Mistakes to avoid while taking a loan against property
A LAP or loan against property is a secured loan given against a commercial or residential or property…Read More
Opting for a home loan has become a common phenomenon in today’s time. All the banks and NBFCs that provide the option of home loans have their income eligibility calculator that allows the applicant to calculate the eligibility quotient of the applicant for a particular loan that he/ she wishes to apply for. The person needs to add some specific details like the salary, location of residence, type of employment and similar other things.
Let us now take a look at the primary eligibility criteria, which are more or less common for all banks and NBFCs:
|Age Limit||Annual Income||Status of Employment||Type of Residence||Credit Score||Type of Property|
|18-70 years||Can depend on the type of employment||Salaried or Self-employed||Permanent resident or NRI||>750||Under constructed, completed, empty plot|
It is important to mention here that the eligibility criteria and approval of the loan depends on individual banks/ NBFCs.
You can check with online home loan eligibility calculators that all leading banks and NBFCs have to make sure that you can apply for one.
So, now that you know how to check the eligibility, we can divulge a little deeper to understand the factors that affect this eligibility quotient.
1. Age Limit –
The first and foremost criterion that is taken into consideration by any lender is that of the age limit. The home loan tenure is decided by most financial institutes keeping in mind the applicant’s age of superannuation which implies that the younger the applicant is (possibly between 20-30 years of age), the higher the chances of getting the loan sanctioned.
2. Annual Income –
The source of income of an individual depends on whether they are salaried or self-employed. The most important thing that is considered is that the flow of income is steady. Payslips for salaried individuals, bank statements and ITR for independent professionals and self-employed individuals are thus a pre-requisite before applying for the loan.
3. Unsettled Loans –
If you have any outstanding loan with the same lender or any other lender, then this could have an effect on your eligibility quotient.
4. CIBIL (Credit Information Bureau India Limited) score –
Another important factor that determines your eligibility for a home loan is your CIBIL Score. Every financial service provider checks this score before sanctioning the loan and therefore it is important that you keep your credit scores good at points in time to make yourself available for the loan.