Owing your owned house is one of the dreams which every individual sees. The increasing property rates and to get all the tax benefits, opting for Home loan is a common option one looks for. Before applying for home loans one should check his eligibility.

Your Home Loan Eligibility-

All the banks have their own method of calculating the eligibility criteria of the applicant. Now a day’s Online Eligibility calculator are available. Before finalizing your lender we suggest you to check your eligibility with various banks. This will help you to check which bank is offering you higher eligibility.

Lets see the eligibility factors for salaried class. The following factors play a vital role in deciding your loan amount.

Profile

Borrower should be a resident of India. He or she should be an employee of a Public Limited company, Multinational company or Private limited company. Salaried Doctors, CA, Engineers, Government sector employees including Public sector undertakings and Central and local bodies are eligible for home loan.

Age

Applicant should be minimum 21 years of age while applying for home loan. Many public sector banks even give home loans to individuals who are 18 years of age. But mostly applicants who are 21 years old are eligible for this loan. Maximum age at loan maturity should be 58 years in case of salaried individual and 60 years in case of public limited and government employees.

Monthly Income

Monthly salary is the most important factor while deciding the eligibility of the customer. Net salary of the borrower decides the loan amount. Mostly banks lends home loan up to 65 times of an individual’s net income. For example , if your take home salary is 35,000/- then you are eligible for the home loan of around 22.75 lacs.

Other Monthly Outgoings

If an applicant has availed some other loan from any other bank and you are still repaying it on monthly basis. This monthly outgoing is also taken into consideration while deciding your eligibility. It is considered on the amount left with you after deduction of any EMI amount that you are currently paying for any kind of loan. Your Home Loan Eligibility will be calculated after deductions of all the EMIs that you are currently paying on monthly basis.

Property Attributes

Most banks provide maximum up to 85% of loan against the value of property. For example, if applicant wants a Home Loans for buying a property of Rs. 70 lakhs, the maximum amount he can get is 85% i.e. 59 lakhs.

Banks also consider other specific criteria before accepting the property for granting a loan. The banks have specific norms such as the minimum area requirements for a flat carpet area of built-up area. The banks also consider the age of the property, the location, reputation of the builder in case it is a builder property. The banks also conduct various analyses to check whether the property is in dispute or clear, whether the bank is free from any encumbrances, etc. All these factors are checked before the loan is sanctioned.

Years in city

Minimum Applicant should be residing in the current city for the past two years before applying for home loan. Applicant should be staying in the current residence for at least one year. This factor adds to the credit score which decides the loan eligibility of the customer.

Total years in job / profession

Minimum 2 years of work experience is required before applying for home loan. Applicant should be a confirmed permanent employee of the organisation.

Co-applicant

Applicant can increase the eligibility for home loan by clubbing a co-borrower and in this way he can enhance his eligible income. Applying in the category of co-borrower increase the chances of loan approval without many complications. Although, banks allow only certain relationships to become the co-applicant. Friends and relatives who are not in direct blood relation are not eligible.

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