Buying a house is one of the main 5 choices you will at any point take in the course of your life. We say this not on the grounds that it includes truckload of cash yet there is a lot more factors that need your consideration like vicinity of the new house towards your work environment, your kids’ school, clinical offices and so forth.
After calculating all of these parameters, you can zero in on a location that suits everyone and then begin with the home loan process. But before you could apply you must find out if you are eligible for a home loan or no.
Did you know that eligibility is the first most important step in the loan process? Yes without being eligible enough, you cannot get to apply for a home loan. Home loan eligibility criteria has common parameters across all banks and Non-Banking Financial Companies (NBFCs). This eligibility depends primarily on your income history, credit profile and existing relationship with the bank. To get a clear picture, we have listed down the eligibility requirements needed for a home loan. Although this might not be the entire list of requirements as each bank has their own criteria. You can use this list as reference and accordingly be ready.
Eligibility Factors For Home Loan:
Age - In order to be eligible for a home loan, you need to be minimum 18 years old and to a maximum of 60 years. For self employed professionals, this age can be pushed to 65 years.
Income - Usually Banks will provide you with up to 60 times of your net pay or EMIs offered up to 50% of net income as the loan amount. Means if you have a monthly net income of 25,000 then you can get 15 lakhs as the loan amount.
Type of employment - You must be either of Salaried, Self Employed Business, Self Employed Professional to apply for a home loan.
Employment History - You need to be in your current profession or business for minimum 12 months and have a job history spanning minimum 24 months.
Credit History - You need to have a good credit history and also a credit score which is termed good as per the Banks. In most cases a score upwards of 750 gives you good leverage.
Property - When assessing home loan eligibility, lenders visit the property and examine its physical condition, building specifications and market value to decide on the loan amount they could offer for the property. As per RBI’s guidelines, the maximum amount a lender can offer on a housing loan cannot exceed 90% of the property’s value. This implies that you will have to pay a certain amount as a down payment to buy a home. Contributing more towards down payment helps reduce the loan amount and the loan-to-value ratio, thereby, increasing overall home loan eligibility.
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