Availing a home loan in India is not at all easy task, as the person has to satisfy various eligibility criteria for getting the home loan. The various eligibility criteria for getting the home loan, are discussed in detail, in the following article; these criteria are:

  1. 1.      Financial background of an applicant

The loan amount is decided primarily upon the paying ability of the applicant and the co-applicant. Financial background means the savings of the customer, collateral and working details of the customer.

  1. 2.      Income of an applicant

Banks usually consider up to 50% of the monthly income of all applicants for the EMI amount while deciding the loan amount. This percentage may decrease if the person has other obligations also to meet from his monthly income. These obligations decrease the overall loan amount of the customer. Therefore, while applying for home loan one should clear all his debts, so the person can avail maximum loan amount.

  1. 3.      Applicants Profession

The lenders also consider working details while deciding the loan amount, as it shows the repaying ability of the customer. The bank prefers salaried person more than the business person.

  1. 4.      Age of the customer

The age of the customer plays a vital role while deciding the loan amount. The minimum age required for availing the home loan is to be or above 21 years. The person can avail loan for maximum up to the age of 60 years for salaried person & for self employed is 65 years.

  1. 5.      Value of the property

Always remember, that the bank can provide a loan amount only up to 85% of the market cost of the house/property/land/home. The remaining 15% value of the home is paid by the customer as down payment. It is so because bank want to minimize the risk of lending the loan amount as they want customer has some interest in purchasing the property.

With this article, the person comes to know what documents the person has to prepare for availing the loan. The person has to submit income proofs, age proofs, some saving details, identity proofs, and employment details. If the customer satisfies all these criteria, but the creditability is poor, then also the loan application gets rejected. Therefore, one should check their credit report and settle all pending dues before applying for the loan.