Home Loan Eligibility Calculator

Last Updated : June 14, 2021, 12:52 p.m.

Home Loan Eligibility Criteria of Top Banks

Customers who are planning to apply for a home loan can check the eligibility criteria sought by top banks in India.

Home Loan Eligibility for SBI

The eligibility criteria based on which SBI accepts home loan applicants are as follows:

Apply Home Loan @ 8.65%* Rate

Home Loan Eligibility for HDFC Limited

To apply for the loan at HDFC Ltd , you need to meet the below-mentioned eligibility criteria:

Home Loan Eligibility for LIC Housing Finance

LIC Housing Finance has won the hearts of many by offering them a hassle-free loan. To avail the same, you have to fit into the below eligibility criteria.

Home Loan Eligibility for ICICI Bank

ICICI Bank has set the following criteria for you to meet.

Home Loan Eligibility for Axis Bank

Axis Bank offers home loans at attractive interest rates, lower fees and charges, hence allow you to fulfill your dream without any hassle. To apply for the loan, check the eligibility criteria below.

Home Loan Eligibility for PNB Housing Finance

To apply for PNB Home loan , check the eligibility required below:

Home Loan Eligibility for Bank of Baroda

To apply for Bank of Baroda home loan , you must know that you have to match the eligibility criteria set by the bank. Look at the criteria below:

On What Basis is Your Eligibility for a Home Loan Calculated?

Until now, you have known about the eligibility criteria of the top home loan lenders. When we talk about home loan eligibility, it’s essential to know about the factors that affect this. The two main factors are your monthly income and repayment capacity. Others include the applicant’s age, employment type, credit score, existing obligations, etc. We are providing information about all of them below that you can check.

Your in-hand Income – The most important factor that defines your repayment capacity is your monthly income. The higher your monthly income, the greater space you have for loan repayment, resulting in greater disbursals. That’s why the first thing lenders check before sanctioning the loan amount is the monthly income of an applicant.

Applicant’s Age – The age of an applicant is also an important factor that decides your home loan eligibility. Lenders usually give loan amounts to younger people as such applicants have larger repayment capacity as compared to an old applicant nearing his/her retirement age. Also, home loans are generally for a long duration, that’s why the eligibility of an applicant is higher at a much younger age. The long duration ensures relatively lower EMIs and smooth repayment compared to someone having got a much shorter tenure to service the loan.

Employment Type – The employment type plays a crucial role in determining the eligibility of the particular applicant. Lenders are likely to approve home loan applications for individuals working in an MNC faster than someone employed with a non-listed company. The reason being the repayment capacity of the former applicant is much more than the latter one. The employment type and its reputation can work in your favor while opting for a home loan from any lender. The lender can also offer lower interest rates on your home loan.

Location of your Property – As you get a home loan against your property, its location plays a huge role in your home loan eligibility. The first thing that a lender will check is the place where your property is located. A property in a good location with all the amenities nearby can get you a higher loan amount at lower interest rates as the lender can have lesser credit risk as compared to a loan on property situated in an underdeveloped and isolated location. So, make sure you get a property at a prime location to get the desired loan amount.

Do You Have the Proof of the Last 3 Years ITR Filing?

If you are a self-employed individual, it is important to have the proof of Income Tax Return (ITR) filing so that a lender can estimate about your annual income. This will help the lender in determining your repayment capacity. At the time of loan sanctioning, the lender will ask you to submit ITR-related documents. The lender will go through such documents and decide the loan amount for you.

Is Your Property Ready-to-Move-in or Under-construction or plot?

It is also one of the important factors that affect home loan eligibility. Lenders check if your property is ready-to-move-in or it is under construction or plot. Suppose the property against which you want the loan amount is an under-construction one then the lender releases the loan amount in installments. On the other hand, the loan amount can be disbursed in one installment, if you opt for a home loan to buy a ready-to-move-in property. So, you need to keep this in mind before applying for a home loan.

Do You Have the Map and Registration Papers of the Property or Not?

