The first step when applying for a loan includes checking the eligibility criteria. The loan is passed only if you match the eligibility standards. Once you are eligible for the loan, the process of application becomes very convenient and fast. The eligibility criteria vary based on whether an individual is salaried or non-salaried.
In salaried individuals, one criterion becomes the job experience Whereas, in non-salaried individuals, is business experience. Salaried applicants should be at least 18 years of age and have a minimum monthly income of Rs 25,000. The minimum work experience needed for acceptance is 2 years. In non-salaried applicants, the minimum age requirement is 25 years. The business experience should be at least 3 years. The credit score in both should be 750 or above.
Factors Increasing Or Decreasing Your Chances Of Eligibility:
There is a thorough verification process and then the application is approved or disapproved. The lender has specific criteria to ensure that he gets the repayment on time. Not everyone can meet this criterion and be able to get a home loan. To meet the criteria, there can be several factors involved in the home loan eligibility calculator affecting your chances of getting through:
- Age Of The Applicant Must Fall In The Required Range: The home loan is never a small amount, it is always in big figures. It usually takes a lot of years, sometimes even more than 30, to repay the loan amount with interest. This is why the maximum age limit criteria is generally that of the age of retirement.
If an applicant is applying for a loan at a young age, he/she can go for a longer tenure of repayment. They have an advantage that they’ll be having more working years than other applicants. The range of application age can be between 18 years(minimum age) till 70 years(maximum age).
- Employment And Income Are The Deciding Factors Of Eligibility: An applicant with higher income will be able to repay the loan faster. Hence, these are the first choice of people for the lenders. Lenders always check for a legit and regular income source of the applicant. The government employees come with very high job security. Hence, they can enjoy a loan with a very low-interest amount.
- Credit Score- A Key Decisive Factor: Credit score depends on the bank history of the individual, number of accounts open in the bank, total debt on the individual, etc. These factors define the creditability of the person for repayment of the loan. The credit report is made and the score is calculated. The minimum credit score required should at least be 750.
The credit score is one decisive factor that is directly proportional to your loan’s chances to be accepted. A poor credit score is completely unacceptable and will directly lead to the rejection of the application.
- Value Of The Property To Be Bought Is Assessed: Whenever it is a home loan, the lenders prefer to check the property first. They can personally visit the property to check the physical condition of the property, the market value, and also the building specs. The maximum loan amount will not exceed more than ninety percent of the total value, as per the guidelines of RBI.
As it is done in every loan, the person needs to pay a down payment. The person should be able to afford to pay the remaining ten percent to be eligible for the loan. The more the down payment, the lesser will be the loan amount and the EMIs. You can also calculate your EMIs through a home loan EMI calculator.
- The Capacity Of Repayment Of An Individual: The security of the lenders that an individual will be able to repay the loan is of utmost importance. This procedure of assurance requires a lot of calculations to be sure. One calculation can be that of the debt to income ratio of the individual or the net monthly income. Other possibilities are also considered to check if the loan bearer will be a high-risk candidate or a low-risk one.
One should always consider and double-check these points to be sure that their application gets accepted. If you are short of any points, try and remove them and make a clean profile to double your chances for acceptance.
