When you are seeking a housing loan in India to finance the purchase of your dream home, it is smart to know the details of the loan and what it requires of you in terms of eligibility before you begin your application. The home loan eligibility criteria vary across different lenders and usually comprise factors such as your age, credit history, and stability of income. If you are planning to apply for a home loan with Bajaj Housing Finance Limited, the eligibility terms are easy to meet so that you can avail the loan in a quick and hassle-free way.
Once you meet these eligibility terms, you can get a favourable home loan interest rate that makes your home loan EMI more manageable. In order to ascertain your eligibility and calculate the loan amount for which you qualify, you can use the online home loan eligibility calculator for ease.
Here are the Bajaj Housing Finance Limited home loan eligibility criteria; however, keep in mind that these are indicative terms. Self-employed professionals such as doctors and CAs can also avail of a personalised home loan from Bajaj Housing Finance Limited.
- Home loan eligibility criteria for salaried professionals
- Nationality: Indian
- Age: 23 to 62 years
- Employment status: At least three years of experience
- CIBIL score: 750 or higher
- Minimum income: City-specific (see table)
Home loan eligibility criteria for self-employed professionals
Age: 25 to 70 years
Employment status: A minimum of 5 years of business continuity
CIBIL score: 750 or higher
Read on to learn more about how these factors affect your eligibility for a housing loan in India.
Eligibility factors related to finances
Age: Your age is a big determining factor as older applicants have a lower earning capability since the number of years they can work for in the future are limited. So, the closer you are to the retirement age, the shorter your loan tenor or amount is likely to be. If you are a young professional, you can opt for a longer loan tenor, but be advised that this will affect your home loan interest rate as longer tenors attract higher interest.
Employment and income: Employment and income stability are important parameters of the home loan eligibility criteria. They are indicative of your financial stability during the tenor of your home loan. A stable income assures lenders that you will be able to repay your loan on time, whereas erratic income or gaps in your employment add to the risk you pose as a borrower.
Eligibility factors related to repayment ability
Credit score: Your credit score lets lenders know of your potential to default during repayment. The score is based on your repayment history with other loans and credit cards, giving financial institutions a glimpse into your credit habits. Your eligibility will drop if your CIBIL score is less than 750.
In fact, with a poor CIBIL score, there is a high probability that you either will not qualify for the loan or get a lower loan amount at a higher rate of interest. So, build better credit and improve your chances of qualifying for a housing loan in India.
Fixed obligation to income ratio: This is commonly referred to as FOIR and is the percentage calculation of your monthly expenses and obligations in comparison to your income. As a borrower, your FOIR should not exceed 50%, as this is viewed by lenders as less than ideal for the loan approval.
Eligibility factors related to property valuation
Property details: The valuation of the property that you are planning to buy is determined by factors including its condition, age, location, and amenities. Based on these factors, the lenders will calculate its current market value. A property with a higher market value increases your eligibility for a housing loan in India.
Loan to value ratio: The LTR is the maximum loan amount that lenders can approve against the current market value of the property. When you apply for a loan with high LTV, your eligibility decreases slightly, and this may lead to a higher home loan interest rate. So, try to make a larger down payment and decrease the LTR to increase your eligibility.
Now that you understand the factors that affect your eligibility for a housing loan in India, you can improve your chances of qualifying for the Bajaj Housing Finance Limited Home Loan. This high-value loan with a flexible tenor of up to 360 months enables you to borrow and repay comfortably. You can also get a top-up loan for additional funding here and get proper legal and financial guidance about home purchase with a property dossier. A competitive home loan interest rate and other attractive features such as property search services, an online account management service, as well as quick processing make this an ideal home financing solution. Make your dream a reality today and apply online with a simple application form.