Axis Bank Home Loan Eligibility

Axis Bank is one of the largest Public Sector Undertaking Banks in India. It offers an extensive range of financial services and provides Home Loans at attractive rates. Headquartered in Mumbai, the bank’s extreme customer centric approach has made it one of the top banks in the nation.

Home loan eligibility criteria for Axis bank

For salaried applicants

The maximum Home Loan amount provided by Axis Bank to salaried employees is Rs.5 crore. The applicant must be at least 24 years of age while applying and shouldn’t be over 60 years of age. The maximum Loan to Value (LTV) is 85% of the cost of property. Salaried applicants must have a minimum work experience of at least 2 years.

For self employed applicants

The maximum Home Loan amount provided by Axis Bank to self-employed applicants is Rs.5 crore. The applicant must be at least 24 years of age while applying and shouldn’t be over 65 years of age. The maximum Loan to Value (LTV) is 85% of the cost of property. Self-employed applicants must have a minimum work experience of at least 5 years.

Axis bank home loan eligibility based on age

While applying for a Home Loan, your age plays an important role in determining your eligibility. This is due to the fact that an applicant who’s younger has more time to repay the loan and therefore more chances of receiving a Home Loan. The maximum tenure for a Home Loan from Axis bank is 30 years. This is also subject that the borrower’s age must not exceed the maximum age during the tenure of the loan. The maximum tenure of a loan is as mentioned below.

Since the applicant should be able to pay off the loan before he / she reaches the maximum age, the older the applicant, the lesser time he / she has to repay the loan.

Axis bank home loan eligibility based on income

Quite naturally, an applicant’s income is a major factor that a bank takes into consideration to determine his / her eligibility. Your income after all the deductions is a guiding tool for banks in assessing your repayment capacity, i.e., how much Equated Monthly Income (EMI) you will be able to pay. The higher your income, the better your repayment capacity and vice versa. For a house valued at Rs.50 lakh, the maximum loan amount, based on income, that an applicant is eligible for is as follows.

Home loan eligibility for Axis bank based on employment

Axis Bank also assesses Home Loan applications based on the nature of the borrower’s employment. Primarily, lenders usually look at the stability of an applicant’s income and the years of experience he / she has. Salaried individuals must have a minimum income history and of at least 2 years, while self-employed applicants must have at least 5 years of experience.

Axis home loan eligibility based on property value

Like most banks, Axis Bank doesn’t finance the entire property. The maximum loan that an applicant is eligible for depends on the value of the house as mentioned below.

Factors that affect home loan eligibility

• Co-applicant – Adding an earning co-applicant would increase one’s chances of attaining a Home Loan. The total income of the applicants would be considered which will therefore increase the loan amount eligibility as well.
• Property Documents – Property documents must be approved by the bank’s legal team before you’re eligible for the Home Loan.
• Credit Score – This is by far the most prominent determinant of eligibility when it comes to Home Loans. Credit Bureaus track all your financial history from your past loans and credit cards. They then analyse this data and equate it to a number between 300 and 900. The higher your credit score, the better your chances of availing the loan. The minimum score required to be eligible for a Home Loan is 650 and above. Factors that Affect Your Credit Score is mentioned below:
  • Late payments – Paying the EMI late will adversely affect your Credit Score and thereby reduce your chances of availing a Housing Loan.
  • High unsecured credit – More number of unsecured loans will have a negative impact on your Credit Score. It is important to always maintain a healthy balance between your secured and unsecured loans.
  • High credit utilization ratio – Frequently closing in on your credit limit or using up your credit limit will negatively impact your Credit Score. A high credit utilization ratio reflects a financial burden or indiscipline on the borrower’s part.
  • Multiple loan rejections – Multiple loan rejections portray that you are not worthy for credit. This will also negatively impact your credit score.