Check Home Loan Eligibility

Home Loan Eligibility Criteria

Buying a house through loan comes with several tax benefits. These helps in managing cash flow along with reduction to taxes. It is up to the borrower to decide the type of loan that is required. Also, it is essential to be aware of all criteria before applying for a home loan. Home loan money can be used for any purpose like construction of a new house, renovation, purchasing a new or used house. Irrespective of the applicant’s occupation or profession, there is a need to check eligibility before approaching banks and this can be done through online with a help of few clicks.

Factors That Decide Applicant’s Eligibility for Home Loan

Every bank that offers loan will look into many criteria prior to sanctioning it. Among the long list of factors, few important ones are:

  • Employment Stability: It’s a crucial aspect for home loan consideration. Unless the applicant is salaried and employed for at least 2 years in the current profession or if the applicant is self-employed with minimum 5 years of total earnings loan will not be processed.
  • Age Criteria: The younger the applicant is there is more probability of getting loan. Most banks offer home loan for salaried employees only if they are between the age group of 20 to 60 years. However for self-employed this will change to 24 to 65 years.
  • Credit Rating: Apart from the applicant’s company’s performance, individual credit rating has a lot of importance. Good credit rating will increases the chance of getting the loan with more flexibility on loan amount, EMI, tenure and interest rates. Default payment records, fraudulent tracks, and outstanding loan, will reflect negatively on the applicant, this could lead to bank’s cancelling the loan request or will charge high rate of interest.
  • Employer: If the applicant is working with an employer who has high reputation and impressive turnover, the credibility of the applicant will respectively increase. Being a part of reputed and high turnover companies is an asset for the applicant especially when it comes to applying for home loan.
  • Financial Situation: For this factor, not just present status is considered, the past records of financial stability holds lot of value in deciding the eligibility for home loan. It is a key to success in all fields if you have good financial records, this can decide the interest rate percentage, loan amount and tenure when applying for loan.
Eligible Criteria Salaried Self-employed Professionals
Age (Min-Max) 24-60 24-65
Income 1,80,000 1,50,000
Preference Bank account holders preferred Current or saving account with the bank from where loan is applied is preferred.
Co-applicant Not mandatory – but should be family members Not mandatory – but should be family members
Employment Fulltime job with at least 2 years of experience At least 45 years of experience with good turnover
Documentation Bank Account Statement/ Latest Telephone Bill/ Latest Credit Card Bill/ Latest Electricity Bill/ Employers letter certifying current mailing address/Passport(Valid)- provided the passport address is present address mentioned in application form/ Government I-card with photo / Existing Registered House Lease Bank Account Statement/ Latest Telephone Bill/ Latest Electricity Bill/ Latest Credit Card Bill/ Passport(Valid)/ Employers letter certifying current mailing address
CIBIL Required 750 or above Required 750 or above

Banks’ Methods of Calculating Eligibility for Home Loan

There is no doubt, at the beginning every bank says it can offer 30 times of your net income, this makes the applicant exciting. But when loan is being processed, things change. The eligible loan amount will fall; too many other criteria will have a call on the loan amount and interest rate decision. It is advisable to be aware of how banks calculate home loan eligibility. Nothing is rocket science, it’s all merely Maths calculation and here it goes. Net income is the total of Basic salary, HRA (House rent allowance), Medical allowance, LTA (Leave travel allowance), Performance bonus, Special allowance, Conveyance allowance, PF, Food coupons, and any other allowance. But only few of these are considered when it comes to home loan net income calculation. This is the first and basic reason things change while loan is getting processed.

Banks exclude LTA and medical allowance while calculating net income. Thus the calculation is Net income minus (LTA+ medical allowances amount) = New net pay. The other expenses to be considered while purchasing a house through loan are the sources of fund for stamp duty and registration charge. It is essential to be mindful that this charge is calculated on the super built up area and not-built up area.

