In today’s world, almost everyone opts for a home loan when it comes to buying a house. Bankbazaar allows you to calculate the home loan eligibility at ease, by simply entering a few basic details about yourself like salary, city of residence, employment type, etc. Here are the minimum eligibility requirement for home loan.
|Age Limit||18 – 70 years|
|Annual Income||Depending on the type of employment|
|Employment Status||Salaried or Non-Salaried|
|Residence Type||Permanent resident or Non-resident Indian (NRI)|
|Credit Score||Above 750|
|Property Type||Completed Project, Under Construction Project, Land/Plot, build on own Land, Buy Land and Build Home|
Note:Loan eligibility criteria differ depending on a bank/lender. Approvals are based on borrowers' incomes, credit profile and existing relationship with the bank.
|Home Loan Providers||Max Eligible Loan Amount||Loan Tenure||Age Limit|
|SBI Home Loan||No fixed amount specified||Up to 30 years||18 – 70 years|
|HDFC Home Loan||Up to Rs.10 crore||Up to 30 years||24 to 60 years|
|ICICI Home Loan||Up to Rs.10 crore||Up to 30 years||21 to 60 years|
|Axis Home Loan||Starts at Rs.3 crore||Up to 30 years||21 to 60 years|
|Indiabulls Housing Finance||Up to Rs.3 crore||Up to 30 years||21 to 65 years|
|DHFL Home Loan||Up 90% of the market value||Up to 30 years||18 to 70 years|
|PNB Housing Finance||Up 90% of the market value||Up to 30 years||18 to 70 years|
|Kotak Mahindra Home Loan||Up to Rs.5 crore||Up to 20 years||18 to 65 years|
|Karnataka Home Loan||Up to Rs.5 crore||Up to 30 years||18 to 65 years|
|Yes Bank Home Loan||Up to Rs.5 crore||Up to 35 years||21 to 60 years|
|LIC Housing Finance||Starts at Rs.1 lakh||Up to 30 years||21 to 60 years|
|Sundaram Home Finance Limited||Up to Rs.5 crore||Up to 20 years||18 to 65 years|
|DBS Home Loan||Up to Rs.5 crore||Up to 20 years||21 to 60 years|
|Aditya Birla Capital Housing Finance||Up to 75% of the property value||Up to 30 years||21 to 70 years|
|IDFC Home Loan||Up to Rs.10 crore||Up to 30 years||21 years and above|
|Federal Home Loan||Up to 15 crore||Up to 30 years||21 to 60 years|
|Andhra Home Loan||Based on repayment capacity||Up to 30 years||21 to 65 years|
|Dhanlakshmi Home Loan||Up to 80% of the property value, subject to your income eligibility.||Up to 30 years||21 to 60 years|
|BoB Home Loan||Up to Rs.10 crore||Up to 30 years||21 to 70 years|
|BoI Home Loan||Up to Rs.3 crore||Up to 30 years||21 to 60 years|
|Bank of Maharashtra Home Loan||Up to Rs.30 lakh||Up to 30 years||21 to 60 years|
|Canara Home Loan||Up to Rs.10 crore||Up to 30 years||21 to 55 years|
|IDBI Home Loan||Up to Rs.10 crore||Up to 30 years||22 to 70 years|
|Indian Overseas Home Loan||Depends on the applicant’s age and repayment capacity.||Up to 30 years||21 to 60 years|
|Karur Vysya Home Loan||Up to Rs.5 crore||Up to 25 years||21 to 60 years|
|South Indian Home Loan||Rs.2 lakh to Rs.15 crore||Up to 30 years||21 to 75 years|
|Tamilnad Mercantile Home Loan||Up to Rs.5 crore||Up to 30 years||18 to 50 years|
|CBI Home Loan||Depending on repayment capacity of borrower and value of property.||Up to 30 years||18 to 60 years|
|India Shelter Finance Corporation||Starts at Rs.5 lakhs||Up to 20 years||21 to 65 years|
|Aavas Financiers Home Loan||Starts at 1 lakh||Up to 30 years||18 to 65 years|
|Reliance Home Finance Limited||Starts at Rs.35 lakh||Up to 20 years||21 to 60 years|
|Tata Capital Home Loan||Rs.2 lakh to Rs.5 crore||Up to 30 years||24 to 65 years|
|Jammu and Kashmir Bank Home Loan||Depending on factors like income, repaying capacity, age, assets and liabilities, cost of the proposed house/flat etc.||Up to 30 years||21 to 60 years|
Use the home loan eligibility calculator to check which are the banks you are eligible for a home loan. You can easily compare and choose the best home loans with the help of the home loan eligibility calculator available on BankBazaar.
The process is simple and only basic details will need to be entered. The step-by-step procedure to check your eligibility via BankBazaar.com is mentioned below:
Using the eligibility calculator provided by BankBazaar.com simplifies the application process as you can check for the home loans you are eligible for. It is easy to compare home loan rates for all banks and apply the one that suits your requirements.
Eligibility is not an easy thing to assess. The banks and lenders will be considering your present liabilities, income, assets, etc. while calculating your home loan eligibility. In case the mortgage requirement is slightly higher that the eligible loan amount, some changes in the way you present yourself can help in increasing the eligibility factor. Tips to increase your eligibility for a home loan are mentioned below:
Let us consider that Chandra has no loans or liabilities at present and his net available income is Rs.1,03,400. However, you one must always remember that Leave Travel Allowance is not taken into consideration by the bank while calculating the salary. The medical allowance is also excluded from the calculation. This is because, these expenses are not derived by an individual with his/her salary. In this case, Chandra will only get these amounts as reimbursements, in case he spends on medical needs or travel requirements.
