Owning a house is an important investment that requires substantial capital. But if you don’t wish to dig into your savings, housing finance can provide large funds to help you achieve this goal. Most banks and lending institutions extend tempting offers on Home Loans with customised repayment options and flexible tenors making it easier for eligible individuals to buy a house.
However, some people fail to obtain housing loans since they do not meet the requisite criteria such as regular income, age, property value and various other factors considered for Home Loan eligibility.
What are the Ten Factors That Impact Your Loan Eligibility?
There are several aspects to examine before taking a Home Loan in India, significant among them being Home Loan eligibility. Lenders have specific parameters that applicants must fulfil to qualify for a housing loan. Therefore, it is crucial to understand the factors affecting Home Loan eligibility, which include:
1.Age
Lenders normally set an age limit for potential borrowers. They prefer lending to younger applicants because of a long career and financial growth that makes repayments easier. Whereas, those in their 50s or nearing retirement would have fewer working years which may render EMI pay-outs difficult. Hence, lenders show reluctance in tendering loans to such individuals.
2.Income
Income is a defining aspect of one’s repayment abilities that safeguards against probable defaults. A high income helps you manage EMIs conveniently, which is why lenders evaluate an applicant’s financial situation right at the onset.
3.Credit Score
Credit ratings give lenders a fair idea of your financial history. It indicates the way you handle liabilities, whether you can be entrusted with a Home Loan and how responsibly you may repay the EMIs. Generally, a CIBIL score of 750 and above is favoured as it denotes creditworthiness. On the other hand, a lower credit score implies poor credit behaviour thereby reducing loan eligibility.
Additional Read: What is a Good CIBIL Score for a Home Loan
4.Employment Status
Salaried employees should ideally possess two to three years of work experience in the present organisation to obtain loan approvals. Holding a stable job with regular sources of earnings assures lenders of timely repayments. In the case of self-employed applicants, lenders assess their business performance to determine eligibility. Nonetheless, they may be offered higher interest rates as compared to salaried applicants due to inconsistent cash flow.
5.Property Value and Profile
Lenders sanction suitable loan amounts after evaluating the property’s market price. If the profile of the house fits the lender’s parameters, your eligibility soars. Typically, housing loans cover 75% - 90% of the actual home cost, basis eligibility.
6.Loan Amount
Opting for the appropriate loan amount per your eligibility ensures easier EMIs and quicker approvals. Remember, even if you are eligible for a higher sum, you should only avail what you really need. A higher principal might make EMI pay-outs tougher. Furthermore, missed or delayed payments can adversely affect your credit score and future credit eligibility.
Access an online Home Loan Eligibility Calculator to view the amount that you are eligible to borrow. It is easy to use and requires the following inputs:
- Total monthly income
- Preferred repayment period
- Home Loan interest rate offered by the lender
- Other EMIs
This financial tool computes the given data instantly. It displays the estimated loan amount and EMI sum giving you a realistic picture of the proposed loan.
7.Loan Tenor
Loan tenors for Housing loans extend up to 30 years. However, you can enjoy benefits of this flexible tenor only if your age falls well within the maximum age limit at the time of loan maturity. For example, If you are a salaried employee of age 58, then you are eligible only for 4 more years of loan by default (considering maximum age limit to be 62 years) regardless of the maximum loan tenor the lender offers.
Additional Read: How to Pick the Right Home Loan Tenor
8.Current Obligations
The status of your ongoing loans and credit card payments tells lenders whether you are capable of handling further credit. If you are not left with sufficient funds upon repaying the existing debts each month, lenders may not approve the loan request. In such a scenario, you could try paying off your previous loans and other pending dues. You may also include any extra earnings, regular bonuses or rental income in your loan application; or even a co-borrower to boost eligibility.
9.Down Payment
Lenders only fund a certain portion of your property’s value. The remaining amount has to be borne by the borrower in the form of a down payment. A hefty down payment, which is over and above the minimum requirement, brings down the principal amount to be sanctioned and the resultant loan interest.