To put this into few simple steps:

Step 1: Bank will look into your salary slips and banks statements to calculate the income level
Step 2: It then calculates the amount that is saved, bank usually assumes 30% of your income as savings, say your income is ₹ 50,000, and then saving is ₹ 15,000.
Step 3: If there are existing loans EMIs it will be reduced from the income
Step 4: Banks do a backward calculation to understand how much loan amount can be offered according to the saving amount determined

Comparison of Home Loan Eligibility Criteria across different Banks/NBFCs

The top 3 banks that offer home loan in India are SBI, ICICI and Axis. Loan eligibility criteria for each of these providers differ according to various factors. Some of these criteria are listed below:

SBI Home Loan Eligibility Criteria

SBI offers home loan only post thorough scrutiny of the applicant’s request. It has fast approval processes with minimal and easy documentation. The list for the same is here:

Eligibility:

Criteria Salaried Self employed
Age 18 years to 70years 21 years to 70years
Income Rs.1,20,000 (p.a.) Rs.2,00,000 (p.a.)
Loan Amount Offered 5,00,000 - 1,00,00000 5,00,000 - 2,00,00000
Tenure 5years-20years 5years-20years
Current Experience 2years 3years
  1) Identity & residence proof 1) Identity & residence proof
  2) Application form with photograph 2) Application form with photograph
  3) Form 16 3) Education qualifications certificate & proof of business existence
Documentation 4) Last 3 months salary slip  4) Business profile
  5) Processing fee cheque 5) Last 3 years profit/loss & balance sheet
  6)  Last 6 months bank salaried credit statements 6) Processing fee cheque
    7) Last 6 months bank statements
  1) Identity & residence proof 1) Identity & residence proof
  2) Application form with photograph 2) Application form with photograph
  3) Form 16 3) Education qualifications certificate & proof of business existence
Documentation 4) Last 3 months salary slip  4) Business profile
  5) Processing fee cheque 5) Last 3 years profit/loss & balance sheet
  6)  Last 6 months bank salaried credit statements 6) Processing fee cheque
    7) Last 6 months bank statements
CLR Rate for 1 Year 9.10% Base Rate 9.30%
Repayment period 5 - 30 Years Processing Fees 0.25% or Max. Rs.10000
Age Eligibility Factor 18 – 70 years Balance Transfer Pro. Fee 0% till 30 Sep 2016
Min. Income for Salaried 10000 p.m. Min. Income for Self Employed 16500 p.m.
Max Loan amount upto 30 Lakh property value 27 Lakh Max. loan amount above 30 Lakh 80 - 85%
Interest Rates for women 9.30%
Interest Rates for Others 9.35%
Interest Rates for Women above 10 million 9.65%
Interest Rates for others above 1 million 9.70%
Minimum EMI per 1 Lakh 826 for women, 830 for others

ICICI Home Loan Eligibility

It is possible to get home loan with just 15-20 days from this bank if you have all necessary documentation and if you meet all criteria. This bank offers competitive pricing and also maintains transparent process.

Eligibility:

  • Aged between 21-65 years
  • Minimum 2 years of total work experience with regular source of income
  • Co-applicant minimum age limit is 18 years

Documents Required

Documents Salaried Self Employed Self-Employed Non Professional

Application form with photograph duly signed

Yes

Yes

Yes

Identity, residence and age proof

Yes

Yes

Yes

Last 6 months bank statements

Yes

Yes

Yes

Last 3 months Salary-slips

Yes

Yes

Yes

Processing fee cheque

Yes

Yes

Yes

Form 16 / Income Tax Returns

Yes

Yes

Yes

Proof of business existence

   

Yes

Business profile

   

Yes

Education qualification certificate and proof of business existence

 

Yes

Yes

Last 3 years Income Tax Returns with computation of Income

 

Yes

Yes

Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account

 

Yes

Yes

Axis Bank Home Loan Eligibility

If you are looking for a bank that offers fast service with less interest rate, this is the best option. It is very transparent and flexible in its eligibility criteria.

Eligibility:

Employment Type Eligibility Criteria
Salaried Individuals Government employees or individuals in reputed companies.
Minimum Age - 24 years
Maximum Age - 60 years at the time of loan maturity
Professionals Professionals - Doctors, Engineers, Dentists, Architects, Chartered Accountants, Cost Accountants, Company Secretary, Management Consultants only
Minimum Age - 24 years
Maximum Age - 65 years at the time of loan maturity
Self Employed Individuals All tax filing individuals
Minimum Age - 24 years
Maximum Age - 65 years at the time of loan maturity

