Buying a house nowadays has become easier as several financial institutions are providing home loans with flexible tenure. Several financial institutions offer home loans at a competitive interest rate and require minimal documentation.
You can also use a home loan to renovate your home. However, eligibility for a home loan depends on a number of variables, including the amount of your monthly income, your age, credit score, monthly expenses, and your overall ability to repay the debt. You can calculate your home loan eligibility using a home loan eligibility calculator. This will save you both time and effort.
How to Use Home Loan Eligibility Calculator
This tool is available online. You can easily calculate your home loan eligibility by providing your gross income, tenure, rate of interest, and other EMIs (if any).
Eligibility Criteria for Home Loan
Below are the details about the eligibility criteria that you must fulfill in order to obtain a home loan:
|Age Limit||Between 23 to 26 years||Between 25 to 70 years|
|Annual Income||₹10,000 monthly or above||₹2 Lakhs annually or above|
|Work Experience||Minimum 3 years||Minimum 5 years (Consecutively)|
|Type of Residence||Permanent or non-resident Indian (NRI)|
|Required Credit Score||750 or above|
Important Factors Affecting Your Eligibility for a Home Loan
The lender uses your age to estimate the number of years you will have to repay the loan. This is one of the factors that make it challenging for people to lock in a longer payback term time with the lender when they are in an advanced stage of their life. In order to make the house loan EMI repayment process smoother, it is advisable that you apply for a home loan during your years of highest earning potential.
Your income also plays an important role in establishing your eligibility for a home loan. The lender may determine how you will handle your funds for house loan EMIs based on your salary. Hence, you should have a reliable source of income when applying for a home loan because it will improve your overall eligibility.
When reviewing your home loan application, lenders will consider your CIBIL report. It determines your creditworthiness. When you apply for a home loan, the lender pulls a report from the CIBIL database. You have a better chance of approval if you have a CIBIL score of 750 or above. It may also influence the rate of interest on your home loan.
Loan Repayment Tenure
Choosing an extended payment term for your home loan will increase your eligibility. A longer-term reduce your EMI obligations, making them more bearable.
Additional Financial Commitments
Individuals with a debt-to-income ratio of 40:60 are preferred by lenders. Your prospects of being approved for a mortgage are higher if this ratio is low. An excessive number of open credit accounts does not present a favorable picture since it suggests bad credit activity.
Ways to Improve your Home Loan Eligibility
Prospective borrowers and homeowners can increase their chances of getting a mortgage in a number of ways. Some strategies which you may use to increase your ability to obtain a mortgage are listed below:
- Include a relative as a co-applicant.
- Get an organized repayment plan.
- Make sure you have a consistent income and stable finances.
- Describe any extra revenue sources in detail.
- Keep track of the variable elements of your pay, such as incentives, bonuses, and one-time cash payments, among other things.
- You must file a dispute right once if you discover any mistakes with your CIBIL score. Typically, a credit agency needs between 30 and 45 days to remedy errors.
- A good credit history is essential. You must not have any remaining debt and a good repayment history.
Top Financial Institutions Home Loan Eligibility
|Financial Institution||Loan Value||Max Repayment Tenure||Age||Maximum Loan Value on Property Value|
|Bajaj Housing Finance Limited||₹2.5 Crores||30 years||23 to 70 years||85%|
|ICICI Bank||₹5 Crores||30 years||21 to 65 years||85%|
|PNB Housing Finance Limited||₹15 Crores||30 years||21 to 65 years||85%|
|Home First Finance Company||₹40 Lakhs||20 years||21 to 68 years||90%|
|LIC Housing Finance||₹15 Crores||30 years||21 to 70 years||80%|
|Union Bank of India||₹15 Crores||30 years||18 to 75 years||90%|
|Shubham Housing Finance||₹50 Lakhs||20 years||21 to 65 years||80%|
- What are the prerequisites for a home mortgage?
Below are the eligibility criteria for a home loan:
- You must be a citizen of India.
- You must have at least three years of stable employment.
- You must be between 23 and 62 (may vary across the lender).
- What are the minimum qualifying requirements for an NRI for a home loan?
Non-Resident Indians (NRIs) are considered by lending banks if they earn $3,000 per month (for the United States and other countries) and have been actively working in their profession for a total of two years. However, this condition may differ from lender to lender. Additionally, the age of the candidate must be at least 24 years and no older than 60 (may vary across the lender).
Ayesha completed her Doctor of Philosophy in Biochemistry and started her career as a College Lecturer in 2013. Today, she’s a happy mom of 2 Kids in the field of digital marketing. She loves reading books, spending time with her family, and making delicious food for her husband.
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