10.Documentation
Supporting documentation is critical to loan processing. If your paperwork is not in order, it can affect your eligibility. Every lender may have specific documentation requirements. It is best to verify this list and keep them handy for smoother approvals.
Additional Read: Checklist of Documents Required for Home Loan
To Conclude
Home Loan eligibility can make or mar your Home Loan application. If you have the right eligibility, lenders will proffer preferential loan deals. You can avail of bigger loan amounts at the lowest interest rates with comfortable repayment tenors. However, if found lacking, you need to enhance your eligibility first before you apply for a house loan to evade loan rejections.
DISCLAIMER:
While care is taken to update the information, products, and services included in or available on our website and related platforms/websites, there may be inadvertent errors or delays in updating the information. The material contained in this website and on associated web pages, is for reference and general information purposes, and the details mentioned in the respective product/service document shall prevail in case of any inconsistency. Users should seek professional advice before acting on the basis of the information contained herein. Please take an informed decision with respect to any product or service after going through the relevant product/service document and applicable terms and conditions. Neither Bajaj Housing Finance Limited nor any of its agents/associates/affiliates shall be liable for any act or omission of the Users relying on the information contained on this website and on associated web pages. In case any inconsistencies are observed, please click on contact information.
Trending Articles
cibil Cibil
[N][T][T][N][T]
What is CIBIL? Understand How It Works & Its Importance2023-01-31 | 6 min
cibil Cibil
[N][T][T][N][T]
What Does a Zero or Negative Credit Score Mean?2023-02-24 | 4 min
loan+against+property Loan Against Property
[N][T][T][N][T]
Understanding the Fees and Charges on Your Loan Against Property2023-02-16 | 8 min
loan+against+property Loan Against Property
[N][T][T][N][T]
Understanding the Fees & Charges on Your Loan Against Property2023-02-14 | 6 min
home+loan Home Loan
[N][T][T][N][T]
How to Connect with Bajaj Housing Customer Care2023-06-27 | 5 Min
tax Tax
[N][T][T][N][T]
Can I Claim Home Loan Tax Benefits on an Under-Construction Property?2023-03-29 | 5 min
cibil Cibil
[N][T][T][N][T]
How to Increase Your CIBIL Score Above 800: 7 Proven Methods2023-01-24 | 4 min
cibil Cibil
[N][T][T][N][T]
Check CIBIL Score with PAN Card for Free, in 3 Steps2023-03-28 | 5 min
home+loan Home Loan
[N][T][T][N][T]
ITR Filing for Home Loan – Know the Right Process to File Your Income Tax Returns2023-02-16 | 5 min
tax Tax
[N][T][T][N][T]
How to Save Tax Between Rs 20 to Rs 25L Salary in India2023-07-19 | 6 min
tax Tax
[N][T][T][N][T]
Difference Between Old Vs New Tax Regime2023-08-09 | 5 min
tax Tax
[N][T][T][N][T]
How to Save Tax for Salary Above 30 Lakh?2023-08-07 | 6 min
home+loan Home Loan
