Home loan eligibility mainly depends on the person's repayment capacity and income (s) applying for a home loan. Several other considerations determine home loan eligibility, but these are the most prominent. A person with a stable income source, one who can easily repay his monthly installments, one who has not defaulted in the past, among many others, are the qualifying factors for home loan eligibility. But with the grwowing number of loan applicants, there have been many fraudulent individuals who have used bogus documents to get a home loan.
Home Loan Eligibility Criteria
The applicant should:
- Be of Indian nationality.
- Be self-employed or salaried.
- Have a minimum salary of Rs. 25,000 per month.
- Be above 21 years & below 65 years old age.
- Have a loan tenure of up to 30 years.
Factors Affecting Home Loan Eligibility
Some additional factors affect home loan eligibility. One such important factor is the tenure of the borrower. The longer the tenure, the more chance you have to get approved. But the length of tenure greatly depends on the type of mortgage agreement entered into by both parties. Usually, lenders do not allow more than thirty years of tenure for mortgages.
Similarly, the borrower's credit score is another factor that plays a vital role in home loan eligibility determination. Generally, lenders do not rely on the credit score only, but it is also important for them to know your credit profile. This is so because a good credit profile will automatically qualify you for a good mortgage deal. If your credit profile is good, then your application will be eligible for the loan easily. If you've a bad credit score, you should take the necessary measures to improve your credit score quickly, or else your efforts to apply for a mortgage will be futile.
Different Types of Home Loans in India
- Land Purchase Loans
- Home Purchase Loans
- Home Improvement Loans
- Home Construction Loans
- Home Expansion Loans