A home loan is an obligation that can stretch to as long as 30 years. And so, there is a need to do a careful consideration of the loan type. Many of you may not like to be put under the debt burden for so long. Actually, those who think that way are absolutely right in doing so as interest repayment remains massive with a very long tenure. A proof of the same can be given through Home Loan EMI Calculator. But, before jumping on the repayment, you must have a clear idea of the eligibility.
It can only help you escape rejections from the lender which often is the case when one is unaware of the eligibility. Even if you are eligible for a loan, the extent of finance can be a lot lower, hence making you ask for a help from friends or relatives to pay the shortfall. Plus, the fact that a home loan is not 100% financed and you have to pay around 10%-25% of the property cost to the seller, the requirement of outside help can rise greatly.
It’s better to check Home Loan Eligibility than to ignore. The article will highlight on the eligibility that lenders seek in a home loan applicant. So, stay tuned.
Home Loan Eligibility SBI
State Bank of India (SBI) puts in place a few eligibility criteria for a home loan application to get approved.
- All the resident Indians must be a minimum of 18 years (salaried) and 21 years (self-employed) at the time of loan application
- The applicant’s age must not be more than 70 years of age at the time of proposed loan maturity
- The minimum annual income sought equals to ₹1.8 lakhs
Axis Bank Home Loan Eligibility Calculator
Axis Bank has the following eligibility criteria for a home loan.
- Both salaried and self-employed with a stable and regular source of income can apply
- Salaried must be above 21 years while applying and must not be more than 60 years at the time of proposed loan maturity
- Self-employed must be more than 21 years at the time of application. At the time of loan maturity, they must not be above 65 years
Home Loan Eligibility Calculator ICICI
ICICI Bank has the following eligibility criteria for a home loan.
- Salaried and self-employed with a stable source of earning can apply
- An applicant must be at least 21 years old at the time of applying. The maximum age must not be more than 65 years at the time of loan maturity.
How Do Lenders Decide the Home Loan Eligibility?
A home loan can be financed up to 75%-90% of the property cost, with the remaining to be paid from your end as margin money. While deciding the loan amount for an applicant, the lenders check your income, expenses and savings. These three factors greatly decide the extent of repayment burden you can face. Greater the income and savings more would be the eligibility and vice-versa.
Will Credit Score Matter to Home Loan Approval?
Yes, it will. Even though it’s a secured loan, lenders will check your credit score before saying ‘Yes’ or ‘No’ to your application. A credit score must be 700 and above to get an approval for a debt.