With convenient high-value loan schemes being offered by numerous NBFCs and financial institutes, buying a dream house has become extremely easy for individuals. Not only do these housing loan schemes offer very high amounts going up to Rs. 3.5 Crore, but they typically also offer a lengthy tenure for repayment which stretches up to 20 years. Additionally, under PMAY initiative launched by the government of India, many subsidies are provided on the rate of interest on home loan schemes; though it depends on numerous other factors too. Most crucial of these are the income of an individual along with their lack of any brick and mortar house.
Considering there are numerous interested customers who want to avail these loan schemes to acquire their dream houses, it is imperative to have a detailed knowledge of the home loan eligibility criteria. The eligibility criteria for employed individuals differ from those of self-employed individuals. However, for both the groups it is crucial to note how a credit score can determine the home loan EMIs as well as the eligibility itself. The underneath discusses all the necessary criteria to avail a home loan scheme for both the groupings of customers.
For employed customers:
- Applicant must be a resident of India.
- The minimum age for eligibility is at 23 years while the maximum age goes up to 62 years.
- Applicant must have at least 3 years of work experience.
For self-employed customers:
- Applicant must be a resident of India.
- Minimum age under this category begins at 25 years while the maximum limit goes further up than salaried individuals at 70 years.
- The current business of the self-employed applicant must have been running in continuity for the last 5 years.
Evident from above, the eligibility criteria for housing loans by financial institutions and NBFCs are typically not too demanding. There are several lenders who also ensure minimal document requirements, making the application process more convenient for the applicants.
While applying for these loan schemes, basic documents necessary for both salaried as well as self-employed individuals are the same. However, there are minor differences especially in terms of documents pertaining to income. The underneath lists all the crucial documents required for home loan scheme from financial institutions in India.
- KYC documents
- Identity proof of the applicant.
- Address proof of the applicant.
- Photograph
- Bank account statements for the last 6 months.
- Form 16 or latest salary slips. (only for salaried individuals)
- Documents including balance sheets to prove 5 years of continuity in the current business. (only for self-employed applicants)
It is vital to note that a few additional documents might be required by financial institutions or NBFCs at the time of loan application. However, these are very specific to individual instances to cater to technical difficulties that customers might be facing in providing any of the above documents. While decoding the home loan process in India might feel like a difficult venture, the above clearly shows that eligibility criteria are not too demanding.
For customers who have chosen their dream house and are considering the application of home loans, it is advisable to calculate their EMIs before-hand once they have shortlisted the NBFC and the scheme. Individuals can easily use an EMI calculator to calculate the exact payable EMI amount. The procedure of calculation typically involves all necessary information of the customer which includes income as well as the tenures they are to opt for repayment.
From eligibility criteria to documents required, along with the application process itself; NBFCs have especially taken the initiative to make housing loan schemes convenient for their customers. Consequently, the above listing should further aid customers in deciding their approach towards the loan application.
