Are you planning to get a new home? Are you looking for the best home loan options in India? Well, if you’re getting a home for the first time, there are a few things which you must know. First and foremost, you need to understand whether or not you are eligible for a home loan.
In the following paragraphs, we have described the home loan eligibility criteria in India for all reputed Indian banks.
To be eligible for a home loan in India, you will have to be either of the following:
- A salaried individual
- A self-employed individual
- A professional
As it is obvious, you need to have a regular source of income in order to be eligible for a home loan in India. The reason behind this is simple. The lender expects the borrower to repay the loan. When the borrower is an earning individual, the person can return the money. The risk of lending money to an earning individual is very less compared to the risk of lending money to someone who doesn’t have a regular flow of income.
With that, let’s now take a closer look at the eligibility criteria categories.
If you fall under this category, you are either a Government employee or an employee of a private organisation. To get a home loan under this category, you will have to submit documents such as your bank details and salary slips.
Professionals such as engineers, doctors, architects, charted accountants have a regular income. They are eligible for home loans.
Under this category, you need to have a well-established business to get a home loan. You’ll have to show your regular income tax returns to get approval for the loan.
Other than these three criteria, there are other for factors too which make you eligible for getting a home loan. Here are some of these factors:
Income – Your income is a major factor that decides the loan amount you’re eligible for.
Interest rates – Loan eligibility is inversely proportionate to the interest rate. If your interest rate is low, your loan eligibility will be high and vice-versa.
Credit history – Before banks offer you a loan, they make sure to check your credit history from CIBIL. If your credit report is good enough, you may get approval for the loan. If not, you’ll have to work on improving your credit score.
Age – The loan applicant must be at least 24 years old when applying for the loan and must not be more than 65 years at the time of maturity.
Getting a home loan in India can be tough. However, there are options like the Pradhan Mantri Awas Yojana scheme under which you can get subsidy on your home loan amount. That makes it easier for getting quick loans as Banks are assured of getting the loan amount back.
So, if you are looking for home loans in India, choose whichever bank you want but make sure to check out the Pradhan Mantri Awas Yojana scheme. Trust me, you’ll find it worth it.