As per the basic eligibility for a home loan, you must be a citizen of India and at least 23 years of age when applying for it. Apart from this, lenders put in place a variety of parameters based on which they verify and judge your eligibility for a home loan. These include your age, income, credit history, city of residence, etc. So, in order to get a quick home loan sanction letter on a high amount at nominal interest rates you must meet these home loan eligibility criteria.Take a look at the factors that determine your eligibility for a home loan.
Your credit score
A healthy credit score of 750 and above can directly impact the home loan rates of interest offered to you. Your score considers factors such as your repayment history, how many existing loans and credit card dues you have, and what kind of debt you have borrowed in the past. Thus, a lender can use this number to measure your financial credibility to assess your repayment capacity before approving the loan.
Your existing debt obligations
Numerous debts and loans are not a problem. However, unpaid dues are always a concern for lenders. Also, lenders pay special attention to your repayment pattern. Missing EMIs regularly, making EMI payments after the due date, and varied unpaid dues are a cause of concern for them. So be disciplined with your credit repayment to get a high amount sanction on flexible terms and a nominal interest rate.
Your income
Based on the city you reside in and work in, every lender sets a minimum income criterion. Meet these criteria to get a home loan with ease. For example, you can qualify for a Home Loan sanction of Rs. 5 crore and more on a home loan tenure of 30 years with lenders such as Bajaj Finserv on a minimum salary of Rs. 25,000 per month from cities like Gurugram, Hyderabad, Kolkata, etc. Additionally, you get benefits like a 3-EMI holiday, low-interest top-up loan, repayment flexibility, etc., on your home loan with this NBFC.
Read also: Advantages of NBFC over banks
Your employment status
Just like your income, your employment status is also essential. Being employed with an MNC and a reputed private or public-sector company deems you more reliable as a borrower. Similarly, as a self-employed individual, if you have a stable business income, then lenders are more likely to give you a sanction on flexible terms than someone with an unstable job or business.
Your age
All these previously mentioned home loan eligibility criteria are factored alongside your age. The lender is concerned with how many years you have left as a salaried or working professional. Availing a home loan decades before retirement, during the early years of your career, allows you to get a quick sanction on a sufficient amount. To check your eligibility, you can use the Home Loan Eligibility Calculator on websites of lenders like Bajaj Finserv. Here, you can also see the tentative home loan amount for which you qualify.
Your property details and LTV ratio
The property or home for which you are taking a home loan is also of concern to lenders. It is because your property is the security based on which you get the loan. So, if your property is worth more, you will get a higher loan amount and vice versa. So, choose the right property that has the potential to increase in value to secure substantial funds. Secondly, lenders consider how much you are paying as down payment and how much you need financing. If you have funds for a 20% down payment, you will easily get a home loan. If you want more funds, you may not be able to secure enough or may have to pay a higher home loan rate of interest.
Additional Read: How to reduce home loan interest
Equipped with the knowledge of these factors, check your home loan eligibility. Once you know you qualify for a loan with your chosen lender, you can calculate the affordability of your home loan using the home loan EMI calculator.
Bajaj Finserv brings you pre-approved offers for personal loans, home loans, business loans, and a host of other financial products. Not only does this simplify the process of availing of financing, but also helps you save on time. All you have to do is share a few basic details and check out your pre-approved offer.
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