Ready to apply for a Home Loan? You must first check the eligibility and Home Loan documents that you will need to fasten your Home Loan application process. Read on!
If you have plans to have your own home, getting a Home Loan for the same is easy these days. Your loan application will see no delay if you fulfil terms and conditions of the lenders along with the Home Loan documents.
Before you get to know the documents for the House Loan, you must know about the loan eligibility criterion.
Home Loan Eligibility Criterion
You can avail a Home Loan for many purposes such as buying a home, renovation, purchasing a used home, purchase a plot or land or more. While many borrowers dream of buying their home, they fall short of the Housing Loan eligibility criterion which you must have a look.
- Indian citizen
- Age should be between 28-58 bracket
- A salaried candidate with at least 3 years of professional experience
Home Loan Eligibility Calculator
A Home Loan eligibility calculator is a free online tool that can help you know if you are eligible or not. Most of the lenders have this calculator on their websites which you can use.
How a Home Loan Eligibility Calculator Works
You need to enter some vital details in a loan eligibility calculator for it to work such as:
- Current location
- Date of birth
- Net monthly salary
- Other monthly income, if any
- Loan duration or tenure (in years)
- Current outstanding EMIs or obligation
Once you enter these details, you will get to know if you are eligible for a Housing Loan or not and start drafting Housing Loan documents as per your result.
Home Loan Documents That You Need To Furnish
- A complete loan application form
- Colour photographs
- Identity proofs (Any one) – Voter ID Card, Driving License, Job Card issued by the NREGA, PAN Card, Aadhaar Card
- Address proofs (Any one) – Voter ID Card, Passport, Aadhaar Card, Driving License
- Income details – Latest pay slips and Form 16
- Bank account statements – Last 6 months is a must
Factors that decide a borrower’s Home Loan Eligibility
Every bank and NBFCs that provide Home Loan will look into many factors while they sanction your Home Loan. Few important factors include:
- Employment Stability
It is one of the major Housing Loan eligibility factors. If a borrower is not consistent with his work and not work for a company for at least two years, a lender will not consider him/her eligible for the Home Loan.
- Age Criteria
The younger the Home Loan applicant is, the more probability of getting a loan. Most of the lenders prefer salaried employees only if they fall under the age bracket of 28-58 years.
- Good Credit Score
The better your credit or CIBIL score is, the more chances your Home Loan application to approval. Lenders consider a credit score of 750 and more as good while processing your loan application. A borrower must clear his outstanding debt before applying for a Home Loan to improve his/her credit score.
- A Good Employer
If you are working with a reputed company, your lender may sanction your Home Loan. It works because a creditor may assume that if you work for a renowned organization, you have the capability to repay the loan. Even if you have a bad credit score, your loan application may approve if you work for an imminent company.
The Bottom Line
Now you must be feeling even more confident to apply for a House Loan after going through the Home Loan documents along with Home Loan eligibility criterion and related factors, right?
There are many lenders to provide you Housing Loans, but the only condition is, you must fulfil their eligibility criterion.
Quickly analyze the eligibility elements that suit your case and make yourself eligible against all the factors.
Don’t lose hope even if you don’t meet the loan eligibility criterion, take your time, try to balance your records and make your Housing Loan application case a strong one.