Knowing the Eligibility Criteria for Home Loan

Every year a large number of Indians apply for home loans, however, not everybody’s application gets approved. This is mainly because the housing finance companies in India have various eligibility criteria. Some of the important factors that the lenders in India consider before approving the home loan are discussed below:

• Financial credentials of the applicant

One of the most important factors the housing finance companies consider while processing the home loan application is the financial credential of the applicant. The lenders consider the total value of your assets and past debt/loan repayment records. If you are applying for home loan with a co-applicant, the lender would assess the finance profile of both the applicants. The housing finance companies assess your financial credential to determine your ability to pay back the loan.

• Annual/Monthly income of the applicant

The total monthly income of you and your co-applicant would have a significant impact in getting your loan application approved. This is because your income determines your capacity to repay the EMI (equated monthly installment). Usually, the housing finance companies in India require your monthly income to be about 30-40% more than the EMI. If you have any other monthly installment to pay, the chances of your home loan application getting approved may decrease.

• Age of the applicant:

Your age plays a vital role in getting home loan approved. Most of the housing finance companies in India have a minimum age limit to qualify for home loan. You need to be at least 18 years of age to be eligible for any kind of loan. The lenders are also apprehensive about approving loans for old aged people or people who are nearing their retirement age.

• Profession:

This is another important factor that is taken into account by the lenders before sanctioning the home loan application. The housing finance companies consider which profession they applicants are into so as to determine their repayment capacity. If you are working in an organization, you would have better chances of the loan application getting approved than if you are running a business.

If you are a first time borrower, you need to do your research well about the eligibilitycriteria of the lending institution and get all the papers ready in advance to avoid delay. If you have applied for home loan with Indiabulls Housing Finance Limited, we would guide you at every step and understand the eligibility requirements.