The moment you decide to avail a housing loan in order to fulfill your dream home wish, knowing your eligibility is very important. Yes, it plays a pivotal role as lenders do consider the same while approving your housing loan. Thus, it would not be wrong to say that to avail a housing loan from a public sector bank, meeting its housing loan eligibility criteria is a necessity. However, different Public Sector Undertaking (PSUs) have different loan eligibility criteria. So, before you choose a lender, just check the eligibility with the same so that the loan buying process will become easier for you. There are various parameters depending upon which the banks decide how much loan you can actually avail. So, knowing your eligibility can take you miles ahead and let you fulfill your dream home wish.
As mentioned above, there are various key factors that decide your housing loan eligibility. Your age, income, monthly expenses, repayment capacity are few of the pointers that play a pivotal role in the process. However, for your reference, below is a table showcasing your eligibility.
|Minimum age to apply for home loan||21 Years||21 Years|
|Maximum age at the time of loan||60 Years||65 Years|
|Net Income Criteria||A minimum annual income of ₹1,20,000 is required||A minimum annual income of ₹1,50,000 is required|
|Current Experience||2-3 years of current job stability||3 years of current business stability|
|Loan Value Ratio||85% of Agreement Value||85% of Agreement Value|
Your monthly income is undoubtedly the most promising factor factor that helps in making you eligible for a housing loan. Earning a handsome salary increases your chances to become eligible for a higher loan amount. Be it salaried or self-employed, higher monthly income can fetch you great results by boosting your eligibility.
Your age is also considered by banks while evaluating your housing loan eligibility. Usually, in most of the cases, the age of an applicant should be between 18-65 years, required by majority of lenders. However, if you do not fit into the same criteria, your loan application might be rejected and it would be difficult for you to turn your dreams into reality. Early you apply, more chances are for you to avail a higher loan amount.
If the property you have chosen, is located in an approved society, colony or area, you can easily avail the loan amount you are looking for. The value of your property gives its share while boosting your housing loan eligibility. Before availing you the loan, the banks do cross-check the market value of your property, and agree to disburse the loan if the property is located in an approved place with no legal disputes. If your property clears all the technical norms and legal verification then only you become eligible to availed the desired loan amount.
Your loan amount eligibility also increases, if you have a good credit history. It becomes easy for you to get the desired loan amount, if you are not a defaulter. And, this can only happen, if you maintain a good CIBIL score of 750 or above out of 900 by paying all your dues on time. A bad credit score can adversely impact your loan eligibility, thus increases the chances of loan application rejection.
Employment Status for Salaried
Your employment status also gives its share in order to enhance your loan eligibility. To become eligible for a housing loan, the applicant needs to have a minimum work experience required by a lender he/she applied with. Usually, banks look for a minimum 3 years of work experience for salaried individual.
In order to be eligible for a housing loan, the self-employed professionals or a businessmen need to submit their professional details, business status record as well as bank statements just to show the bank their financial stability. After fulfilling this eligibility criteria, you will become eligible for a home loan and your loan can easily be approved by the bank.
Relationship with Lender
If you have a good relationship with a lender, it can actually help you to negotiate for a higher loan amount. Yes, you can negotiate with your lender to get a higher loan amount and that too at lowest interest rates. And, this can only happen, if you maintain good terms and relations with your lender as it helps you to reap many benefits like this in the near future.
Your Employer Category
Working with a renowned and reputed organization also gives its share in enhancing your eligibility towards housing loan. Working in a Fortune 500 Company can actually strengthens your profile stronger and makes you eligible in the eyes of many lenders. However, if you are not meeting the necessary eligibility needs, it may be possible that you can avail the loan at higher interest rates.
