low-risk borrowers are preferred by the lenders and thus it will not be difficult to get an approval if the credit score is good. Also, you will enjoy additional privileges like better interest rate, concession in charges, higher loan amount, and so on.

FOIR is Fixed Obligation to Income Ratio i.e. debt to income ratio. A lender will consider FOIR before sanction the loan request. Besides your Income/ Salary the lender will assess existing EMIs, Credit Card bills, and approx monthly expenses as a ratio to your net income. The FOIR should be not be more than 50 %. With higher than this parameter, the loan interest rates and terms will be more stringent. 

Shriram Housing Finance offers a range of housing loan products to help you buy, construct, renovate, and renovate the residential properties. These loans are flexible and customised to suit the borrower’s needs. The types of Home loans offered by Shriram Housing Finance include:

Purchase of Property

Plot Purchase Plus Construction

Self-Construction

House Extension

Balance Transfer with or without Additional Finance

Renovation/ Repair

The eligibility criteria for women applicants are the same as other applicants, except for the concession of 05 basis points.

The co-owners of property for which you are seeking financial assistance can become co-applicants. Although it is not necessary that the co-applicants are co-owners, but the co-applicants should be blood relatives. Usually the loans are co-applied by husband-wife, father-daughter, and mother-son. Max 4 co-applicants can be added.

Key factors that affect Shriram Housing Finance home loan eligibility are:

• Age of the applicant: Before sanction the loan terms, such as loan amount tenure, the lender will assess age of the applicant. The maximum tenure for repayment of the home loan issued by SHFHL is 25 years. A younger applicant will get a longer repayment period.
• Credit Score: Your credit score determines your creditworthiness. With good credit score you become eligible for the best loan terms such as competitive interest rate, concession in charges, higher loan amount, and so on.
• Income: Your net take-home salary is the quotient that will decide your loan quantum. The lender will assess debt to income ratio before approving the loan.
• Property value: The loan amount is approved as a percentage to property value. In most cases, your loan to value will vary from 75% to 85%.
• Employment/ Stability: Furthermore lender will assess reputation of your employer, your industry and continuity of business/job before sanction the loan.