Minimum and Maximum Age | - 18 - 70 years. However, some banks different minimum and maximum age for salaried, self employed and self employed professionals
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Net Monthly Income | - Net monthly income should be more than Rs. 25,000.
- In case your net monthly income is between Rs. 25,000 – Rs. 40,000, you may be eligible for loan if your fixed obligations (rent, EMI) do not exceed 50% of income.
- For net monthly income greater than Rs. 40,000, you may be eligible for loans if your fixed obligations do not exceed 65% of income
- For salaried persons, regular and timely salary credit is important for loan eligibility
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Loan Tenure | - Maximum loan tenure up to 30 years. However, some banks restrict loan tenure to 25 years
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Interest Rate | |
Company, Employment history | - Income history and job continuity of 3 years and more required (except for some professionals)
- Company or sector in which you work should not be black listed by bank
- Some professionals such as practicing lawyers, police personnel, builders may be considered as negative profiles by some banks
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Higher Eligibility with Co - applicant | - Adding an earning family member as a co- applicant can increase your housing loan eligibility.
- Banks can add upto three or four family members or firms or companies owned by applicants as co-applicants
- Eligible co-applicants include direct family members such as spouse, parents, siblings and children.
- Indirect family members like cousins, distant relatives and friends cannot be considered as co-applicants
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Current EMI’s | - Monthly EMI of existing loans reduces the new EMI that you can afford to pay.
- In some cases, it may be possible to increase eligibility by repaying loans with balance tenure of less than 10 years
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LTV | Banks only fund 75% to 90% of the total cost of the house. The maximum loan to value of the property or LTV specified by the RBI is as below: - 90% LTV for loans upto Rs. 30 lakh for buying affordable segment homes
- 80% LTV for loans above Rs. 30 lakhs and upto Rs. 75 lakhs
- 75% LTV for loans above Rs. 75 lakhs
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CIBIL score and Credit report | - Home loan is a form of secured loan. Hence, CIBIL score is one of the criteria but not the only criteria, on which banks will decide your loan eligibility.
- Generally banks require a CIBIL score of 700 and above
- But if your CIBIL score is low, then you can be eligible for Home loan from some banks and housing finance companies with some additional conditions, higher rate of interest and higher margin.
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Property approval and valuation | - The builder and property against which you are taking loan should be approved by banks
- For property being bought in resale, banks get a valuation report from an independent valuer. For higher ticket size loans (Rs. 1 cr and above), banks may get valuation reports from two independent valuers and take an average of the two to arrive at value for the purpose of calculating maximum loan eligibility based on LTV
- For arriving at property value of under construction property being bought from a builder, most banks include basic cost, development charges, preferred location charges and cost of parking in cost but do not include heads like stamp duty, club charges, registration charges, maintenance charges, security deposit etc. Service tax and VAT are included in cost by some banks and home finance companies but not by all banks.
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Comments
Bank Salaried Home Loan/ Mortgage Loan, 12 To 240 Months, 500 by Harpreet:
Buying home is an extremely crucial decision for an individual. We understand the importance and thereby assist you to avail the best services and save cost.
To help you buy your dream home, we facilitate you in getting home loans at the best possible interest rates and quickest disbursals
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