In order for a bank to approve a housing loan application, applicants must meet a series of eligibility requirements. If the qualifying conditions are met, the borrower will be able to repay the home loan and will not default. If an applicant fails to meet the eligibility requirements, the bank will reject their home loan application, negatively impacting the user’s credit history.
Various banks charge different interest rates on their home loans according to qualifying requirements. The bank determines the interest rate on a home loan application depending on the applicant’s eligibility. The age, income, and CIBIL score of the applicant are all factors in determining whether or not he is eligible for a home loan. Each bank has its own set of standards for qualifying. However, the general eligibility requirements are the same for all of the country’s banks. The factors that affect your qualifying for a house loan are given below.
Home Loan Eligibility Criteria
Various banks may have different eligibility requirements depending on their demands. On the other hand, all banks have the same basic eligibility requirements that an applicant needs to fulfill in order to get approval on their home loan application. To get a house loan, you must meet the bank’s eligibility requirements. The following table summarises the basic eligibility criteria that all applicants must meet in order to be able to apply for a home loan in amy major bank in the country:
|Age Limit (Salaried Individuals)||23 Years to 62 Years|
|Age Limit (Self-Employed)||25 Years to 70 Years|
|CIBIL score||750 or above|
|Work Experience for Salaried Individuals||Min. 3 Years of Work Experience|
|Business Continuity||Min. 5 Years of Stable Business Background|
|Salary||A Minimum Salary of INR 25,000|
Above are the essential prerequisites for receiving a house loan from any major bank in the country. For salaried employees, the maximum home loan limit is INR 3.5 crore, whereas for self-employed individuals, the maximum home loan limit is INR 5 crore.
Tips to Improve Your Home Loan Eligibility
You can boost your chances of acquiring a house loan by doing the following:
- If you have a low CIBIL score then you can make a working family member, such as your spouse, a co-applicant for the loan that you are applying for.
- Contact your lender to check if a structured repayment plan is available.
- Make sure you have a steady stream of income, as well as regular savings and investments.
- Provide details on your frequent alternative sources of income, such as rental income from a separate property, revenue from a firm other than your current one, and so on.
- Maintain a record of variable compensation components such as bonuses, commissions, and overtime.
- Keep an eye on your CIBIL score and make any necessary adjustments to enhance or correct any issues. There can be issues in your credit report and you would not even know it. Such errors can damage your CIBIL score therefore, it is mandatory to check your credit report as well as your CIBIL score.
- Ensure that all outstanding debts and short-term obligations are paid in full.
To check whether you qualify for a house loan, you can use a home loan eligibility calculator. However, your Cibil score (सिबिल स्कोर) plays a major role in determining your home loan eligibility. Banks check your CIBIL score as soon as they receive your home loan application. Moreover, there are a few strategies that you can use to improve your home loan eligibility. Improving your CIBIL score would also result in improving your overall eligibility for a home loan. Apart from that, there are a few strategies that you can employ to increase your home loan eligibility and, as a result, improve your chances of getting approval on your loan application.