Home Loan eligibility is best understood as a predefined set of criteria on the basis of which a financial institution determines the repayment capacity of a Home Loan applicant. These criteria can differ from institution to institution but the most common ones are factors such as age, salary, credit score, and more.
Finserv MARKETS makes it easy for all potential borrowers to determine their eligibility beforehand. It also helps an applicant to determine all the relevant details for their loan payments.
It is necessary to be informed of the specific criteria that influence your chances of approval. Here are the overall requirements an applicant must meet to ensure PNB housing loan eligibility:
The applicant must be a citizen of India.
In order to ensure PNB Home Loan eligibility, the applicant for the loan must be between the ages of 21 and 65 years. All in all, the borrower’s age should not be over 70 at the time of the loan’s maturity.
The applicant must be employed, whether salaried or self-employed, and must have a regular source of income. The minimum net salary requirement for PNB Home Loan eligibility is Rs. 18,000 per month. Moreover, in order to meet Punjab National Bank Home Loan eligibility criteria, salaried applicants must have an income history of over 3 years and self-employed applicants of over 5 years.
As is the case with most Home Loan applications across the board, the applicant must have a stable credit history and preferably a credit score of 750 or above.
Across the world, credit history is considered a standard and reliable way of assessing the creditworthiness of a borrower or credit applicant. One of the ways in which this creditworthiness is established for potential lenders is through a detailed report generated by credit information companies.
In India, this role is mainly played by the Credit Information Bureau (India) Limited, or CIBIL. When an individual avails credit from one or multiple sources, this information is collated by CIBIL and can be accessed by the individual and any future lenders in the form of CIBIL reports and CIBIL scores.
In order to ensure that you meet the PNB housing loan eligibility criteria, it is recommended to ensure that you have a CIBIL score of at least 650. However, your chances of approval significantly increase if you strive to maintain a CIBIL score that is 750 or above.
There are a number of factors that play a part in whether the loan application gets approved as well as how much loan amount will be sanctioned. Hence, it is best to be aware of these factors beforehand:
Applicants for the PNB Housing Loan are expected to be between the ages of 21 and 70 years. This is because Home Loan tenures can go up to as much as 30 years. Therefore, the lower your age, the more time you will have to pay off your Home Loan amount in the long run.
This factor of salary plays a part in PNB housing loan eligibility since the applicant’s net income essentially determines his or her repayment capacity after meeting essential expenses.
Similarly, the applicant’s employment status also has an essential influence since it means that they have a stable source of income and are, therefore, in a better position to efficiently pay off the entire Home Loan amount.
Lastly, most established financial institutions such as Punjab National Bank expect its loan applicants to not have too many pending debts and other serious financial obligations hanging over their heads. Hence, your financial history and current obligations also affect your loan approval chances.
The online eligibility calculator will help you get a better idea of your qualification for the Home Loan. However, you can also increase your focus on several financial aspects such as:
Improving Your CIBIL Score: By making due credit payments on time and eliminating debts on your account, you can significantly improve your CIBIL score and your chances of Home Loan approval.
Adding a Co-Applicant: You can also increase your PNB Home Loan eligibility by adding earning members of your family as co-applicants.
Choosing a Longer Tenure: The length of your Home Loan tenure, or the period during which you will make your Home Loan payments, can also be lengthened to increase your eligibility. The longer the tenure, the better the eligibility.
As is the case with most established financial institutions, your PNB Home Loan eligibility and application process is incomplete without collating and submitting the right set of documents. Here are the documents you will require:
Filled out loan application and passport size photographs
Proof of identity - such as passport, Aadhaar, voter ID card, PAN card
Proof of residence - such as latest electricity or telephone bills
Statement of Bank Account for the past 6 months
Income tax returns or Form 16 for the past 2 financial years (salaried employees)
Income tax returns for the past 3 financial years (self-employed professionals)
Receipt of property taxes
Personal assets and liabilities statement
The borrower must be:
- An Indian citizen
- Between 21 and 70 years of age
- Employed with a stable source of income (salaried or self-employed)
- Having a credit score of 650 or above.
The exact Home Loan amount disbursed depends on the salary as well as various other factors such as age, credit history, and financial obligations. You can use the Home Loan eligibility calculator to get a better idea of the Home Loan amount you might be eligible for.
The minimum salary required to meet PNB housing loan eligibility is Rs 18,000 per month.