SBI is one of the biggest public sector banks in India. With its wide range of products and services, the bank has created its own niche especially in the housing sector. This is the reason that when people think of taking a housing loan, SBI is the only name that comes to their mind. But, before availing SBI housing loan, it is important to meet the eligibility criteria for the same. You can refer the table below to know more about the product.
|Age||18- 70 Years||18- 70 Years|
|Income||₹1,20,000 (p.a.)||₹2,00,000 (p.a.)|
|Loan Amount Offered||₹5,00,000 - 1,00,00000||₹5,00,000 - 2,00,00000|
|Tenure||5 Years-20 Years||5 Years-20 Years|
|Current Experience||2 Years||3 Years|
By offering many customized housing loan products to fulfill the varied needs of all, Allahabad Bank helps in fulfilling your dream home wish. The bank offers loan at lowest interest rate and charges with flexible tenures, thus has become the most preferred option among many housing loan borrowers. To know about the eligibility of the bank, take a look at this table below.
A public sector lender with a network of over 5,000 branches, Bank of Baroda is a name to reckon with. When it comes to housing sector, the bank with its best of products is catering the needs of all. By offering a loan at attractive interest rates, processing fee and easy repayment options, BOB ensures to meet your housing loan requirements at its best. In order to know more about Bank of Baroda Housing Loan eligibility, go through the table below.
|Age||21-60 Years||21-70 Years|
|Income||Must be earning sufficient income||Must be earning sufficient income|
|Tenure||30 Years||30 Years|
|Job/Professional Status||2-3 Years||2-3 Years|
PNB Housing Finance by offering a complete bouquet of services to the customers meeting their needs is undoubtedly a trustable name when it comes to housing loan sector. With maximum loan amount, flexible tenures, quick process and minimal documentation, PNB Housing loan is easy to avail. If you also want to avail the same, check the table below to know your eligibility.
|Age||21 Years-70 Years|
|Loan Amount||Upto ₹75 Lakhs|
|Loan to Value||
Upto ₹30 lakhs– 90% of market value
Above ₹30 lakhs- 80% of market value
Above ₹75 lakhs - 75% of market value
Bank of India offers housing loan to fulfill your wish within your budget. The bank with its best of product ensures that your dream of buying a home can easily be fulfilled with flexible tenures, attractive interest rates and hassle-free process. If you want to know more about the eligibility of BOI housing loan, take a look below.
Whenever you are in search of housing loan, Oriental Bank of Commerce is here to help. The bank with its vast range of products in housing sector ensures to satisfy one and all. The OBC housing loan comes to you with easy repayments, minimum document requirement and higher loan amount. To know more about the eligibility criteria of OBC housing loan, go through the article below.
To know more about eligibility calculator, let's just refer the example below.
Suppose you work in a leading company and getting a handsome monthly salary of ₹90,000. Now, if we look at the savings, it is well understood that you can't save the entire monthly amount as you have some other liabilities or monthly expenses to look after. So, let's say, if you spend around 50% of your monthly income i.e. ₹45,000 , it is quite obvious that the remaining 50% amount can be used to repay a loan, if you avail the same in the future. So, let's take a look below your loan eligibility.
If you save half of your monthly income i.e. ₹45,000, the similar remaining amount can also be used to repay your EMIs, if you avail the same in the future. Thus, it gives the indication to the bank that you are eligible to pay the EMIs without any hassle. So, now if you are ready to avail the loan, it is important to calculate your tenure, rate of interest and loan amount so that you can know your EMIs that you need to repay the eligible loan amount.
Amount: ₹1 Lakh
Loan Tenure: 20 years
Rate of Interest: 9.30%
Your EMI will be: Rs.919
Now, if we do the reverse calculate and take into consideration your saving of ₹45,000 along with your EMI of ₹919 to repay the loan amount of ₹1 Lakh, so your home loan calculations for eligibility would be:
₹1 Lakh* 45,000/919= ₹ 42 lakhs
So, this way your loan eligibility is ₹48.96 Lakhs (approx).
It is undoubtedly the most simplest and quickest modes of knowing the housing loan eligibility. However, loan eligibility may differ from bank to bank, but one thing that needs to be mentioned here is the fact that the same process is followed by most of the banks to calculate the loan eligibility of an applicant. In addition to, you also need to focus on other important factors that lenders usually keep in mind while evaluating your housing loan eligibility so as to have a hassle-free loan journey.