As a home loan is a secured loan, the chances are high to get easily approved for one. However, it is essential you fulfil certain general eligibility criteria. Following are the criteria that all lenders generally look for in a borrower. 

  • Income: This is the primary eligibility criterion that banks look for in an individual who applies for a home loan. The maximum loan amount is determined based on how much the applicant earns per month. Salaried employees with high income potential are likely to become eligible for higher loan amount. Self-employed individuals who have had a good turn over for the past three years can get higher loan amount. If you have no other loans ongoing, you are likely to get approved for a higher loan amount. 
  • Credit Score: The lenders access your credit report to check your past credit history and credit score. A good score gets you higher loan amount at lower interest rates. 
  • Employment: Though this is very much related to the income factor, the lender checks whether you work for a reputed company and how long you have been working for the current employer. Based on your employment, the terms on the loan is fixed. For self-employed individuals, the interest rate could be slightly higher. 
  • Down Payment: No lenders offer you 100% home loan. As per RBI rules, you need to make a down payment of certain percentage of the value of the property. You can get the maximum of 90% on the property of Rs. 30 Lakhs. For higher loan amount, the down payment would be higher. 
  • Age: The maximum tenure on a home loan is 30 years. Hence, the lenders would look at your repayment ability and until when you will be able to complete the tenure. If you are applying at later period of your life, you are likely to get shorter tenure. 

If you are looking for a home loan and wondering whether you will be eligible for the loan, you can check your eligibility here.