How to Qualify for a Home Loan – A Complete Guide for First-Time Buyers

Purchasing a home, whether it is your first or a step up to a larger property, is an important milestone. Before moving forward with property inspections or completing application forms, it is essential to determine if you are eligible for a Home Loan. A clear understanding of the Home Loan eligibility requirements, careful monitoring of your CIBIL score for a Home Loan, and timely action to improve Home Loan eligibility can significantly enhance the likelihood of a seamless approval process. 

Understanding the Basics – What Lenders Look For

When you apply for a Home Loan, the lender is essentially checking two things: your ability to repay and the property status. The first part is all about you—your income, credit profile, employment stability, and existing liabilities. The second is about the property itself—clear legal title, proper approvals, and valuation. 

Knowing the Home Loan eligibility requirements up front helps you prepare better. You need to meet the following criteria to apply for a Home Loan with Bajaj Housing Finance: 

Salaried Individuals

• Must be an Indian citizen (NRIs are also eligible) 

• Should be between 23 and 67 years** of age 

• Requires a minimum of 3 years of work experience 

Self-Employed Individuals

• Must be an Indian resident 

• Should be between 23 and 70 years** of age 

• Requires at least 3 years of business vintage  

**The upper age limit is considered as age at the time of loan maturity. Additionally, the upper age limit for applicants is subject to change, depending on the property profile. 

The Role of Your CIBIL Score in Home Loan Approval

Your credit score is like a numerical snapshot of your borrowing history. It tells the lender how you’ve managed loans and credit in the past. For most lenders, a CIBIL score of 750 or above is considered strong and can help you secure better terms. 

That’s why it’s worth checking your score before applying; if it’s lower than the ideal score, you can take steps to improve it before approaching a lender. 

How to Improve Home Loan Eligibility – Practical Steps

Improving your eligibility isn’t just about earning more—it’s about presenting a well-rounded financial profile. Here are some ways to do that: 

1. Reduce existing debts – If you’re already paying EMIs for other loans, consider closing smaller debts first. This lowers your debt-to-income ratio, which lenders assess carefully. 

2. Build a strong credit history – Make timely payments on all loans and credit cards. Even small defaults can reduce your credit score. 

3. Add a co-applicant – Applying jointly with a spouse or family member who has a stable income can increase the eligible loan amount. 

Checklist of Home Loan Documents You’ll Need</h2> 

While exact requirements may vary, here’s a list of documents*** required for a Home Loan: 

• Proof of identity and address (KYC documents), such as Aadhaar Card or Voter’s ID 
• PAN Card or Form 60 (mandatory) 
• Salary slips/Form 16 for salaried applicants/ITR, and profit & loss statements for self-employed applicants. 
• Bank statements for the last 6 months 
• Property documents with a clear legal title 

***This list is indicative.  

Also Read: List of Documents Required for Home Loan 

The Importance of a Clear Property Profile

The property you plan to purchase must also pass the lender’s checks. This means: 

• Approved building plans 
• No legal disputes 
• Proper registration and documentation 

The more you understand the Home Loan eligibility requirements, the better you can prepare. And with the right approach, you’ll find that qualifying for a Home Loan is easy.