If you are planning to buy a new house and have thought of applying for a home loan, there are certain things you need to be very clear about. Many individuals apply for a home loan at the time of buying a new home. All banks, as well as, financial institutions have certain terms and conditions, which need to be followed. Your application will be reviewed on stringent terms and there are a few factors, which will have an influence on your home loan eligibility.
What are home loan eligibility criteria’s?
- You must be a citizen residing in India.
- You must be a salaried individual with at least 3 years of experience.
- Salaried individuals between the age of 23 to 62 are eligible and can apply for a Home Loan.
As a salaried employee, your home loan eligibility will depend on your age. There will be a certain repayment tenure on the loan and your ability to repay the loan will highly depend on the same. An individual at the age of 35 is capable to make the loan repayment on time but the same cannot be said for an individual aged 65. There are home loan borrowers who are in different phases of their lives and they face different challenges. Banks will consider age when evaluating applications.
If you are a salaried employee with impressive academic credentials and work experience, the chances of the bank sanctioning your loan application are higher. If you have a couple of years of experience at the time of applying, your loan will be approved sooner. It reflects your ability to repay the loan in time.
Irrespective of you being a salaried employee or self-employed individual, your income will influence the decision of the financial institution to lend or not to lend. If you have a higher income, the lenders will be happy to give you funds. Most lenders have certain income criteria and you need to ensure you fall under the same. It will vary according to your profession and the home loan eligibility will be calculated based on the income you earn.
Your loan application will be influenced by the number of dependents you have. If you have more dependents on you, the chances of your loan application being approved are rather low.
You need to prove that you can take the extra burden of paying off the loan at the right time.
5. Employment type
Your home loan eligibility will depend on the type of employment you are in. It is important for the banks to know whether you are a salaried employee or a self-employed professional. The criteria will vary according to the type of employment you are engaged in. A lot of job changes can also have an impact on your prospects of getting a loan approved. It means you are unstable at your job and this shows a higher chance to default in the installments.
Further, your payment history and credit score will also make a difference to the application. Bajaj Finserv Home loan and many people who are keen on buying a new house tend to opt for the same. The entire process of application is quick and simple but you need to check home loan eligibility. You can even use our home loan eligibility calculator to know whether you are eligible for the home loan. There are different criteria lenders look into and as a salaried employee, you need to be able to show them that you have the ability to make timely repayment of the loan. A home loan will allow you to buy a house without having to break your savings. The loan is to be repaid in equal installments over the specified tenure in addition to the interest amount.
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