It is also important that you have all the necessary documents related to your property at your disposal at the time of applying for a home loan. Without all these documents, your loan application will not be processed, and as a result, you will not get the loan amount in your account. So, you need to make sure that the property has all the required documents such as Map, Registration Papers, Sales Deed, etc, before applying for a home loan.

Whether the Property is approved by the Government or not?

If the property for which you want to take the loan has not been approved by the government, it would be very difficult for you to get the desired loan amount from the lender. It is important that your property is according to the terms and conditions set by the government. So, you must check thoroughly about the property before opting for a home loan amount from any of the lenders. No lender will give you the loan amount on some illegal property as it would be quite risky.

Whether or not the Builder is Approved by the Government and the Lender?

Another factor that you need to check if the builder of your property is credible enough. The builder must be approved by the government as well as the lender so that you can get the loan amount against this. There have been a lot of fraud cases from the builder side due to which a lot of people lose lots of money. So, it is important to double-check. You can check the overall record of builders, history of the property sold, current value and location of the property, etc, to make sure it is right.

Do You Have Any Existing Loan or Not?

Your existing obligations (personal loan, vehicle loan, etc.) also decide your home loan eligibility. If you are having an existing loan obligation, your repayment capacity will decrease to an extent. A part of your monthly income will be going towards your existing loan EMI. Either the lender will increase the tenure or sanction you less in such a case.

The answers to the above questions decide whether you are eligible for a home loan or not. If you are found eligible, you can apply.

Lenders Also Check EMI/NMI Ratio Before Determining Home Loan Eligibility

Not many may not know the home loan amount is also dependent on the ratio of Equated Monthly Installment (EMI) to the Net Monthly Income (NMI). Ideally, the proposed EMI should remain within 50%-60% of your NMI. But lenders can change the norm related to EMI/NMI ratio while deciding the loan eligibility. The reason being the expenses and financial state of individuals can differ across different income groups.

For example, someone earning INR 30,000 a month will get a loan amount where the EMI won’t exceed 40% of his/her NMI. Lenders will do so to ensure people with such income have more space for repayment. As the income slab moves up, the repayment capacity can go up by some notches, and then, that 50%-60% ratio talked earlier will apply.

What is the Minimum CIBIL Score Required for Home Loans?

One does not require a CIBIL score to get a home loan as it is a secured loan granted against an equitable mortgage of the property one wants to buy. So, if you go on to default on EMI payments for 6-7 months in a row, the lender can seize the asset and sell it to recover the money given to you via a home loan. But having a good credit score of 750 and above can help reduce interest rates and your eventual outgo. Most lenders have started offering home loan interest rates based on the credit score of an individual.

Home Loan Eligibility FAQs

The eligibility for a home loan is decided based on factors such as the monthly income of the applicant, age, property value, credit history, professional stability, relationship with the lender and the category of the employer. Let us see the role of each of the components and the common frequently asked questions related to home loans.

How much home loan can I get on my salary?

The monthly income is one of the most important factors in deciding your eligibility for a loan. If you are earning good and as per the requirements of the lender, you might be able to get a higher loan amount. However, the loan amount won’t exceed 90% of the property value.

At what age can I apply for a home loan?

Even though the minimum age required for the loan is subject to change from one lender to another, if you are above 21 years, you are eligible to apply.

What is the role of property in deciding the loan amount and rate?

If the property, for which you want to take loan, is located in an area authorized by the state or central government, it is easier to get the approval as the verification process gets simpler. This is the most important factor that people often ignore as they either buy the property at the unauthorized location or they somehow do not maintain the property chain.

Does your credit history matter?

A good credit history is also important to get home loan at lower interest rates.

Which lenders provide plot loans?

As you know, a home loan can be availed for multiple purposes such as plot purchase, land purchase, construction, improvement, Home Conversion, and Home Extension. So, almost all lenders provide loans for plot purchase. You just need to mention the purpose at the time of applying and submit relevant details.