Home Loan Eligibility

For a borrower, applying and getting home loan approval can be a tedious and tiresome task as the method to calculate the home loan eligibility differs from lender to lender. One of the primary reasons behind this is the uncertainty in applicant’s income flow and job opportunity. In addition to this, lenders consider various other factors such as your age, current financial stability, your profession, and liabilities before approving and sanctioning loan amount. Well, these are some of the ways through which lenders decide whether or not you would be able to clear or repay the sanctioned loan amount within a stipulated amount of time. Your current financial status, and how much you are likely to earn in the future has a huge impact on the loan amount for you had applied. Some of the important criteria’s are discussed below:

Home Loan Eligibility


Higher is the income of the applicant, bigger is the loan amount sanctioned. The lenders follow a standard calculation method which scrutinizes your income statement. Your income statement includes your total monthly earnings, and income from any other sources such as rent, mutual funds, etc. For instance, a person who is earning 1,00,000/- month would be eligible for a higher loan amount in comparison to the one who is earning 50,000/- month.


The age of an applicant is another important eligibility criteria’s that all lenders ascertain how long the borrower will take to clear off their EMIs. Usually, to avail home loans, an applicant must be between 21 to 60 years of age. Some lenders lend to people up to 65 years of age. For an instance, if an applicant is in his early 40’s would be able to pay the loan only for 20 years whereas an individual applicant in his or her mid 30’s is allowed to repay the loan for 30 years.

Credit History

The home loan comes under the category of secured loan and hence, applicant CIBIL score is one of the major criteria that the majority of lenders consider while deciding your loan eligibility. Generally, lenders require a CIBIL score of 700 and above.


Different professions have different risks associated with them and that’s why many lenders and financial institutions categorize them. The lesser the risk in your profession, higher is your possibility of loan approval so that you can make regular EMI payments and successfully repay the loan. This is why your job stability and nature of your job or profession is considered by lenders while calculating your eligibility for the home loan.

Number of Dependents

The number of dependents has a direct impact on your home loan eligibility. Simply means, greater the number of dependents in your family, chances of your loan sanction gets lower. Lenders count this fixed obligation to income ratio, which simply eliminates a part of your monthly income used to support your family members.

Documents Required For Home Loans

Well, it is possible to get your home loan approval fast if you have all your documents ready beforehand  and meet all the above basic criteria’s mentioned above.

  • Online application form with 2 recent passport size color photographs
  • Identity Proof such as your passport, driving license, Voter-ID, or PAN card
  • Residential Address Proof such as leave and license or registered rent agreement, utility bill up to 3 months old.
  • Your income documents such as pay-slip of last 6 months, Form 16 of last 2 years, and bank statement of last 6 months which reflects income credit and any EMI debit (if any).

How to Apply

You can apply for a home loan by contacting the lender directly or by applying online through us-a simple user friendly contact form. Availing a home loan through an online financial market-place can improve your chances of getting best home loan interest rates, low processing fees, and some special offers. Once you fill the form, the lender will collect all your necessary details and documents and initiate the whole process which includes further checking your credit score, the value of land/property, legal checks, and eligibility calculation. Hence, the lender decides the quantum of loan you are eligible for on the basis of evaluation results.