[N][T][T][N][T]
Secured vs Unsecured Loan - Know the Difference2023-08-24 | 2 min
cibil Cibil
[N][T][T][N][T]
What's Considered a Healthy Credit Mix?2023-08-10 | 3 min
home+loan Home Loan
[N][T][T][N][T]
Common Mistakes to Avoid When Applying for A Home Loan2023-08-10 | 2 min
home+loan Home Loan
[N][T][T][N][T]
How to Choose the Best Home Loan?2023-08-09 | 4 min
home+loan Home Loan
[N][T][T][N][T]
Pros and Cons of Taking A Joint Home Loan with your Spouse2023-08-10 | 7 min
home+loan Home Loan
[N][T][T][N][T]
Making Financial Planning Easy with Home Loan EMI Calculator2023-09-06 | 2 min
cibil Cibil
[N][T][T][N][T]
What to Know About CIBIL TransUnion Score 2.02023-08-23 | 3 min
cibil Cibil
[N][T][T][N][T]
How can I Remove Loan Inquiry from CIBIL Credit Report2023-08-24 | 5 min
cibil Cibil
[N][T][T][N][T]
How Many Credit Inquiries are Too Much in a Year2023-09-21 | 2 min
home+loan Home Loan
[N][T][T][N][T]
Difference Between Bank Rate and Repo Rate2023-09-22 | 5 min
home+loan Home Loan
[N][T][T][N][T]
Increase or Decrease Effects of Repo Rate2023-08-29 | 7 min
home+loan Home Loan
[N][T][T][N][T]
Difference Between Co-owner, Co-borrower, Co-Applicant, and Co-Signer in Home Loan2023-08-31 | 6 min
tax Tax
[N][T][T][N][T]
How to Claim Tax Benefits on Joint Home Loans2023-07-10 | 4 min
home+loan Home Loan
[N][T][T][N][T]
Understanding the Benefits of a Home Loan EMI Calculator2023-07-12 | 5 min
home+loan Home Loan
[N][T][T][N][T]
What Happens If Home Loan EMI Bounces? Know the Consequences2023-07-11 | 5 min
home+loan Home Loan
[N][T][T][N][T]
Tips to Avoid Rejection of Your Home Loan Application2023-08-01 | 3 min
cibil Cibil
[N][T][T][N][T]
What Is Credit Mix and How Can It Help Your Credit Score?2023-07-12 | 3 min
home+loan Home Loan
[N][T][T][N][T]
Check Housing Loan Eligibility with Home Loan Eligibility Calculator2023-07-12 | 5 min
tax Tax
[N][T][T][N][T]
Comparison Between New Tax Regime vs Old Tax Regime2023-08-03 | 5 min
home+loan Home Loan
[N][T][T][N][T]
Advantages for First-Time Home Buyers2023-07-14 | 4 min
home+loan Home Loan
[N][T][T][N][T]
Tips to Get Home Loan with Minimum Down Payment in India2023-07-11 | 5 min
cibil Cibil
[N][T][T][N][T]
11 Common Myths about CIBIL Score2023-03-31 | 4 min
tax Tax
[N][T][T][N][T]
Top 5 Tax Benefits and Other Advantages of a Joint Home Loan2023-07-10 | 8 min
home+loan Home Loan
[N][T][T][N][T]
What is the Ideal Down Payment for a Home Loan?2023-06-16 | 5 min
home+loan Home Loan
[N][T][T][N][T]
Factors That Determine Your Home Loan Eligibility2023-07-24 | 8 min
cibil Cibil
[N][T][T][N][T]
How to Get a Good Credit Mix and Boost Your Credit Score2023-07-11 | 4 min
home+loan Home Loan
[N][T][T][N][T]
What Is Home Loan Eligibility and How Is It Calculated2023-07-11 | 6 min
home+loan Home Loan
[N][T][T][N][T]
Differences Between Repo Rate and Monetary Policy Tools2023-07-28 | 5 min
cibil Cibil
[N][T][T][N][T]
Pay Minimum Amount Due on Your Credit Cards Will Impact Your Credit Score2023-07-10 | 5 min
cibil Cibil
[N][T][T][N][T]
Will a Loan Settlement Ruin My CIBIL Score?2023-03-21 | 4 min
