HOME LOAN

Document required for a Home Loan

Housing loans provided by banks and NBFCs are secured loans and are provided for a long term, taking into account the amount of the loan and the income of the individual. Different lenders or financiers have different criteria for credit worthiness which include age, income, business, job stability etc.

Home Loan Income Eligibility and criteria for Salaried Individuals

• •Age - The minimum age to apply for a home loan is 21 years, and the maximum age is 58 years or retirement age, whichever is earlier. A home loan should be repaid before the borrower exceeds the age limit set by the Internal Revenue Service.
• •Income - The minimum net income required for a salaried individual is Rs. 20.00 thousand per month
• •Work experience and job stability - The applicant should have at least 2 years of work experience in a full time job.
• •Repayment history for all loans - A salaried person applying for a home loan should have a clear repayment history for all existing and closed loans and credit cards.
• •Type of Residence - A loan applicant must reside at the current residence for at least the last 6 months, or it should be an owned or parental property.
• •Credit score - Employees applying for a home loan should have a CIBIL score (credit score) of at least 700. The CIBIL score depends on your repayment history on bank transactions, loans and credit cards. A good CIBIL score depends on your clear repayment behavior on loans and credit cards. Cases with a CIBIL score of less than 700 will be referred to the bank's policy and risk team for a deviation from loan approval.

Income requirements and criteria for self-employed entrepreneurs for a housing loan

An independent contractor must be a resident of India and have valid KYC (know your customer) and financial statements, as well as a regular and stable monthly business income to repay the loan.

• •Age - The minimum age to apply for a home loan is 21 years and the maximum age is 65 years. A home loan should be repaid before the borrower exceeds the age limit set by the lender.
• •Income - The minimum net income required for a self-employed person is Rs. 2.50 lacs per annum.
• •Work experience and professional stability - The loan applicant must have been in business for at least 3 years at the time of applying for the loan.
• •Repayment history of all loans - A self-employed person applying for a home loan should have a clear repayment history for all existing and closed loans and credit cards taken in the name of the business or individual.
• •Type of Residence - A loan applicant must reside at the current residence for at least the last 6 months or it should be owned or parental property.
• •Credit Bureau Score - Self-employed individuals applying for a home loan must have a CIBIL score (credit bureau score) of at least 700. The CIBIL score depends on your repayment history on bank transactions, loans and credit cards.

To be eligible to apply for housing loan under self-employed scheme, the loan applicant should be running his own business and may be engaged in trade, manufacturing, service, consultancy or professional practice like CA, CS, doctor etc. He should pay income tax and other taxes required by law on time.

NOTE: Apart from the parameters mentioned above, your credit eligibility for a mortgage also depends on the type of property you're purchasing and the area in which the home is situated.

HOW TO APPLY