Buying a dream home is humongous task due to the increasing real estate prices. However, a home loan comes to the relief to some extent. That said, if you are planning to buy a house using a loan, you must be aware of the home loan eligibility which you have to fulfil:
You should have a stable monthly income to be eligible for the home loans. You can fall under the following categories:
Salaried Individual: A person working in Government, PSU and reputed private companies are eligible. However, they have to provide salary statement and bank account details.
Self Employed: If you are running your own business, then you should provide income tax returns. Then only you will be eligible for a home loan.
Professionals: Professionals such as chartered accountants, doctors, dentists, engineers, architects, company secretary, cost accountants, etc. are eligible for a home loan. Based on your income, you will be provided with a home loan.
- Age Limit: The age of the borrower should fall between 24 years and 60 years and for professionals and self-employed it is up to 65 years.
- Interest: Loan eligibility is higher in case of lower interest rates and vice-versa.
- Tenor: If the loan tenor is longer then you will be provided with a high loan amount.
- Loans Availed: The loans which you are already paying will also be taken into account for your eligibility.
- Credit Score: Banks check for your CIBIL credit score which is based on your credibility in repaying the loans.
- Relationship with the Bank: Last, but not the least, your relationship with your bank as they normally value their old customers.
Thus, if you fulfil all the above criteria, your home loan eligibility is high.