cibil Cibil
[N][T][T][N][T]
Here Is How a Bounced Cheque Can Affect Your CIBIL Score2023-06-06 | 5 min
cibil Cibil
[N][T][T][N][T]
Does a Name Change Affect Your Credit Score2023-06-01 | 4 min
tax Tax
[N][T][T][N][T]
Tax Benefits on Home Loans for Self-Employed Individuals: What You Need to Know2023-06-01 | 4 min
tax Tax
[N][T][T][N][T]
How to Reduce the Loan Against Property Interest Rate?2023-06-19 | 3 min
tax Tax
[N][T][T][N][T]
What Does It Mean to Have a CIBIL Score of -12023-06-16 | 4 min
home+loan Home Loan
[N][T][T][N][T]
What Happens to a Home Loan in the Case of the Borrower's Death?2023-04-17 | 4 min
home+loan Home Loan
[N][T][T][N][T]
Taking a Home Loan to Buy a Property for Investment? Here Are 5 Points to Consider2023-04-17 | 5 min
cibil Cibil
[N][T][T][N][T]
Introduction to Credit Information Bureau India Limited (CIBIL)2023-04-17 | 6 min
cibil Cibil
[N][T][T][N][T]
Why Is CIBIL Score Important for Your Financial Health?2023-04-17 | 3 min
cibil Cibil
[N][T][T][N][T]
How Can Your CIBIL Score Help in Negotiating Better Home Loan Deals2023-05-18 | 4 min
cibil Cibil
[N][T][T][N][T]
What is CIBIL Score and How is it Impacted by a Missed EMI?2023-05-31 | 2 min
cibil Cibil
[N][T][T][N][T]
The Role of CIBIL Score in Determining your Home Loan Disbursement Amount2023-05-31 | 2 min
cibil Cibil
[N][T][T][N][T]
hat Does Your Credit Score Expose About You?2023-04-17 | 5 min
cibil Cibil
[N][T][T][N][T]
How Does Being A Loan Guarantor Affect Your Credit Score?2023-03-23 | 4 min
home+loan Home Loan
[N][T][T][N][T]
Should I Apply for a Pre-Approved Home Loan or an After Property Finalisation Loan?2023-03-23 | 5 min
cibil Cibil
[N][T][T][N][T]
Minimum CIBIL Score for Business Loans2023-04-17 | 5 min
home+loan Home Loan
[N][T][T][N][T]
5 Great Ways Women Can Benefit from Taking a Housing Loan2023-04-25 | 5 min
home+loan Home Loan
[N][T][T][N][T]
What Do You Need to Know About Home Loan Foreclosure?2023-03-23 | 5 min
home+loan Home Loan
[N][T][T][N][T]
A Complete Guide for Home Loan Insurance2023-04-03 | 4 min
home+loan Home Loan
[N][T][T][N][T]
Know All About the HRA Benefit on Payment of House Rent2023-04-03 | 6 min
cibil Cibil
[N][T][T][N][T]
Does CIBIL Score Affect Loan Against Property Eligibility?2023-02-15 | 7 min
cibil Cibil
[N][T][T][N][T]
Tips to Maintain Your Business CIBIL Score Above 7002023-02-02 | 5 min
tax Tax
[N][T][T][N][T]
Everything You Should Know About Tax Savings When Taking a Home Loan2023-01-09 | 5 min
tax Tax
[N][T][T][N][T]
5 Tax Savings and Other Advantages You Can Get When You Apply for Home Loans2023-02-17 | 6 min
tax Tax
[N][T][T][N][T]
Should You Get a Home Loan to Save Your Taxes?2023-02-20 | 5 min
tax Tax
[N][T][T][N][T]
What is Property Tax in India and How is It Calculated?2023-02-28 | 4 min
tax Tax
[N][T][T][N][T]
8 Different Ways to Avail Tax Benefits on Home Loans2023-03-03 | 4 min
tax Tax
[N][T][T][N][T]
How to Avail Maximum Home Loan Tax Benefit in India in 2023?2023-03-17 | 6 min
tax Tax
[N][T][T][N][T]
A Closer Look at Four Types of Loans That Offer Incredible Tax Benefits2023-02-16 | 4 min
tax Tax
