According to industry experts, individuals willing to shift to larger homes owing to the present work demands have resulted in a rise in housing loan demands.
While loans are highly helpful, as evident from the stats, applicants must fulfil the eligibility criteria for acquiring them. Though an individual can use a home loan eligibility calculator for self-planning, they should be aware of the criteria in detail.
Housing loan eligibility criteria for salaried applicants
Illustrated below are the eligibility criteria applicable for salaried individuals:
Personal loan in UAE 4000 salary
- Should be an Indian resident
- Age should be between 23 to 62 years
- Should have a minimum work experience of three years
- Must be an employee with a stable source of income
Home loan eligibility criteria for self-employed applicants
Illustrated below are the eligibility criteria applicable for self-employed individuals:
- Age should be between 25 to 70 years
- Should be an Indian resident
- Should be a self-employed individual having a business continuity of five years
Applicants must keep in mind that the above eligibility requirements for a housing loan are indicative. Besides these, the financial institutions may lay down additional requirements. In addition, some other terms and conditions can also be applied. Individuals, hence, must reach out to the concerned lender and be aware of the exact eligibility criteria prior to applying for the loan.
As mentioned above, one can also use a home loan eligibility calculator, which helps estimate the loan suitable for an individual based on the repayment capacity and income. This is a highly user-friendly tool that is readily available online. Using this calculator prior to loan applying will increase the chances of loan approval.
Similar to this tool, reputed financial institutions also offer a home loan EMI calculator. This helps in the proper management of a loan.
This financial planning tool helps gauge the appropriate loan amount, home loan interest rate in India and loan tenor. Punctual repayment of the loan helps boost an individual’s credit score and opens doors for multiple offers.
For instance, they can enjoy pre-approved offers extended by reputed lenders. These offers help to make the lending process hassle-free and also accelerate the same. Pre-approved offers are extended on several financial products like loans against property, and more. Applicants can check their pre-approved offers by providing a few details, such as their name and contact details.
Apart from knowing the eligibility criteria and the utility of a home loan eligibility calculator, individuals must be aware of the various factors influencing home loan eligibility.
Factors that influence home loan eligibility
Listed below are some factors that affect the home loan eligibility of a borrower:
Age of an applicant
The age of an applicant helps to determine a suitable tenor for the loan. Financial institutions cap the maximum borrowing age for self-employed and salaried applicants to reduce the risk of default in repayments. Loan applicants starting their careers can easily opt for a loan with an extended tenor because of their long-term repayment potential.
Condition of property
The current market value, resale value, and condition of the property determine an individual’s eligibility for a home loan. Properties located in prime locations and featuring proper amenities in their vicinity have a good chance of raising high loan value.
Financial institutions also consider the property’s age as a contributing factor for determining the maximum loan amount. Furthermore, recently constructed properties have a greater propensity for acquiring a substantial loan amount.
A borrower’s credit profile is another eligibility parameter that helps home loan lenders identify the risk associated with extending a loan. Applicants with a decent credit profile and high credit score have a better chance of getting prompt loan approval.
Ensure to keep all of these factors in mind before acquiring a loan. Applicants can make use of a home loan eligibility calculator anytime for self-evaluation.