Apply Housing Loan Eligibility Details

  • Loan ID : N0186
  • 37
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The maximum age of the applicant can be 65 years in case of self- employed. The maximum age limit for salaried is 60 years. A salaried applicant should have at least two years of work experience. A self-employed applicant should have 4 years of work experience with good turnover.

Main factors that determine eligibility for home loan are

Age of the Applicant18 to 70 years
Eligible SalaryRs. 25,000 per month and above
Work Experience for Salaried3 years and above
Business Stability for Self Employed5 years and above
Minimum CIBIL Score650
Maximum Loan on Property ValueUp to 90%
Maximum EMI as percent of income65%
Eligibility with Co-applicantUp to 3 earning family members may be added to get higher loan eligibility

Housing Loan Eligibility Details

 
BankLoan Amount Eligibility for Max TenureAge of Eligible BorrowerMaximum Loan on Property Value
SBI Home LoanRs. 10 Cr for 30 Years18 to 70 yearsUpto 90%
HDFC Home LoanRs. 10 Cr for 30 Years24 to 60 yearsUpto 90%
ICICI Bank Home LoanRs. 10 Cr for 30 Years21 to 60 yearsUpto 90%
Axis BankRs. 5 Cr for 30 Years24 to 60 yearsUpto 90%
PNB Housing FinanceRs. 10 Cr for 30 Years21 to 70 yearsUpto 90%
Bank of BarodaRs. 10 Cr for 30 Years21 to 60 yearsUpto 90%
LIC Housing FinanceRs. 5 Cr for 30 Years21 to 60 yearsUpto 80%
Apply-Loan.comRs. 3 Cr for 25 Years23 to 65 yearsUpto 90%
CitibankRs. 10 Cr for 25 Years23 to 60 yearsUpto 80%
DBS BankRs. 5 Cr for 20 Years21 to 60 yearsUpto 80%
DHFLRs. 5 Cr for 30 Years21 to 60 yearsUpto 80%
Kotak BankRs. 5 Cr for 20 Years21 to 60 yearsUpto 80%
Tata CapitalRs. 1 Cr for 30 Years21 to 65 yearsUpto 90%
Bank of MaharashtraRs. 10 Cr for 30 Years21 to 60 yearsUpto 70%
South Indian BankRs. 5 Cr for 30 Years21 to 65 yearsUpto 90%
HSBC BankRs. 10 Cr for 25 Years21 to 60 yearsUpto 80%
United Bank of IndiaRs. 3 Cr for 30 Years21 to 60 yearsUpto 90%
Andhra BankRs. 10 Cr for 30 Years21 to 65 yearsUpto 90%
Punjab and Sind BankRs. 5 Cr for 30 Years21 to 70 yearsUpto 80%
Jammu And Kashmir BankRs. 5 Cr for 15 Years21 to 60 yearsUpto 80%
EdelweissRs. 5 Cr for 25 Years21 to 60 yearsUpto 80%
IDFC First BankRs. 10 Cr for 30 Years21 to 60 yearsUpto 85%
Canara BankRs. 10 Cr for 30 Years21 to 55 yearsUpto 80%
Syndicate BankRs. 5 Cr for 30 Years21 to 60 yearsUpto 90%
Standard Chartered BankRs. 15 Cr for 20 Years21 to 60 yearsUpto 80%
Lakshmi Vilas BankRs. 5 Cr for 20 Years21 to 65 yearsUpto 80%
IDBI BankRs. 10 Cr for 30 Years22 to 70 yearsUpto 90%
DCB BankRs. 10 Cr for 20 Years21 to 60 yearsUpto 80%
LT Housing FinanceRs. 10 Cr for 30 Years23 to 65 yearsUpto 90%
PNBRs. 1 Cr for 30 Years21 to 60 yearsUpto 80%
RBL BankRs. 10 Cr for 25 Years24 to 60 yearsUpto 90%
Karnataka BankRs. 5 Cr for 30 Years21 to 60 yearsUpto 80%
Federal BankRs. 15 Cr for 30 Years21 to 60 yearsUpto 85%
Piramal Housing FinanceRs. 5 Cr for 30 Years23 to 60 yearsUpto 90%
Central Bank of IndiaRs. 10 Cr for 30 Years18 to 60 yearsUpto 90%
UCO BankRs. 5 Cr for 30 Years21 to 60 yearsUpto 90%
Indian BankRs. 5 Cr for 20 Years18 to 60 yearsUpto 90%
Dhan Laxmi BankRs. 2.50 Cr for 20 Years21 to 60 yearsUpto 80%
Yes BankRs. 5 Cr for 25 Years21 to 60 yearsUpto 90%
Bank of IndiaRs. 5 Cr for 30 Years21 to 60 yearsUpto 80%
Reliance CapitalRs. 5 Cr for 30 Years21 to 60 yearsUpto 80%
Karur Vysya BankRs. 5 Cr for 25 Years21 to 60 yearsUpto 75%
GIC Housing FinanceRs. 3 Cr for 20 Years21 to 60 yearsUpto 80%
Corporation BankRs. 5 Cr for 30 Years18 to 65 yearsUpto 90%
Union Bank of IndiaRs. 5 Cr for 30 Years21 to 60 yearsUpto 80%
Allahabad BankRs. 5 Cr for 20 Years21 to 60 yearsUpto 90%
OBCRs. 3 Cr for 25 Years18 to 60 yearsUpto 80%
Indian Overseas BankRs. 5 Cr for 30 Years21 to 60 yearsUpto 80%

