Want to Know Your Housing Loan Eligibility

A Housing loan is a step taken by the banks to make the dream of owning a house more accessible and easy for one and all. The grant of housing loan is a moment of happiness for many as it clears all the confusion and provides with the monetary solution to be an owner of a house.

Overall it is a boon to those who dream to own a house but their pocket doesn't allow to spend a hefty amount to get one. A home loan makes it possible to have a space of your own. All most all banks as well as the Non-Banking Financial Companies (NBFC) have the scheme of providing the home loan.

It can be taken to build a property, renovate a home or buy a house. It is a secured loan, a bank provides only 70 -80 percent of the amount of the home or property. The rest amount is provided by the borrower, also the ownership of the property remains with the banks till the repayment of the loan. Before applying for the loan one needs to know the housing loan eligibility criteria that is required by the bank-

Age- The lender have the set criteria of age limit, it generally provide a home loan to anyone in the age limit of 21- 58 years. The tenure of a housing loan is generally more than 15 years. So if anyone is in their mid 20's then you have at least 20-25 years for repayment of your loan while someone in their late 40's or 50's has 10-15 years for repayments. It is an important criteria to know your interest rate and the monthly installment. The more the age, the interest rate will be higher.

Profession or nature of the job- The applicants can be either a salaried individual or self- employed. The work experience of the salaried individual and the business experience of the self- employed is necessary to get a home loan. The job stability of the applicant is also necessary.  

Personal profile- the number of dependents, the monthly expenses, the number of accounts one hold etc. is also closely scrutinized to check the eligibility of the applicant.

Your CIBIL score is very important to get the sanction of a home loan. The credit history of the individual seeking a home loan is important as its says a lot about the regularities in repayments of your earlier credits. The sanction of a home loan further reduces if one has any pending credit issues or loan.

Attributes of the property-  the demographics of the property is very important to get a home loan. The carpet area of the property, age of the property, its market value, the dispute related to it (if any), are very important factor to which a bank pay full attention, and have a property visit if required.

Documents needed- if all the above criteria are met then the requirement of documents are other eligibility factors. The required documents are:

1. An application of the home loan completely filled with recent passport size photographs.
2. ID Proof- PAN Card, Driving Licence, Passport or Voter ID Card.
3. Residential proof- Utility bills, Passport, Voter's ID.
4. Bank Account statement
5. Signature Identification
6. Detailed information about the other loan if you are currently paying along with lenders information and security mortgage.
7. For salaried- Salary certificate and Form-16
8. For Self- employed-  ITR and Form-16

Property Documents-

1. Agreement sale copy.
2. Certificate of possession.
3. Land tax receipt
4. Detailed cost of construction.
5. Letter of allotment.
6. Original NOC.