Home Loan Eligibility Calculator

Home Loan Eligibility Criteria of Top Banks

Customers who are planning to apply for a home loan can check the eligibility criteria sought by top banks in India.

Home Loan Eligibility for SBI

The eligibility criteria based on which SBI accepts home loan applicants are as follows:

Eligibility CriteriaFor SalariedFor Self-employed
Minimum Age18 Years18 Years
Maximum Age70 Years70 Years
Minimum IncomeINR 1,20,000 (p.a.)INR 2,00,000 (p.a.)
Loan Amount OfferedCustomizedCustomized
Loan Tenure30 Years30 Years
Current Experience2 Years3 Years

Apply Home Loan @ 6.90%* Rate

Home Loan Eligibility for HDFC Bank

To apply for the loan at HDFC Ltd, you have to meet the below eligibility criteria:

Eligibility CriteriaFor SalariedFor Self-employed
Minimum Age21 Years21 Years
Maximum Age60 Years65 Years
Minimum IncomeINR 1,80,000 p.a. INR 1,80,000 p.a.

Home Loan Eligibility for LIC Housing Finance

LIC Housing Finance has won the hearts of many by offering them a hassle-free loan. To avail the same, you have to fit into the below eligibility criteria.

Eligibility CriteriaFor SalariedFor Self-employed
Minimum Age18 Years18 Years
Maximum Age60 Years60 Years
Minimum IncomeINR 1,80,000 p.a.INR 2,00,000 p.a.
Loan Amount OfferedMinimum INR 1,00,000Minimum INR 1,00,000
Loan TenureUpto 30 YearsUpto 25 Years
Current Experience2 Years3 Years

Home Loan Eligibility for ICICI Bank

ICICI Bank has set the following criteria for you to meet.

Eligibility CriteriaDetails
Minimum Age21 Years
Maximum Age65 Years
Employment TypeSalaried and Self-employed

Home Loan Eligibility for Axis Bank

Axis Bank offers home loans at attractive interest rates, lower fees and charges, hence allow you to fulfill your dream without any hassle. To apply for the loan, check the eligibility criteria below.

Name of SchemesEligibility CriteriaLoan AmountLoan Tenure
Fast Forward Home LoanType: Salaried, Self-employed, ProfessionalsAbove INR 30,00,000Upto 30 years
Axis Bank Home LoanAge: 21-65 Years Employment
Type: Salaried, Self-employed, Professionals
Above INR 3,00,000Upto 30 Years
Asha Home LoanIncome: INR 8,000 - INR 10,000 per month Employment Type: Salaried, Self-employedAbove INR 1,00,000Upto 30 Years
Empower Home LoanEmployment Type: Self-employed Professionals, Self-employed Non-ProfessionalsAbove INR 10,00,000Upto 15 Years

Home Loan Eligibility for PNB

To apply for PNB Home loan, check the eligibility required below:

Eligibility CriteriaDetails
Minimum Age21 Years
Maximum Age70 Years
Loan AmountCustomized
Loan TenureUp to 30 years

Home Loan Eligibility for Bank of Baroda

To apply for Bank of Baroda home loan, you must know that you have to match the eligibility criteria set by the bank. Look at the criteria below:

Eligibility CriteriaFor SalariedFor Self-employed
Minimum Age21 Years21 Years
Maximum Age60 Years70 Years
Job/Professional Status2-3 Years2-3 Years

On what basis is your eligibility for a home loan calculated?

Until now, you have known about the eligibility criteria of the top home loan lenders. When we talk about home loan eligibility, it’s essential to know about the factors that affect this. The two main factors are the monthly income and repayment capacity. Others are the applicant’s age, employment type, credit score, existing obligations, etc. We are providing information about all of them below that you can check.

Your in-hand Income

The most important factor that defines your repayment capacity is your monthly income. Higher your monthly income will be, the greater space you have for loan repayment, resulting in greater disbursals. That’s why the first thing lenders check before sanctioning the loan amount is the monthly income of an applicant.