Documents Required

Purpose Salaried Self Employed
Proof of Identity and Address Passport or Voter's ID card or Driving License or Job Card issued by NREGA or Aadhaar Card or PAN card (PAN Card only as identity proof) or any other document as acceptable to the Bank  
Proof of income Latest 3 Months salary slip showing all deductions and Form 16 IT returns for the last 2 years and computation of income for the last 2 years certified by a CA
Bank statement or Pass Book where salary or income is credited Last 6 months Last 6 months
Guarantor form Optional Optional

Bajaj Finance Home Loan Eligibility Criteria

If you are looking for the home loan which has flexible rules when it comes to the repayment of the loan than Bajaj Finserv is the right choice for you. Bajaj Finance offers the home loan with the advantage of part payment & fore closure. Following is the eligibility criteria for applying for the home loan through Bajaj Finance:

Eligibility Criteria

There are two important factors when it comes to the eligibility for Bajaj Finance home loans. First the applicant should be in the position to repay the loan. Secondly, the credit worthiness of the applicant which can be checked through the employer of the salaried applicant & through the business stability in case of self-employed & businessmen. Following is the eligibility criteria in terms of income for a salaried applicant:

Minimum Income (Monthly) Place of Residence

₹ 60000

Thane, Delhi /NCR and Mumbai

₹ 45000

Chennai and Bangalore

₹ 45000

Pune, Ahmedabad, Hyderabad and Kolkata

₹ 35000

Coimbatore, Surat, Aurangabad, Vadodara, Jaipur & Nashik

Documents Required

  • Valid identity proof (passport/ voter’s ID/ driving license/ PAN card/ Aadhar card)
  • Valid address proof (latest utility bill/ ration card/passport)
  • Valid age proof (PAN card/Passport/ Driving License/ Voter id card/ Birth certificate/ Employee ID card /School/ college leaving certificate)
  • Valid proof of business in case of business holder applicants (PAN card/sales tax/ excise/ VAT/ service tax registration/Copy of partnership deed/ Trade license/ certificate of practice/ registration certificate issued by RBI, SEBI)

Capital First Home Loan Eligibility Criteria

Capital first offers home loan to the people who want money to purchase a house, home renovation and home extension etc. The house itself acts as a security to the loan.

Eligibility Criteria

  • age of the applicant pays an important role when applying for the home loan as the tenure of repayment of home loan is very high
  • For the salaried employee the place where they work & the stability at the job plays an important role when it comes to Capital first home loan. For the self-employed or business professional the turnover of the business will depict the stability of business.
  • Capital first also consider the CIBIL score for applying for home loan.

Documents Required

  • Filled application form for personal loan
  • 2 Passport Size Photo
  • Identity Proof: Valid Identity Proof (Passport/ Voter’s ID/ Driving License/ PAN Card/ Aadhar Card)
  • Address Proof: Valid Address Proof (Latest Utility Bill/ Ration Card/Passport)
  • Document of Income: Salary slip of last 3 months, 6 months bank statement, form 16 of current year & the offer letter of current employer in case of salaried person. In case of self-employed income tax return & profit & loss & balance sheet of last 2 years, last 6 months bank statement & business proof.
  • Additional Proof for Self-Employed Professionals: Additional proof for self-employed required are ( sole proprietorship declaration/ partnership form)

Citibank Home Loan Eligibility Criteria

Citi bank offers the home loan at very competitive interest rate. They have 24*7 customer support for the assistance of home loan. Online application option is also available.

Eligibility Criteria

  • The age of applicant should be of at least 23 years. The maximum limit of the age is 65 years
  • The salaried applicant should be working in a reputed private company or a government company. Minimum work experience for the salaried applicant is 2 years
  • Last 2 years Income tax returns should be filed by the applicant

Documents Required

  • Proof of identity (passport/ voter’s ID/ driving license/ PAN card/ Aadhar card)
  • Proof of address (latest utility bill/ ration card/passport)
  • Proof of income (Salary slip of last 6 months, 6 months bank statement, form 16 of current year)

HDFC Bank Home Loan Eligibility Criteria

HDFC bank is a global bank with the headquarters in Mumbai. The bank has been ranked in the top 100 Most Valuable Global Brands. HDFC is trusted name amongst the customers. The bank offers variety of home loans like new home loans, resale home loans & loans for constructing the home. HDFC offers the home loan with no hidden charges.

