Getting your home loan approved is not as simple other unsecured advances, such as personal loans, car loans etc. Based on various financial institutions that seeking to apply from, they lay numerous pre-requisites and housing loan eligibility parameters that need to be followed.
Although the criterion varies with lenders, the fundamental arrangement is set on similar lines. Therefore, before applying for a home loan, it is essential to know about housing loan eligibility in detail and how to check it to improve your chances of loan approval.
What is home loan eligibility?
To qualify for a housing loan, one needs to meet certain eligibility parameters laid by lenders to ensure that the applicant is credible to repay the loan amount without defaulting. If an individual fails to meet these qualifying parameters, it can lead to loan rejection, leaving a negative mark on his/her credit profile.
In terms of housing loan eligibility, an applicant is categorised into two parts based on their profession: salaried and self-employed. Besides, the applicant’s eligibility is also assessed through various documents that they are supposed to submit to the lender.
Let’s check out some of the general requirements of a housing loan-
- Any salaried or self-employed individuals residing in India can apply for a home loan
- The age limit should be within 23-62 years for salaried individuals, and the self-employed should be 25-70 years.
- Salaried applicants must have a work experience of 3 years in a reputed MNC, public or private organisation. While self-employed should have a business continuity of at least 5 years.
- Applicant must not be a defaulter of any previous loan and maintain a CIBIL score of a minimum of 750.
Besides, collateral property’s value is another crucial home loan eligibility criterion. To approve loan applications, lenders evaluate the property’s age, location, size etc. Subsequently, borrowers must maintain their property and repair them as necessary to obtain a considerable amount.
Apart from meeting the home loan eligibility parameters, individuals are required to submit certain documents that include address proof, KYC documents, income proof, bank account statement etc. Individuals successfully fulfilling the eligibility requirements and submitting necessary documents can avail a sizeable amount against their home loans. However, to ensure a trouble-free loan application, individuals must know about the factors that can affect home loan eligibility and try to implement them to improve their eligibility techniques.
How to check your home loan eligibility?
It is always wise to check home loan eligibility before applying for a home loan as it will provide borrowers with a clear understanding as to whether to obtain a loan from that particular lender or not. Knowing the eligible amount beforehand will allow borrowers to plan their finances efficiently and help in improving the loan approval chances. To find an easier and faster way of getting a home loan, individuals can check their eligibility beforehand with an online calculator.
This housing loan eligibility calculator is an online financial tool that displays the exact amount that one is eligible for. This online tool provides results on the basis of income capacity and repayment. Individuals can check their eligibility by following the steps mentioned below-
- Mention additional income sources
- Input current EMI
- Mention city of residence
- Enter date of birth and monthly salary
- Choose repayment tenor
In the end, select “Check your eligibility” to evaluate your housing loan eligibility.
Now, eligible borrowers can take a look at the pre-approved offers extended by reputed lending institutions on a wide range of secured and unsecured financial products. These offers significantly expedite the loan application process and save time. To check your pre-approved offer, enter your name and contact details.
To sum it up, knowing about housing loan eligibility with the help of an online calculator beforehand will allow borrowers to understand the basics of eligibility and help them find their dream homes.