Potential borrowers must meet certain home loan eligibility criteria before applying for the advance to experience hassle-free loan processing. The criteria laid down include parameters related to age, income, employment status and stability, as well as the property value.
Both self-employed and salaried individuals can avail credits against separate sets of home loan eligibility requirements. Bajaj Housing Finance Limited keeps the home loan eligibility criteria simple to improve the loan’s accessibility to borrowers.
Check home loan eligibility for both salaried and self-employed individuals below and apply as per your profile.
Home Loan Eligibility Criteria for Salaried Individuals
Check the housing loan eligibility requirements laid down by Bajaj Housing Finance Limited.**
**Note that the home loan eligibility requirements are indicative and can include additional criteria. Terms and conditions applied.
Home Loan Eligibility Criteria for Self-Employed Individuals
Check home loan eligibility criteria for self-employed applicants before applying. They include the following. **
**Note that the eligibility criteria for home loan mentioned are indicative only. Borrowers may be asked to fulfil additional requirements. Terms and Conditions apply.
Apply with the following set of home loan documents* to avail funds from Bajaj Housing Finance Limited. The documents required for home loan are kept to minimal to reduce the processing time.
*The list of documents required for home loan is indicative. Borrowers may need to provide additional documents to back their home loan eligibility. Terms and Conditions apply.
All applicants also need to provide a set of property documents required for home loan such as allotment letter, sale agreement, receipt of payments made to the agent or developer, etc. You can also use a home loan EMI calculator to figure out a suitable loan amount and the instalments payable before applying for the loan.
Home Loan Eligibility Calculator
Utilise a housing loan eligibility calculator to estimate the home loan suitable for you as per your income and repayment capacity. Enter only a few essential details like your monthly income, city of residence, date of birth, and monthly obligations to arrive at a suitable value as per your home loan eligibility.
The calculator provides an instant and error-free estimate of the maximum home loan amount borrowers can avail against their current eligibility. Utilise the calculator before applying f or a home loan with improved chances of approval.
Proper planning to avail the advance and timely repayment can help borrowers maximise advantages like improvement in credit score, availing home loan tax benefits, etc.
The home loan eligibility of an individual depends on various factors. They include –
1. Age of the applicant
An individual’s age determines a suitable tenure for a home loan. Applicants at the onset of their career can conveniently avail the loan for an extended tenure due to their repayment potential for a long term. Lenders thus cap the maximum borrowing age for salaried and self-employed applicants to reduce the risk of default in repayment.
2. Credit profile and score
An applicant’s credit profile and score are other essential home loan eligibility parameters that help lenders identify the risk involved in extending the loan. Individuals with a high credit score of over 750 and a healthy credit profile of timely repayments stand a better chance to receive prompt approval for a housing loan.
3. Employment status/business stability
Based on the applicant’s profile, financial institutions also check his/her income stability. An employment of 3+ years for salaried applicants depicts a stable income source and an increased propensity for timely repayment.
Self-employed individuals with a current business vintage of 5+ years depict suitable home loan eligibility with stable occupation and a reliable income for timely repayment.
4. Condition of the property
The mortgaged property’s condition, current market value, and resale value also determine a borrower’s eligibility for a housing loan. Properties with all amenities in their vicinity and situated in prime locations stand a better chance of raising high loan value, and vice versa. Lenders also consider a property’s age as a contributing factor in determining the maximum loan amount they can extend. Properties constructed recently carry a higher propensity for a sizeable loan amount.
Fixed Obligation to Income Ratio or FOIR is a measure of an applicant’s repayment capacity. It is calculated as a percentage of one’s monthly income against the fixed monthly liabilities like EMIs, rent, etc.
It contributes to the overall housing loan eligibility and must not exceed 50% of an applicant’s monthly income for the required approval.
Loan to Value ratio or LTV represents the maximum loan amount a lender can extend as a percentage of the mortgaged property’s current market value. As per RBI guidelines, a lender cannot extend more than 90% of the property’s total valuation as home loan , thus contributing to an essential eligibility factor. So, if the property’s value is Rs.75 lakh, the loan amount provided by the lender cannot exceed Rs.67.50 lakh.
Applicants must thus make a down payment of not less than 10% of the property’s valuation to avail the required loan. The amount of down payment required and the total loan value available also depend on the LTV set by the lender within the 90% cap.
Home Loan Eligibility Criteria
Housing Loan EMI Calculator
How to Apply for Home Loan
Pradhan Mantri Awas Yojana
Home Loan Balance Transfer Calculator
Get additional top-up loan with Loan against property balance transfer
Now calculate your monthly EMI, instalments and rate of interest on the loan amount
Get a top up loan without additional documentation
Now know your Home Loan Eligibility