Eligibility Criteria

  • The minimum age of the applicant should be at least 24 years. The maximum age of the applicant can be 65 years in case of self- employed. The maximum age limit for salaried is 60 years.
  • A salaried applicant should have at least two years of work experience. A self-employed applicant should have 4 years of work experience with good turnover.
  • CIBIL score of the applicant should be above 750.

Documents Required

Criteria Salaried Self-employed

Identity Proof

Passport/ Voter’s ID/ Driving License/ PAN Card/ Aadhar Card

Passport/ Voter’s ID/ Driving License/ PAN Card/ Aadhar Card

Resident Proof

Latest Utility Bill/ Ration Card/Passport

Latest Utility Bill/ Ration Card/Passport

Income Proof

  • Salary slips of the latest three months
  • Form number 16 to validate the income
  • Income Tax Returns
  • Bank statement of the latest six months
  • Income tax returns for the last three years
  • Balance sheet of the last three years to gauge profit and loss, validated by the CA/CS
  • Current account statement of the business firm of 6 months
  • Savings account statements of all the applicants of 6 months
  • Form number 26as for income tax filing

IndusInd Bank Home Loan Eligibility Criteria

The bank is providing affordable home loan & the customer service is commendable. The repayment tenure of Indusland bank is quite wide compare to other banks & financial institutes.

Eligibility Criteria

  • The maximum loan amount offered would not exceed 80% market value of the property
  • The applicant should be either a salaried person or a self-employed with the regular income earnings
  • A salaried applicant must have at least two years of work experience.
  • The tenure of re payment of the loan depends upon the age of applicant
  • Maximum age limit is 70 years for self-employed & 60 years for salaried person.

Documents Required

Document Type Salaried Employees> Self-employed Professionals

Application Form

Filled application form with 2 passport size photographs.

Filled application form with 2 passport size photographs.

Identity Proof

Passport/ Voter’s ID/ Driving License/ PAN Card/ Aadhar Card

Passport/ Voter’s ID/ Driving License/ PAN Card/ Aadhar Card

Resident Proof

Latest Utility Bill/ Ration Card/Passport

Latest Utility Bill/ Ration Card/Passport

Education Proof

NA

Education certificates

Income Proof

  • Salary slips of the latest three months
  • Form number 16 to validate the income
  • Income tax returns
  • Bank statement of the latest six months
  • Income tax returns for the last three years
  • Balance sheet of the last three years to gauge profit and loss, validated by the CA/CS
  • Current account statement of the business firm of 6 months
  • Savings account statements of all the applicants of 6 months
  • Form number 26as for income tax filing

Kotak Mahindra Bank Home Loan Eligibility Criteria

The process of home loan application is easy & hassle free when it comes to Kotak Mahindra bank. Approval of the loan is simple & loan amount can be disburse in 4-5 days. Online application option is also available.

Eligibility Criteria

Particulars Salaried Employees Self-employed Professionals

Age

21 - 60 years

21 – 65 years

Income

₹ 480,000 per annum

₹480,000 per annum

Repayment tenure

5 - 25 years

5 - 25 years

Work experience

2 years

3 years

Documents Required

Document Type

Salaried

Self-employed

Application Form

Filled application form with 2 passport size photographs.

Filled application form with 2 passport size photographs.

Identity Proof

Passport/ Voter’s ID/ Driving License/ PAN Card/ Aadhar Card

Passport/ Voter’s ID/ Driving License/ PAN Card/ Aadhar Card

Resident Proof

Latest Utility Bill/ Ration Card/Passport

Latest Utility Bill/ Ration Card/Passport

Income Proof

  • Salary slips of the latest three months
  • Form number 16 to validate the income
  • Income tax returns
  • Bank statement of the latest six months
  • Income tax returns for the last three years
  • Balance sheet of the last three years to gauge profit and loss, validated by the CA/CS
  • Current account statement of the business firm of 6 months
  • Savings account statements of all the applicants of 6 months
  • Form number 26as for income tax filing

PNB Housing Finance Ltd Home Loan

PNB has the housing finance section that caters to variety of needs when it comes to home loan. The name of the brand itself is a great proof of its expertise in housing finance. PNB has many different types of loan option available when it comes to home loan like home purchase loan, home construction loan, home extension loan, home improvement loan, home loans for NRIs etc.

