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:
Income:
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.
Reference Read: Aspects that Lender Consider Before Sanctioning your Home Loan
