Most people in India need a home loan from a bank/financial institution in order to buy a house of their own. Of course, taking a home loan offers certain tax benefits as well. However, it is important that you choose the right home loan product that provides optimum benefits to you. There are hundreds of home loan providers, both in public and private sectors, in the country and it can be a challenging task to identify the right one. However, it all starts with a clear understanding of the home loan eligibility criteria that are looked into by these institutions.
All home loan providers take into account many eligibility criteria before approving your application. Some of the major ones are:
This is one of the crucial eligibility criteria that home loan providers look into. If you are employed, you must have been with the current organization for at least two years. If you are self-employed or in business, you must have been earning an income for at least a minimum period of 3 years through your business or profession.
Age Eligibility Criteria
The probability of getting a home loan sanctioned is higher when you are young. However, most banks offer home loans for salaried people aged between 21 and 60 years. In the case of self-employed/business people, their age must be between 24 and 65 years.
Apart from your job/business and the performance of your company, your credit score assumes a lot of significance. If your credit rating is good, the chances of you getting a home loan with better flexibility in terms of loan amount, tenure, EMI, and interest rate are higher. Payment defaults and outstanding loans can have a negative impact. Typically all banks check your credit score to understand how you have repaid your previous /existing loans . Typically all banks check your credit score to understand how you have repaid your previous /existing loans .
If you are employed, the reputation of your employer is also taken into consideration. If the company you are working for is reputed, your credibility will also increase.
When it comes to assessing your financial situation, home loan providers do not just consider your present status alone. Your past records will also be looked into. Financial stability is an important factor in deciding the home loan amount to be sanctioned in your specific case.
If you are applying for a home loan for the very first time, you might find the eligibility criteria to be a little overwhelming. At Finwzz, we have the expertise and experience to advise you on all aspects related to obtaining a home loan. Further, we have built relationships with some of the major home loan providers to help you get the best deals.