Eligibility Criteria

  • The applicant should be either a salaried person or a self-employed with the regular income earnings
  • A salaried applicant must have at least two years of work experience.
  • Maximum age limit is 70 years at the time of maturity of the loan.

Documents Required

Document Type Indian Resident NRI

Application Form

Filled application form with 2 passport size photographs.

Filled application form with 2 passport size photographs.

Identity Proof

Passport/ Voter’s ID/ Driving License/ PAN Card/ Aadhar Card

Passport/ Voter’s ID/ Driving License/ PAN Card/ Aadhar Card

Resident Proof

Latest Utility Bill/ Ration Card/Passport

Latest Utility Bill/ Ration Card/Passport

Income Proof

  • Salary slips of the latest three months
  • Form number 16 to validate the income
  • Income tax returns
  • Bank statement of the latest six months
  • Proof of shop or firm establishment (for businessmen)
  • Office address Proof (for businessmen)
  • Passport Copy
  • Work Permit copy (if applicable)
  • Last three months’ salary slips
  • Appointment letter issued by current employer
  • Last two year’s income statement testified by the employer
  • Last 6 months bank statement for regular salary

Standard Chartered Bank Home Loan Criteria

Standard chartered is a global bank with the branches in 70 different countries across the globe. If you are looking forward for low finance home loan with less processing charges than this is one if definitely for you.

Eligibility Criteria

  • The minimum age of the applicant should be at least 21 years. The maximum age of the applicant can be 60 years.
  • An applicant must have at least two years of work experience
  • Annual salary of the salaried applicant should be at least ₹ 480,000. Minimum yearly earnings in case of self-employed should be at least ₹ 600,000.

Documents Required

Document Type Salaried Employees Self-employed Professionals

Application Form

Filled application form with 2 passport size photographs.

Filled application form with 2 passport size photographs.

Identity Proof

Passport/ Voter’s ID/ Driving License/ PAN Card/ Aadhar Card

Passport/ Voter’s ID/ Driving License/ PAN Card/ Aadhar Card

Resident Proof

Latest Utility Bill/ Ration Card/Passport

Latest Utility Bill/ Ration Card/Passport

Income Proof

  • Salary slips of the latest three months
  • Form number 16 to validate the income
  • Income tax returns
  • Bank statement of the latest six months
  • Income tax returns for the last three years
  • Current account statement of the business firm of 6 months
  • Form number 26as for income tax filing

Tata Capital Home Loan Eligibility Criteria

TATA capital is known to provide customize home loans to their customers depending upon the need of the customers. They have number of home loans including the home loan, home construction loan, home renovation loan etc. the range of repayment tenure is as wide as 30 years.

Eligibility Criteria

  • The applicant must be a citizen of India
  • The minimum age of the applicant should be at least 24 years. The maximum age of the applicant can be 65 years of age

Documents Required

Document Type Salaried Employees Self-employed Professionals

Application Form

Filled application form with 2 passport size photographs.

Filled application form with 2 passport size photographs.

Identity Proof

Passport/ Voter’s ID/ Driving License/ PAN Card/ Aadhar Card

Passport/ Voter’s ID/ Driving License/ PAN Card/ Aadhar Card

Resident Proof

Latest Utility Bill/ Ration Card/Passport

Latest Utility Bill/ Ration Card/Passport

Education Proof

NA

Education certificates

Income Proof

  • Salary slips of the latest three months
  • Form number 16 to validate the income
  • Income tax returns
  • Bank statement of the latest six months
  • Income tax returns for the last three years
  • Balance sheet of the last three years to gauge profit and loss, validated by the CA/CS
  • Form number 26as for income tax filing

 

Ways to Improve Eligibility for Home loan:

  • Identify credit score reductions reason, it could be because of credit card late payments or loan EMIs defaults, etc. Defaulting and late payment is the core factor for bad credit scores thus it is essential that every individual should maintain a good track record.
  • Never default payments in future. Make all payments on time and keep sufficient balance in your bank account for ECS transactions.
  • Continuous rejection of Credit cards and personal loans will lead to drop in the CIBIL scoring, at these situations give it a break. This will help in gradually increasing the credit worthiness of the individual.

Apart from these, having good relationship with the bank manager is an add-on. Every branch manager has discretionary rights to alter loan requirements. Strive to maintain a good financial track record, to enjoy home loan benefits.