Housing Loan Eligibility Criteria

Minimum and Maximum Age
  • 18 - 70 years. However, some banks different minimum and maximum age for salaried, self employed and self employed professionals
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
Loan Tenure
  • Maximum loan tenure up to 30 years. However, some banks restrict loan tenure to 25 years
Interest Rate
  • 8.35% to 12.00%
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
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
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
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
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.
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.

Housing Loan Eligibility – Tips

  • Apply with a co-applicant: You can boost your eligibility by adding an earning spouse or your parents as a co-applicant. Taking a joint loan with the co-applicant increases your income and eligibility to borrow more money. Suppose, your monthly income is Rs. 30,000 and the loan amount you are eligible for is Rs. 15 Lakh, If you add your spouse as co-applicant, earning Rs. 20,000 per month, can increase your eligibility to Rs. 25 Lakh. So, it is advised add a co-applicant, wherever possible, to improve your eligibility.
  • Clear your existing debts: If you have running loans and you are paying other EMIs because of which your loan amount eligibility is low, you may want to prepay some of your existing debts to improve your eligibility. Say, your monthly income Rs. 35,000 per month and you have a credit card outstanding of Rs. 10,000. In this case, your eligibility decreases as your FOIR is calculated on your income left after paying obligations. So, pay your credit card dues and then apply for a fresh loan for higher loan amount
  • Increase loan tenure: Apply for a tenure which is maximum to your age. If you apply for housing loan for 30 years, it will enhance your eligibility as the EMIs go down. In this case, however, you will end up paying more interest by the end of the tenure. In contrast, if you take loan for 10 years tenure, you might be eligible for a lower loan amount.
  • Complete market research: One must do complete market research as the home loan interest rates keeps on fluctuating. Fixed rates remain same during the tenure and floating rates change with change in MCLR or base rates. It is important to study the changes in home loan rate of various banks in response to MCLR to understand the responsiveness of banks to market rate changes.
  • Other income source: Higher income enhances your eligibility. If you are earning income through other sources such as rent, then don't forget to mention the income with complete proof as it can increase your eligibility for a high loan amount.

Illustration – Mr. A, 30 years old, wants to purchase a home whose property value is Rs. 60 Lakh, His net income is Rs. 50,000 per month and he has no other fixed obligations. Banks will calculate Mr. A’s loan amount eligibility based on his age, net income and his fixed expenses as a % of his net income. Based on the loan amount Mr. A is eligible for, he will be offered home loan rate corresponding to the slab he falls in and that will be used to calculate his EMI. In Mr A’s case, he will get the following results for various banks on a home loan eligibility calculator.

BankLoan Amount EligibilityInterest RateEMI
SBIRs. 48.45 Lakh for 30years8.05%Rs. 35,718
HDFCRs. 35.71 Lakh for 30years8.40%Rs. 27,208
ICICI BankRs. 43.09 Lakh for 30years9.05%Rs. 34,829
Axis BankRs. 45.35 Lakh for 30years8.60%Rs. 35,191
PNB Housing FinanceRs. 43.09 Lakh for 30years9.05%Rs. 34,829
DBS BankRs. 41.27 Lakh for 20years9.45%Rs. 38,334
DHFLRs. 40 Lakh for 30years9.75%Rs. 34,366
IDBI BankRs. 44.57 Lakh for 30years8.75%Rs. 35,064
IDFC BankRs. 41.71 Lakh for 30years9.35%Rs. 34,617
Apply-Loan.comRs. 35.68 Lakh for 25years9.25%Rs. 30,552
  • As you can see in the above table, loan amount eligibility differs for different banks. Hence, it is extremely important to compare the eligibility terms and interest rates of different banks before choosing the bank to borrow from.
  • Banks offering highest eligibility of Rs. 48.45 Lakh are SBI.
  • Minimum eligibility of Rs. 35.68 Lakh is offered by Apply-Loan.com .
  • EMI amount ranges from Rs. 27,208 to Rs. 38,334 at different interest rates offered by banks.

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