Are you familiar with the Home Loan eligibility requirements established by your bank? If not, be assured before you apply for a Housing Loan.

In this context, it is essential to be familiar with the following:

How to determine your eligibility for a home loan based on your employment status
How to determine your eligibility based on your credit score.
How to determine your eligibility based on income and other financial commitments.

This article will provide a concise description of how to assess your eligibility for a loan.

Criteria for Home Loans for Salaried Individuals

Those who call India their permanent home.
Between the ages of 18 and 60 years old.
Have a minimum of three years of experience working in either the public or private sector or a multinational corporation.

Criteria for Home Loans for Individuals in the Self-Employed Market

Those who call India their permanent home.
Between the ages of 18 and 65 years old.
Maintain at least five years’ worth of business continuity in the company you are currently operating.

The applicant’s age when the loan matures is considered when determining the maximum age restriction.

These are the fundamental requirements that must be met for an application to be considered; nevertheless, your eligibility for a Home Loan ultimately rests on the job, financial, income, credit, and obligation profile that you provide.

The Possible Credit Scores for a Home Loan

There is a variety of loaners out there, and the majority of them favour candidates with a credit score of 750 or above for a Home Loans. This is because your credit score serves as a numerical representation of your creditworthiness, and a low score would thus signal that you offer a certain degree of risk.

If your credit score is less than the ideal, you may still be able to get financing from some creditors; however, the funding conditions may not be as favourable as they otherwise might be, such as a higher interest rate or a lesser sanction. It would help if you strived to raise your credit score to lower the risk associated with lending to you and enhance your eligibility. The possible ranges of credit scores are shown below.

Ideal score- 750–900 Points
Good- 650–749
Bad- 300–549

Your FOIR, or Fixed Obligation to Income Ratio, is one of the significant aspects determining whether or not you are eligible for the program. This ratio indicates how much of your income is available to pay your home loan instalments and how much is used to service other commitments, such as other loans. This is essential information if you want to know how much of your income is available to pay your home loan EMIs.

The bank also considers your age and the location in which you live when determining whether or not you are eligible for a loan. For instance, a borrower in the early stages of his 30s has a good chance of being provided with a longer tenure or better conditions, given that they are likely to stay in labour for a more extended period.

In addition to gaining knowledge of what influences a person’s eligibility for a home loan in general from the elements given above, you can also evaluate your eligibility for a home loan with the assistance of the Home Loan Eligibility Calculator.

All that is required from you is to:

Choose your city from the options on the list.
Choose your date of birth from the list below the drop-down menu.
Provide your monthly income or salary in the space provided (or use the slider)
In the space provided, please list your existing EMIs in addition to your monthly commitments and costs (or use the slider)
Check out the maximum amount of home loan you might get.