[N][T][T][N][T]
How to Claim Home Loan Tax Exemptions and HRA Together2023-03-22 | 5 min
tax Tax
[N][T][T][N][T]
How Much Tax Can be Saved Under Sections 80C, 80D, and 80G?2023-02-22 | 5 min
loan+against+property Loan Against Property
[N][T][T][N][T]
5 Benefits of Using Area Conversion Calculator2023-02-14 | 6 min
loan+against+property Loan Against Property
[N][T][T][N][T]
5 Important Reasons to Opt for a Loan Against Property to Start Your Own Business2023-02-10 | 2 min
loan+against+property Loan Against Property
[N][T][T][N][T]
What Is the Difference Between Gold Loan and Loan Against Property?2023-03-02 | 6 min
tax Tax
[N][T][T][N][T]
How to Avail of Tax Benefits on a Loan Against Property2023-10-28 | 5 Min
tax Tax
[N][T][T][N][T]
Know all About Top Up Loans and How to Avail of Tax Benefits2022-12-12 | 5 min
home+loan Home Loan
[N][T][T][N][T]
How to Determine Your Ideal Credit Score for a Home Loan?2023-03-30 | 4 min
home+loan Home Loan
[N][T][T][N][T]
How to Get a Housing Loan Approved Instantly?2023-04-12 | 5 min
loan+against+property Loan Against Property
[N][T][T][N][T]
Things to Do If Your Loan Against Property Application Gets Rejected2023-02-14 | 5 min
home+loan Home Loan
[N][T][T][N][T]
What is the Process to Get Your Home Loan Approved Fast with Bajaj Housing Finance?2023-02-15 | 6 min
home+loan Home Loan
[N][T][T][N][T]
A Guide to Statutory Liquidity Ratio2023-02-22 | 5 min
home+loan Home Loan
[N][T][T][N][T]
Get Your Down Payment Funds Ready with These 5 Easy Steps2023-03-20 | 5 min
home+loan Home Loan
[N][T][T][N][T]
5 Strategies to Manage High Home Loan EMIs Effectively2023-02-22 | 6 min
home+loan Home Loan
[N][T][T][N][T]
5 Tips for Lowering Home Loan Interest Rates in 20232023-03-28 | 5 min
home+loan Home Loan
[N][T][T][N][T]
Why Is Credit Score Important for Home Loan Lenders?2023-03-21 | 5 min
home+loan Home Loan
[N][T][T][N][T]
Importance Of a Good Credit Score in The Home Loan Process2023-03-20 | 4 min
home+loan Home Loan
[N][T][T][N][T]
How Do You Overcome Home Loan Repayment Burden?2023-02-13 | 2 min
home+loan Home Loan
[N][T][T][N][T]
Difference Between Home Loan and Personal Loan: Which is better?2023-02-09 | 4 min
home+loan Home Loan
[N][T][T][N][T]
Home Loan EMI Calculator Benefits and It’s Features2023-02-21 | 4 min
home+loan Home Loan
[N][T][T][N][T]
Everything You Need to Know About Top-up Loans on a Home Loan2023-02-20 | 6 min
home+loan Home Loan
[N][T][T][N][T]
Why Paying Home Loan EMI is Better Than Renting a Home?2023-02-20 | 4 min
home+loan Home Loan
[N][T][T][N][T]
Should You Take a Home Loan Even If You Have Enough Money to Buy a House?2023-01-30 | 3 min
home+loan Home Loan
[N][T][T][N][T]
4 Key Benefits of Home Loan Balance Transfer to Bajaj Housing Finance Limited2023-01-09 | 5 min
home+loan Home Loan
[N][T][T][N][T]
Best Credit Score for Home Loans & How to Improve Yours2023-08-31 | 6 min
cibil Cibil
[N][T][T][N][T]
Is a Good CIBIL Score Mandatory for Home Loan Approval?2023-02-17 | 4 min
cibil Cibil
[N][T][T][N][T]
What Is a Good Credit Score for a Home Loan?2022-12-28 | 5 min
cibil Cibil