Applicant’s Age

The age of an applicant is also an important factor that decides your home loan eligibility. Lenders usually give loan amounts to younger people as such applicants have larger repayment capacity as compared to an old applicant nearing his/her retirement age. Also, home loans are generally for a long duration, that’s why eligibility of an applicant is higher at a much younger age.

Credit Score

A credit score defines the creditworthiness of an applicant. It is easier for a lender to trust an individual with a high CIBIL score (700 or above). A high CIBIL score shows that the applicant has a good repayment behavior and always pays EMIs on time. Some lenders ask for a definite CIBIL score below which they don’t provide the loan amount.

Employment Type

When a lender decides to give a home loan to any individual, the employment type plays a crucial role in determining the eligibility of the particular applicant. Lenders are more likely to provide a home loan to an individual working in an MNC than an individual working in a non-listed company. Why? Because the repayment capacity of the former applicant is much more than the latter one. The employment type and its reputation can work in your favor while opting for a home loan from any lender. The lender can also offer lower interest rates on your home loan.

What is the Location of your Property?

As you get a home loan against your property and that’s why the location of your property plays a huge role in your home loan eligibility. The first thing that a lender will check is the place where your property is located. A property in a good location with all the amenities nearby can get you a higher loan amount at lower interest rates as the lender can have lesser credit risk as compared to a loan on property situated in an underdeveloped and isolated location. So, make sure you get a property at a prime location to get the desired loan amount.

Do You Have the Proof of the Last 3 Years ITR Filing?

If you are a self-employed individual, it is important to have the proof of Income Tax Return (ITR) filing so that a lender can have an estimate about your annual income. This will determine your repayment capacity; whether you will be able to pay the EMI amount or not. At the time of loan sanctioning, the lender will ask you to submit ITR-related documents. The lender will check them and then decide how much loan amount you can get.

Is Your Property Ready-to-Move-in or Under-construction or plot?

It is also one of the important factors that affect home loan eligibility. Lenders check if your property is ready-to-move-in or it is under construction or plot. Suppose the property against which you want the loan amount is an under-construction one then the lender releases the loan amount in installments. On the other hand, the loan amount can be disbursed in one installment, if you opt for a home loan to buy a ready-to-move-in property. So, you need to keep this in mind before applying for a home loan.

Do You Have the Map and Registration Papers of the Property or Not?

It is also important that you have all the necessary documents related to your property at your disposal at the time of applying for a home loan. Without all these documents, your loan application will not be processed, and as a result, you will not get the loan amount in your account. So, you need to make sure that the property has all the required documents such as Map, Registration Papers, Sales Deed, etc, before applying for a home loan.

Whether the Property is approved by the Government or not?

If the property for which you want to take the loan has not been approved by the government, it would be very difficult for you to get the desired loan amount from the lender. It is important that your property is according to the terms and conditions set by the government. So, you must check thoroughly about the property before opting for a home loan amount from any of the lenders. No lender will give you the loan amount on some illegal property as it would be quite risky.

Whether or not the Builder is Approved by the Government as well as the Lender?

Another factor that you need to check if the builder of your property is credible enough. The builder must be approved by the government as well as the lender so that you can get the loan amount against this. There have been a lot of fraud cases from the builder side due to which a lot of people lose lots of money. So, it is important to double-check. You can check the overall record of builders, history of the property sold, current value and location of the property, etc, to make sure it is right.

Do You Have Any Existing Loan or Not?

Your existing obligations (personal loan, vehicle loan, etc.) also decide your home loan eligibility. If you are having an existing loan obligation, your repayment capacity will automatically decrease. A part of your monthly income will be going towards your existing loan EMI. So, it would be better to settle all your existing loans before opting for a home loan.

The answers to the above questions decide whether you are eligible for a home loan or not. If you are found eligible, you can apply.

