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How Do I Check My Home Loan Eligibility Criteria

Home loans help you get into your brand new home or construct one as per your own wish. 

Based on your needs, eligibility and lender’s policies, you can get a significant amount to cover your need of moving into a new abode. You can manage to pay home loan EMI per month and move into a nest you can call your own.  

It is where checking home loan eligibility matters. The eligibility factors are mentioned on the websites of lenders you wish to apply for the housing loan with. 

Other than eligibility factors, it is also vital to know an amount that you can avail of. You can do that using the home loan eligibility calculator. Home loan eligibility calculator is available on a lender’s website and works 24×7. 

The biggest benefit of using home loan eligibility calculator is that it gives you error-free and real-time results. When you use a home loan eligibility calculator, you can be sure of avoiding mistakes made on calculating the eligibility manually.  

Many people are unaware of home loan eligibility conditions. It is where checking it out matters. 

Read on and know about the home loan eligibility conditions in this post!

Home loan eligibility conditions at a glance (Salaried) 

  1. The loan applicant must be employed with a stable salaried income source. 
  2. You should have work expertise of 3 years. 
  3. The loan applicant should be a resident citizen of India. 
  4. Your age should be between 23 and 62 years.  

A quick look at home loan eligibility criteria (Self-employed) 

  1. The loan applicant must have a continuous business vintage of 5 years. 
  2. The applicant needs to be a resident citizen of India. 
  3. Your age range should be between 25 and 70 years. 

Along with home loan eligibility, one also needs to submit a few documents. 

It may vary from lenders to lenders. Let’s take a look at standard home loan documents that you may need to furnish: 

  1. KYC documents proving your identity and address. 
  2. Income proof. (For self-employed applicants, profit and loss statements, TR documents are needed, for Salaried applicants, the latest Salary slips or Form 16 may be required). 
  3. Latest and passport-sized photographs. 
  4. Business existence proof with a vintage not less than 5 years. 
  5. Last 6 months’ account statements. 

Along with these documents, applicants also need to submit proof of property documents. It may include an allotment letter, sale agreement, and payment receipts made to the developer/agent.   

If you are unaware of the exact home loan EMI amount, you can also use the home loan EMI calculator

Once you enter a few housing loan details, the home loan EMI calculator will showcase an exact home loan EMI amount payable. 

What aspects hamper your home loan eligibility?

Your home loan eligibility gets affected because of some indispensable factors. Here’s a quick look: 

  • Applicant’s age 

If your age is more, you may get a lower housing loan amount. It is because you have fewer workable years left. Hence, if you are approved for a bigger amount, you may not repay it on time. Thus, to get a considerable amount, you should apply for a home loan when you are young. 

  • Credit score 

The credit score of an applicant is among the essential eligibility criteria. Lenders check it while processing your loan application. If it is 750 or more, you may get the loan approval faster and at a lower rate. By repaying your existing loan EMIs and other bills on time, you can keep your CIBIL score higher. 

  • Employment status or business stability 

As per the profile of the applicant, lending institutes also see their income stability. Lenders want to see if the applicant has 3+ years of experience (Salaried individuals). For self-employed professionals, a business vintage of 5 years is needed. If someone has a stable income or business stability, the eligibility for a large amount may happen.

  • Debt to income ratio 

A home loan is a long-term obligation. Lenders want to ensure that a prospective applicant is financially stable enough to make timely repayments. If an applicant has many EMIs to settle in a month, he/she may not have funds to pay another. In other words, if a borrower has a higher debt to income ratio, his/her loan application may not be approved. 

You are now aware of the home loan eligibility conditions and the factors governing them. 

If you wish to get a home loan approval, you need to abide by eligibility conditions.  

Other than a large loan amount, you can also save big if you apply for a home loan

It is because you can even enjoy home loan tax benefits on principal, home loan interest and other payments made. 

One can also transfer their current home loan accounts to a new lender offering a lower rate and pay reduced EMIs. 

It is possible to know about the cost of transferring the loan account using the home loan balance transfer calculator on a lender’s website.        

 

     

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