Banks must fulfill certain conditions for approval of home loan applications. That ensures that the borrower will be able to repay the loan and there are very few chances of default. However, if he/she does not fulfill the eligibility requirements, the home loan application will be rejected by the bank, which will adversely affect the overall credit status of the user. The eligibility criteria for a home loan are based on the age and salary of the applicant as well as his credit score and other factors.
Different banks may have different sets of eligibility criteria depending on their requirements. However, the qualification requirements may be the same in different banks in the country. To get a home loan from a bank, you have to meet their eligibility criteria. The standard eligibility criteria which are the same across all major banks in India are shown in the table below.
- Age limit of 23 to 62 years for salaried employees
- Age limit of 25 to 70 years for self-employed persons
- Sybil’s score is up
- Work Experience (Salary) Minimum three years work experience
- Continue stable business operations for at least five years
- The minimum wage is 25,000 November November
- Nationality Nationality of India
The above table shows the standard eligibility requirements for all the major banks in the country. CIBIL score is essential for approval of home loan application. Meanwhile, a salaried person can apply for a maximum home loan of Rs 3.5 crore, while a self-employed person can apply for a home loan of up to US$ 50 million.
Calculate your home loan eligibility
Once the lender or bank has all of your information, they use a certain percentage to determine your eligibility. Three are the most important;
Relationship between liabilities and fixed income
In this case, the lender is looking at all previous loans and the amount owed on those loans as well as the home loan requested.
Investment in respect of income
This ratio tells the bank how much of the income needs to be used, in case it needs to use half of the income to repay the loan.
debt costs and ratios
This ratio shows how much the lender finances the property and how much from you. This allows you to see how much equity is in your property.
Steps to improve your home loan eligibility
Here are a few things you can do if you want to increase your chances of getting a home loan.
- Make a working family member, such as your spouse, a co-applicant for the loan.
- Ask your lender if you can set up a systematic payment plan.
- Regular savings and investments along with a steady source of income.
- Detail common alternative sources of income, such as rental income from other locations and income from a company other than your current employer.
- Keep track of your compensation components including bonuses, commissions and overtime.
- Understand your credit score and take immediate steps to correct or correct any errors.
Payment of outstanding debt and current liabilities.
Here are some steps to begin the process of preparing for mediation. In addition, even if you apply for a home loan with a low CIB score. Subsequently, it is better to first follow the methods to improve your CIBL score and then avoid rejection while applying for any kind of loan.