Lenders Also Check EMI/NMI Ratio Before Determining Home Loan Eligibility

Not many may not know the home loan amount is also dependent on the ratio of Equated Monthly Installment (EMI) to the Net Monthly Income (NMI). Ideally, the proposed EMI should remain within 50%-60% of your NMI. But lenders can change the norm related to EMI/NMI ratio while deciding the loan eligibility. The reason being the expenses and financial state of individuals can differ across different income groups.

For example, someone earning INR 30,000 a month will get a loan amount where the EMI won’t exceed 40% of his/her NMI. Lenders will do so to ensure people with such income have more space for repayment. As the income slab moves up, the repayment capacity can go up by some notches, and then, that 50%-60% ratio talked earlier will apply.

What is the minimum CIBIL Score required for Home Loans?

For home loans, your credit history should be good and your CIBIL or credit score should be at least 720. Even though some a home loan can be availed by non-credit score holders, having good credit score gives you the opportunity to grab lower rates on your loan.

Can a Lockdown Make You Eligible for a Home Loan in the Future?

If you are someone wanting to buy a home in the near future, the ongoing lockdown due to the COVID-19 pandemic could be a blessing in disguise for you! You may ask how? Well, you will most likely be staying indoors due to lockdown. As a result, there are no travel and fuel expenses for you to make. This must have ensured significant savings for you till now. And with COVID-19 cases rising at a consistent pace in India, lockdown could further from May 17, 2020, and help you save more. You can use such savings and cut down on the non-essential stuff to create a bigger pool of corpus. So, if the EMI of the loan you are planning for comes as more than 60% of your net monthly income, the extra savings owing to lockdown can be put to good use by paying more than the down payment amount. This will reduce the loan amount, help ensure an optimum EMI/NMI ratio and make you eligible for the loan eventually.

Home Loan Eligibility FAQs

The eligibility for a home loan is decided based on factors such as the monthly income of the applicant, age, property value, credit history, professional stability, relationship with the lender and the category of the employer. Let us see the role of each of the components and the common frequently asked questions related to home loans.

How much home loan can I get on my salary?

The monthly income is one of the most important factors in deciding your eligibility for a loan. If you are earning good and as per the requirements of the lender, you might be able to get a higher loan amount. However, the loan amount won’t exceed 90% of the property value.

At what age can I apply for a home loan?

Even though the minimum age required for the loan is subject to change from one lender to another, if you are above 21 years, you are eligible to apply.

What is the role of property in deciding the loan amount and rate?

If the property, for which you want to take loan, is located in an area authorized by the state or central government, it is easier to get the approval as the verification process gets simpler. This is the most important factor that people often ignore as they either buy the property at the unauthorized location or they somehow do not maintain the property chain.

Does your credit history matter?

A good credit history is also important to get approval for your loan. You can check your CIBIL score before applying.

What is the minimum work experience required?

You should have a minimum work experience of 2 years to apply for a home loan. So, if you have just started your career, you will have to wait for at least 2 years even though you have a good income. Or, if you are working with a big firm and have a good source of income, you can talk to the lender for your eligibility. It depends on the lender if it accepts your application or not.

Which lenders provide plot loans?

As you know, a home loan can be availed for multiple purposes such as plot purchase, land purchase, construction, improvement, Home Conversion, and Home Extension. So, almost all lenders provide loans for plot purchase. The only condition is that you have to mention the purpose at the time of applying for a home loan and submit relevant details.

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  • Home Loan Interest Rates August 2020
    Axis Bank7.75% - 8.55%
    Bank of Baroda7.00% - 8.40%
    Citibank8.20%
    HDFC6.95% - 8.00%
    ICICI Bank6.95% - 8.05%
    Indiabulls Housing Finance Limited8.80% - 11.05%
    Kotak Bank7.20% - 9.30%
    LIC Housing6.90% - 7.90%
    Piramal Capital & Housing Finance9.00% - 9.10%
    PNB Housing Finance8.60% - 9.45%
    Reliance Home Finance8.75% - 14.00%
    State Bank of India/SBI6.95% - 7.60%
    Tata Capital9.20% - 9.35%