[N][T][T][N][T]
What is the Role of CIBIL Score in Getting a Home Loan?2023-03-22 | 5 min
cibil Cibil
[N][T][T][N][T]
Importance of CIBIL Score & Tips To Improve It2023-02-21 | 5 min
home+loan Home Loan
[N][T][T][N][T]
How Can Your Credit Score Impact Your Home Loan Interest Rate?2023-02-17 | 6 min
cibil Cibil
[N][T][T][N][T]
A Helpful Guide to Understanding Your Credit Report2023-01-27 | 5 min
cibil Cibil
[N][T][T][N][T]
What is the Procedure to Check your CIBIL Score Rating?2023-03-27 | 4 min
cibil Cibil
[N][T][T][N][T]
Why Is a CIBIL Score Measured Between 300 and 900?2023-02-21 | 4 min
cibil Cibil
[N][T][T][N][T]
What Is Credit Score And Its Impact On Loan Availability2023-03-27 |
cibil Cibil
[N][T][T][N][T]
Everything You Should Know About Your CIBIL Score2023-02-09 | 7 min
home+loan Home Loan
[N][T][T][N][T]
Section 80 EE: Claim Deductions on the Home Loan Interest Paid2023-02-17 | 6 min
home+loan Home Loan
[N][T][T][N][T]
Ways to Check Bajaj Housing Loan Account Numbers2023-01-19 | 3 min
home+loan Home Loan
[N][T][T][N][T]
Benefits of Submitting a Digital Home Loan Application in Current Times2023-02-17 | 4 min
home+loan Home Loan
[N][T][T][N][T]
10 Smart Steps for Effective Home Loan Management2023-02-17 | 5 min
home+loan Home Loan
[N][T][T][N][T]
10 Factors That Affect Your Home Loan Eligibility2023-01-09 | 7 min
home+loan Home Loan
[N][T][T][N][T]
What is Foreclosing a Home Loan? These are Some of the Do’s and Don’ts2023-01-17 | 6 min
home+loan Home Loan
[N][T][T][N][T]
Are Registration Charges Compulsory When You Opt for a Home Loan?2023-02-10 | 5 min
home+loan Home Loan
[N][T][T][N][T]
What Are the Pros and Cons of Home Loan Balance Transfer?2023-02-01 | 4 min
home+loan Home Loan
[N][T][T][N][T]
Five Important Factors to Keep in Mind When Prepaying Your Home Loan2023-01-17 | 6 min
cibil Cibil
[N][T][T][N][T]
How to Check CIBIL Score Online?2023-03-14 | 5 min
home+loan Home Loan
[N][T][T][N][T]
A Step-by-Step Guide to Home Loan Balance Transfer Application2022-12-20 | 6 min
home+loan Home Loan
[N][T][T][N][T]
How to Get a Better Interest Rate on Your Home Loan2023-01-04 | 5 min
home+loan Home Loan
[N][T][T][N][T]
What is the Difference Between Top-up Loan and Home Improvement Loan2023-01-11 | 5 min
home+loan Home Loan
[N][T][T][N][T]
Importance of an NOC Letter after Closing Your Home Loan2022-12-12 | 6 min
home+loan Home Loan
[N][T][T][N][T]
Factors to Consider Before Opting for Home Loan Balance Transfer2022-12-14 | 5 min
home+loan Home Loan
[N][T][T][N][T]
Top Things to Keep Track of While Doing a Home Loan Balance Transfer2022-12-18 | 7 min
home+loan Home Loan
[N][T][T][N][T]
All You Need to Know About Home Loans2023-01-19 | 5 min
home+loan Home Loan
[N][T][T][N][T]
What Is a Pre-Approved Home Loan and How Should You Get It Done?2023-11-15 | 5 min
cibil Cibil
[N][T][T][N][T]
Different Types of Credit Scoring Models You Must Know2023-03-16 | 5 min
cibil Cibil
[N][T][T][N][T]
How Do You Establish a Credit Score for the First Time?2023-03-22 | 6 min
cibil Cibil
[N][T][T][N][T]
How Can I Get My ECN Number in CIBIL?