Before you apply for a home loan, a good question to ask yourself is, what is my home loan eligibility? Failure to meet all the eligibility criteria set by your lender could result in your application being rejected, and leads to a waste of time, money, and efforts. Here, a few things are important: knowing how to check home loan eligibility based on whether you are salaried or self-employed, gauging your eligibility based on your credit score, and learning how to calculate home loan eligibility based upon your income and financial obligations.
Here is a brief explanation on how to check loan eligibility.
Bajaj Housing Finance Limited requires salaried individuals to:
Read on to know what is the eligibility for home loan for self-employed individuals.
Many lenders require you to have an ideal credit score, that is 750 or above, to get a home loan. This is because your credit score is a numerical representation of your creditworthiness and a low score would thereby imply a certain amount of risk. Nevertheless, with a sub-optimal score, you could still get a loan but at the cost of a higher interest rate, a lower principal, or some other not-so-favourable terms. Below are credit score ranges, and you should try to climb higher to reduce the risk and improve your eligibility.
Credit Score Range for Home Loan
You must also know how to calculate loan eligibility based on your income and obligations. Most lenders assume that you would use 40-50% of your income for household expenses and so, you would have only 50-60% left as surplus. This amount forms the upper limit for your EMI and your EMI impacts your principal directly.
Alongside income and obligations are age and location, as lenders offer loans differently based on the number of income-earning years left and the city-specific conditions.
So, how to find home loan eligibility that applies specifically to you? With Bajaj Housing Finance Limited, you need not spend time trying to figure out how to calculate housing loan eligibility based on all these factors. Simply use the home loan eligibility calculator !
All you need to do is:
Now that you know how to know loan eligibility, proceed to make a successful application and become a homeowner in no time!
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Last update on 11-Mar-2021
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