In order for a home loan application to be approved by a bank, applicants must complete a set of eligibility standards. The bank determines that the borrower will be able to repay the loan on time and will not default if the application meets the eligibility standards. The bank will reject an application if the applicant does not match the eligibility standards, which will have a negative impact on the user’s credit profile. Refusal of a loan application has a negative impact on your credit profile and decreases your overall credit score. If you have a poor credit score, getting a home loan will be more difficult in the future. Loan rejections on a regular basis make you appear credit-hungry to lenders, while also reducing your overall credit score.
Banks have a set of eligibility requirements that applicants must meet in order for their housing loan application to be authorised. Fulfilling the qualifying conditions assures that the borrower will be able to repay the loan and will not default. However, if an applicant does not meet the eligibility requirements, the bank will reject their home loan application, negatively impacting the user’s credit profile.
Home Loan Eligibility
You can check your home loan eligibility using a home loan eligibility calculator. It is always a good idea to check your eligibility before applying for a home loan in order to avoid rejection on your home loan application. Your eligibility for a house loan is a major factor in determining the loan amount that will be disbursed. Typically, home loans are issued for about 80% of the total property value. The borrower must pay the remainder of the loan as a down payment on the home he wants to buy. However, a salaried employee’s maximum house loan amount is limited at INR 3.5 crores. The highest house loan limit for self-employed candidates, on the other hand, is set at INR 5 crores.
| ELIGIBILITY CRITERIA | |
| Age Limit (Salaried Individuals) | 23 Years to 62 Years |
| Age Limit (Self-Employed) | 25 Years to 70 Years |
| CIBIL score | 750 or above |
| Work Experience for Salaried Individuals | Min. 3 Years of Work Experience |
| Business Continuity | Min. 5 Years of Stable Business Background |
| Salary | A Minimum Salary of INR 25,000 |
| Nationality | Indian Citizen |
The chart above shows the home loan eligibility requirements for major banks, which you must meet in order for your home loan application to be granted. Even if you don’t satisfy all of the requirements, there are ways to have your home loan application approved. One of the most typical methods for getting a loan approved without satisfying the eligibility requirements is to assign a co-applicant to the entire home loan process. When you apply for a home loan, you can increase your bank’s trustworthiness by adding a co-applicant to the loan, in addition to the security you provide. If you have a co-applicant, banks are more likely to trust you. Banks prefer a CIBIL score of at least 750, as well as a clean credit report. If you’ve ever defaulted on a previous loan, it will appear on your credit report, and banks may be hesitant to lend you money.
Conclusion
The loan amount as well as the loan period must be carefully considered. As a result, it’s a good idea to check your maximum loan eligibility with a home loan eligibility calculator and adjust your spending accordingly. Make a quick comparison of the perks offered by numerous institutions before applying for a house loan of your maximum capacity. By doing so, you may be confident that your loan application will be granted rather than rejected.
