The General Eligibility Criteria For Home Loan In India

by Ajay Singh Financial Advisor

Are you trying to get your loved ones their address? Well, it is a big-time achievement to get hold of a new home that you can call yours. A home is always a big investment and you need a good amount of funds to purchase a property. It accounts for a huge availability of funds so that you can purchase a good property. That is when you would need a home loan. A home loan is a loan that you can take from any financial institution to get your property. The maximum fund is offered by them, and all you need to arrange is the down payment. However, to get a home loan, you need to meet the basic home loan eligibility criteria. There are some very general eligibility criteria given by various loan providers that you need to meet, to get approval.

What is a home loan?

A home loan is specific to the purpose of buying a home or a property. It cannot be used for anything other than a home. The bank or financial institution that you borrow from gets you 90% fund of the property price, and the rest of the down payment is done by the borrower. It comes with a lump sum amount of money at one time, and the repayment is done in easy monthly installment or EMI. The tenure and rate of interest will play a vital role as you need to understand the capacity of the debt repayment. If you need an affordable loan, you will have to get the best rates in the market. However, to get a home loan approval, you need to meet the basic eligibility criteria as set generally by all the borrowers.

General home loan eligibility criteria

● Credit score: A good to excellent credit score is the first thing that you need. You must get a good credit record with an extensive report that seeks you as a responsible one with good credit activities. A score is of three digits and it helps the loan provider to understand whether you are capable of handling the debt or not. By recording the past credit activities, the score is given an assurance to the loan provider about offering you a loan. If you have a good score, you can easily get loan approval without many hurdles.

● Income of borrower: If you are going for a home loan, you must have a good income. The home loan is about a high amount that goes on for the long term. The EMI of a home loan is always high and one with a good income can fulfill the repayment without default. You must go ahead only when you have met the eligibility for a good income. An individual that struggles to meet daily expenses can never be approved of a home loan.

● Age: The basic eligibility to get a home loan is 21 years. One needs to be a minimum of 21 years of age to get a home loan. If you are not yet the age of eligibility, you can seek the help of an adult.

● Property: The reputation of the property and builder can get your eligibility met. If you are buying a property that has a good name, you can easily get approval. There are fewer chances of risk as the loan provider can easily get a good value from the property if you default.

Finishing up

Take care of the home loan eligibility criteria properly. It is very important to get a home loan. If you meet the criteria you not only get easy approval, but also amazing rates and deals.

Read More: What is a good credit score and how you can maintain it?