A home loan is one of the most secure ways to organise funding for the purchase or renovation of a property. Moreover, you can also gain income tax benefits while repaying your home loans.
However, fulfilling the home loan eligibility criteria set by a lender is mandatory to avail of this financial product.
Home loan eligibility criteria
- Age: If you are a salaried individual, then your age should be 23-62 years, and if you are a self-employed individual, then it is 25-70 years. However, this condition may vary from one HFC to another.
- CIBIL score: It is a three-digit number representing your credit history and creditworthiness. Lenders evaluate this score to estimate your credibility as a borrower. They consider a credit score of 750 or above as ideal while sanctioning a loan.
- FOIR: FOIR or Fixed Obligation to Income Ratio portrays the percentage of your income, which you spend to meet all you fixed financial obligations. If your FOIR is more than 50% of your income, it lowers your eligibility.
- Monthly income: Every lender has different criteria regarding income, but typically your minimum salary should be Rs.20,000 - 25,000 for you to be eligible for a home loan.
Use a home loan eligibility calculator to check the amount you can avail depending on your current monthly income and other factors.
Home loan eligibility criteria differ from one financial institution to another. Therefore, you must check the requirements of a lender before applying for credit.
