Home Loan Eligibility plays an important role while availing a home loan. It helps you to make yourself aware of how much finance you can get from the bank. It also helps you to understand your standing compared to the lender. If your position is better you can negotiate terms and conditions as well as the interest rate for a home loan. There are multiple factors that affect your home loan eligibility. If you are planning to go for a home loan you should know about your Home Loan Eligibility and ways to improve your eligibility. In this post, I will share Top Bank Home Loan Eligibility Criteria. I will also help you in increasing your eligibility with tips and tricks.
What is Home Loan Eligibility?
Eligibility of Home Loan means how much home loan you can get from the bank? There are multiple factors that decide your eligibility. Some of them are your financial situation, monthly income, your profession, employer, your age, credit rating, location property etc.
The monthly income is one of the most important factors in deciding your eligibility for loan. If you are earning good, you might be able to get a higher loan amount. The maximum loan amount is in the range of 75% to 90% of the property value.
Top Bank Home Loan Eligibility Criteria
SBI Home Loan Criteria
| Eligibility Criteria | Salaried | Self-employed |
| Age | 18- 70 Years | 21- 70 Years |
| Income | ₹1,20,000 p.a. | ₹2,00,000 p.a. |
| Loan Amount Offered | Customized | Customized |
| Tenure | 30 Years | 30 Years |
| Current Experience | 2 Years | 3 Years |
HDFC Home Loan Criteria
| Eligibility Criteria | Salaried | Self-employed | |
| Age | 21-60 Years | 21-65 Years | |
| Income | ₹1,80,000 p.a. | ₹1,80,000 p.a. | |
| Work Experience | 1 Years | 5 Years | |
| Loan Amount Offered | ₹ 15 Lakh to ₹ 10 Cr | ||
| Tenure | 30 Years | 30 Years | |
ICICI Home Loan Criteria
| Eligibility Criteria | Salaried | Self-employed | |
| Age | 21-60 Years | 21-60 Years | |
| Income | ₹3,00,000 p.a. | ₹3,00,000 p.a. | |
| Work Experience | 2 Years | 5 Years | |
| Loan Amount Offered | ₹ 15 Lakh to ₹ 10 Cr | ||
| Tenure | 30 Years | 30 Years | |
How to Increase Home Loan Eligibility? – Tips & Tricks
Following factors will help you in enhancing your eligibility of home loan –
- Good Repayment History
- Good Credit Score 750 and above
- Regular Income
- No loans for credit card dues
- Working Spouse as Co-applicant
Few tips and tricks to enhance your eligibility for home loan are given below.
Clear your existing loans – If you are already repaying your older loan it is recommended to clear your existing dues before applying for the loan. The lender assesses your eligibility for a loan based on your debt to income ratio. The debt to income ratio means the percentage of your total monthly income that goes in paying your monthly debts.
Improve your Credit Score – Credit score plays a crucial role in deciding your loan approval and loan amount. Every time you apply for the loan bank or financial organization checks for your credit score. If your credit history is good you are likely to get a higher loan amount. Good credit score also leads to low home loan interest rates offered. There are multiple ways to improve your credit score. You can boost your credit score via 7 different ways.
Go for Joint Loans – Another option to increase your eligibility for a home loan is to apply with a joint name. If working spouse or spouse with good credit score is added as a co-applicant EMI affordability increases. This leads to higher loan amount sanction or lowers interest rate loans.
Opt for Longer Tenure – One of the most common ways to increase your eligibility for home loan is opting for longer duration loan. As and when you increase your loan tenure it indicates that you have a longer time to repay the loan. Lender see this thing positively as it increases possibility of timely payment and reduction in the risk.
Additional Source of Income – You can show additional source of income and increase your eligibility for home loan. The additional income could be rental income, part-time business income, rent from equipment or other sources. You need to show valid proof such as bank statement or records for this. As it directly improves your financial health you are likely to get loan of higher amount.
Consider Step up Loans – Step up loans is better option for people with lower salary. In this loan you will pay lower EMI in the initial year. The EMI amount increases gradually and step up at the later stage. In the step up loans your eligibility of getting higher loan amount is more.
Over to you –
Buying a home is one of the important financial decision. So, don’t be in a hurry to apply for a home loan. Do your own research before applying for the home loan. Check for your CIBIL score, compare all available home loan options and check your eligibility before applying for a home loan. You can use tips and tricks given above to increase your loan eligibility.
