It’s essential to meet the eligibility criteria for a home loan and provide all the required documents to show your reliability and satisfy the lender. But before that, you need to assess your creditworthiness yourself. For that, ensure to have a credit score of or above 750. It can also help you get industry-best housing loan interest rates.
Steps to Take Before Checking Eligibility Criteria and Documents Required
First, you need to choose a reputed lender and see the home loan benefits it offers. A top lending bank offers these benefits:
- Tailor-made loans with basic documentation
- Higher eligibility for salaried and self-employed applicants
- Digital process for loans up to ₹5,00,00,000 and repayment tenure up to 30 years
- Lowest home loan interest rates
- Up to 100% top-up at the same rate as that of balance transfer
- An additional top-up facility according to your repayment track record
- Balance transfer from all NBFCs, HFCs and banks
- Legal report waiver for balance transfer from leading NBFCs and banks
Eligibility Criteria to Apply for a Home Loan
You must meet the eligibility criteria specified by the lending bank to qualify for a home loan. So, check the criteria on the official website of the bank and make sure that you meet the same.
At some banks, the eligibility criteria for self-employed borrowers are:
- They should be Resident Indians only.
- Their age must be between 23 and 70 years.
- They must be running their businesses for at least 4 years now.
- They should earn at least ₹1,50,000 per year.
- They must choose a loan tenure between 12 and 300 months.
For Salaried Individuals:
- They need to be Resident or Non-Resident Indians.
- Their age should be between 21 and 60 years.
- They must have at least 3 years of corporate experience
- They should earn at least ₹1,00,000 per year.
- They must choose tenure between 12 and 360 months.
Once you meet the eligibility criteria, you can go ahead to apply for the loan. Ensure to choose a suitable tenure within your eligibility on a house loan calculator to prevent your application from being rejected.
Documents Needed to Apply for a Home Loan
Wondering, what documents are required for a home loan application? You usually need to submit the following documents:
- Valid identity proof
- Valid address proof
- Valid business proof (for self-employed applicants)
- Valid income proof:
- For salaried applicants: Bank statement for the last 6 months, Form 16, the latest ITR or salary slips of the last 2 months
- For self-employed applicants: Credit card statements or bank statements for the last 6 months, GST return, P&L statement, balance sheet or the latest ITR
- Valid property proof:
- Photocopy of chain title documents and draft sale deed, if any
- Possession/allotment letter
- A No Objection Certificate from the society and any other documents based on a legal report
Usually, the higher your eligibility, the higher the loan amount you can borrow and the lower the housing loan interest rates you can avail yourself. If needed, you can try boosting your eligibility by adding a co-applicant with a good credit repayment record.