Home Loan Eligibility Guide for Beginners

The need for a home loan generally arises for buying a house, renovating, or constructing one. It ensures that you do not have to break your investments and savings or postpone other essential financial goals like children’s higher education or retirement.

A home loan has many features and benefits. But, to be able to receive a loan, you need to meet certain eligibility criteria.

What is home loan eligibility?

To qualify for a housing loan, you need to fulfill certain parameters or requirements. These ensure that you can repay the loan amount without any difficulty and any default. If you don’t meet the eligibility criteria, it will lead to the rejection of your loan application. Consequently, your credit profile will have a negative mark. Thus, for fast and smooth completion of the loan process, make sure that you meet the required eligibility criteria.

Your eligibility for the loan depends on your repayment capacity and the price of the property you intend to purchase or construct. A vital aspect of home loan eligibility is that you must have a regular source of income, and your EMI should be 40% to 45% of your income.

Factors affecting home loan eligibility

  1. Age: The first factor that banks or Non-Banking Financial Companies (NBFCs) consider when they receive a housing loan application is the applicant’s age. Financial institutions try to limit the house loan tenure to the individual’s age of superannuation. So, a young professional in his 20s and early 30s can easily avail of a loan with a tenure of up to 25 years. But, older applicants, particularly those above the age of 40 years, face challenges to enjoy an extended tenure. 
  2. Income: Loan applicants can be salaried, professional, or self-employed individuals. It is vital to have a steady source of income to be eligible for a loan. Depending on the category, you will have to submit payslips, form 16, bank statements, employer reference letters, ITR papers, rent receipts, and more. 
  3. Home loan interest rates: The eligibility for home finance is inversely proportional to the rate of interest. It is easier to get a loan with a lower rate of interest. 
  4. Loan tenure: The eligibility for a loan improves if you choose a longer loan term. The EMI is also lesser. However, you pay more interest. You can use the home loan calculator to check for the difference in the EMI amount with varying loan tenures.
  5. CIBIL score: The Credit Information Bureau India Limited maintains detailed records of information regarding your credit history. Banks use this information to determine your eligibility.

In conclusion

When you approach a lender, you must keep some parameters in mind. Several lenders in the financial marketplace offer competitive interest rates, and the home loan solutions are tailor-made to meet the demands of different borrowers. You can choose the housing loan amount, tenure, and the EMI period as per your requirements. The home loan EMI calculator provides all the required details to help you plan your loan repayment.

Apart from this, you can also read EntertainmentTech, and Health-related articles here: MovieRulzSex Education season 3NFL Live StreamYoutbeBailey Sarian Net WorthBollyshareAfdahSamsung Galaxy F22 Review1616 Angel Number444 Angel NumberMoviezwapY8JalshamoviezWebsite traffic checkerProject Free TVKickassanime777 Angel NumberSeptember 8 ZodiacKissasian666 Angel Number333 Angel NumberHoliday SeasonSamsung Galaxy Z Flip 3 reviewPUBG Launch Date in IndiaSears Credit CardGoDaddy EmailFree Fire Redeem CodeMangagoJio RockersNew iPhone 13Vivo Y53s ReviewEye ShapesM4uHDFever DreamMoon wateriPhone HeadphonesSpanish MoviesHip dips,  M4ufreeNBAstreams XYZCCleaner Browser reviewAvocado CaloriesBear Grylls net worthRihanna net worth 2021Highest Paid CEOThe 100 season 8Sundar Pichai net worthGrimes net worthF95Zonehow to change Twitch nameSherlock Season 5Homeland Season 9.

Subscribe to Our Latest Newsletter

To Read Our Exclusive Content, Sign up Now.
$5/Monthly, $50/Yearly


Microsoft CEO Satya Nadella Testifies About Competing With Google in Antitrust Trial

According to rival Microsoft, when it comes to online...

Navigating Through Shopify Salesforce Connector: A Detailed Tutorial

In the digital age, achieving synergy between different platforms...

Google Bard Prepares New ‘Memory’ Feature to Improve Personalization

As the world of AI evolves, Google appears to...

How to Stream the Google Pixel 8 Event Live Tomorrow

The major question right now is if Google has...

Top 25 Most Exciting Android 14 Features [Detail Guide]

Are you curious to explore the latest Android 14...