Housing loan eligibility is primarily dependent on the income and repayment capacity of the individuals. There are other factors that determine the eligibility of home loans such as age, financial position, credit history, credit score, other financial obligations etc.
Home Loan Eligibility
Home loan eligibility is defined as a set of criteria basis which a financial institution assesses the creditworthiness of a customer to avail and repay a particular loan amount. Home loan eligibility depends on criteria such as age, financial position, credit history, credit score, other financial obligations etc.
For e.g. If a person is 30 years old and has a gross monthly salary of Rs. 30,000, he can avail a loan of Rs. 20.49 lakh at an interest rate of 6.90% for a tenure of 30 years provided he has no other existing financial obligations such as a personal loan or car loan etc.
How is Home Loan eligibility calculated?
Housing loan eligibility is primarily dependent on the income and repayment capacity of the individual(s).There are other factors that determine the eligibility of home loans such as age, financial position, credit history, credit score, other financial obligations etc.
Home Loan Eligibility Criteria
- Present Age and Remaining Working Years: The age of the applicant plays a major role in determining home loan eligibility. The maximum loan term is generally capped at 30 years.
- Age Limit for Salaried Individuals: 21 to 65 years .
- Age Limit for Self-Employed Individuals: 21 to 65 years.
- Minimum Salary: ₹10,000 p.m.
- Minimum business income: ₹2 lac p.a.
- Maximum Loan Term: 30 years.
- Financial Position: The present and the future income of applicant(s) has a significant impact on determining the loan amount.
- Past and Present Credit History and Credit Score: A clean repayment record is considered positive.
- Other Financial Obligations: Existing liabilities such as a car loan, credit card debt, etc.
How to enhance Home Loan eligibility?
The eligibility for home loans can be enhanced by
- Adding an earning family member as co-applicant.
- Availing a structured repayment plan.
- Ensuring a steady income flow, regular savings and investments.
- Furnishing details of your regular additional income sources.
- Keeping a record of your variable salary components.
- Taking actions to rectify errors (if any) in your credit score.
- Repaying ongoing loans and short terms debts.
How to use Eligibility Calculator?
Eligibility Calculator facilitates checking eligibility for housing loans online.
- Gross Income (Monthly) in ₹: Input gross monthly income. NRI should input net income.
- Loan Tenure (In Years): Input the desired loan term for which you wish to avail the loan. A longer tenure helps in enhancing the eligibility.