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Almost everyone in this world dreams of a home of their own home. But everyone can not have that must wealth to make own home. In this case, the home loans from different banks can pay a very big role. They give loans with some criteria.

To get home loans in India, some common criteria are followed by all the banks. Following are some requirement that is maintained by the home loan providers in India:

Employment Stability

 It is the main parameter for home loan consideration. The applicant has to be employed or self-employed at the same profession as the time of application for at least 2 years.

If the applicant is a self-employed person, then they have to be employed for at least 5 years with their total earning. Without filling this, the procedure can’t be taken forward.

Age Criteria

If the applicant is younger then there is more chance to get home loans in India. Most banks offer home loans if the applicant is employed within the age range of 20-60 years.

However, if the applicant is self-employed, it can be changed into 24-65 years old.

Credit Rating

Along with the applicant’s company performance, the personal credit rating is a very big aspect for the home loan providers in India. Better credit rating may expand the percentage of assuring the loan with more flexibility on the loan amount, EMI, tenure and interest rates.

Some past histories can reflect negatively on the applicant. Such as Default payment records, fraudulent tracks, and outstanding loans. These can make the bank to cancel the request as well as to charge a higher interest rate.


If the candidate is working with an executive who has a high prominence and vital turnover, the reliability of the appellant will severally progress. Being a part of alleged and high turnover fellowships is an asset for the candidate especially when it comes to demanding for a home loan.

Financial Situation

This is a sector where not only the present but also the history of the financial situation is checked. It is one of the key ways to success in this field. If the past financial records are good, it can lead the person to get the loan easily as well as to get a less interest amount.

These were the common ways to select for applicants to select for home loans. Following are some steps on how a bank offers loan to an individual.

Step 1: At first the salary slip and bank statement will be checked.

Step 2: The amount of savings is checked. Bank assumes 30% of your total income as savings.

Step 3: If there are existing loans, EMIs will be taken from them.

Step 4: By doing a backward calculation bank decides how much can be offered to a particular person.

These were the basic requirements that are checked before giving home loans in India. But again, it may vary from bank to bank.

Post Author: useryknawal

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