Thus, the bank or the lender will deduct that LTA and medical expenses from the net income. Chandra’s net income now stands at Rs.1,03,400 – Rs.(9,000 + 2,000), which is equal to Rs.92,400. Thus, the loan eligibility for Chandra Patra stands at Rs.92,400 x 60 = Rs.55,44,000. In case of a home loan, EMI is restricted to a maximum of 40% to 50% of the net income (monthly) by most banks. This suggests that you are eligible for a home loan where the equated monthly instalment is not more than 50% of your monthly income.
The home loan amount that you are eligible for is dependent on a few factors such as your credit score, credit history, rate of interest, loan repayment tenure, the value of the property, and so on. The loan amount might vary from lender to lender.
Let us take an example. If the loan repayment tenure is assumed to be 30 years and the rate of interest is assumed to be 8.25% p.a., the eligible loan amount will be as follows-
|Salary||Eligible Loan Amount||EMI Amount|
|Rs.25,000||Rs.13,31,085||Rs.10,000 per month|
|Rs.30,000||Rs.17,96,965||Rs.13,500 per month|
|Rs.50,000||Rs.29,94,942||Rs.22,500 per month|
|Rs.75,000||Rs.49,91,570||Rs.37,500 per month|
|Rs.1 lakh||Rs.66,55,427||Rs.50,000 per month|
The figures mentioned above have been compiled from a partner bank and are subject to change from lender to lender.2. How to apply for a subsidy on my home loan?
The Government of India has launched a housing scheme with the view of building a pucca house for every Indian household by the end of 2022. As per the scheme, known as the ‘Pradhan Mantri Awas Yojana’, if an individual meets the prescribed criteria, he or she will be eligible for a subsidy on the home loan interest rate.3. Is it mandatory to have a co-applicant while applying for a home loan?
Although there is no mandate for having a co-applicant for a home loan in India, most of the lenders (both public and private) insist on having one to ensure the guarantee in regard to the repayment of the loan amount. In addition to that, having a co-applicant while applying for a home loan will also boost your eligibility. Nevertheless, it should be kept in mind that there is no legal requirement for having a co-applicant when applying for a home loan.4. What is meant by the market value of a property?
The price of a property which is agreed upon by both the seller and a buyer for a transaction is called the market value of that property. In easier terms, the price of the property at which the seller is ready to sell the property and a buyer is ready to purchase the property is the market value of the property.5. What is the process of disbursement in case of home loan for the purchase of an under-construction property?
In the case of under construction property, the loan amount is disbursed by the lender in instalments and is based on the assessment of the lender and not the developer. The loan amount is disbursed on the basis of the progress of the construction of the property.6. What are the eligibility requirements for NRI applying for a home loan?
The eligibility criteria for NRI home loans might vary from lender to lender. However, some of the basic requirements can be summed up as follows -
Most of the lenders in India (both public and private) require you to provide an amount equivalent to 10% to 20% of the home loan amount as a down payment. This initial amount which is to be provided by you is called the own contribution.
8. What security needs to be provided when applying for a home loan?
Your lender might ask for security when you apply for a home loan. You can provide one of the following as collateral security for your home loan:
A legal document which is used to compile the outlines of the transaction in relation to a property is called an agreement of sale. The agreement of sale usually lists the details of the transaction such as the price of the property and is signed by the buyer as well as the seller.10. Can I get a higher loan through my existing loan account to buy a new property?
Yes, you can use your existing loan account to purchase a new property. However, this benefit will be offered as per the discretion of your lender. For example, HDFC Bank offers the ‘Home Conversion Loan’ feature which can be used to transfer the existing loan to buy a new property. In addition to that, you can also get additional fund for the new property as per your eligibility.11. Can I get a top up loan in addition to my existing home loan?
Yes, you can get a top up loan in addition to your existing home loan. However, in order to be eligible for the same, you will be required to make regular repayments for your existing loan.12. Can I borrow loan for under construction property?
Yes, you can avail housing loans for under construction properties. However, it should be kept in mind that the amount will be disbursed in instalments as per the assessment of the lender.13. Who are eligible for a joint home loan?
The eligibility for a joint home loan is dependent on the relationship of the co-applicants. The co-applicants have to be related in order to be eligible for a joint home loan.14. What factors are considered by a lender/bank while approving a loan?
There are several factors that are considered by banks or lenders to determine if you are eligible for a loan. These factors are mentioned below:
Yes, your parents, children and spouse are considered eligible for being co-applicants for the home loan.16. Am I eligible for tax benefits if I take a home loan?
Yes, you can avail tax benefits when you take home loan from a bank or a financial institution under Section 80C and Section 24 under the IT Act.17. Will I be eligible for a home loan if I have a bad credit score?
In case you have a poor credit score, it will be difficult for you to get a home loan. Banks or financial institutions consider your credit report to be of great value while determining your eligibility towards a loan. If you have a good score, banks will be happy to offer you a home loan with attractive rates of interest. However, with a bad score lenders will doubt your repayment capability and might not consider you to eligible for a home loan.
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