Buying a house by getting a home loan is one of the best options that bring happiness to every person’s face. So, to get a home loan from any bank, you must check your eligibility criteria because it all depends on your income source, assets, documents, age and credit score.
It requires a vast amount, which you can meet by taking a home loan from any bank. Therefore, it is best to get a loan that can help you become a property owner.
A home loan not only allows for wealth creation, but you can also avail of tax benefits. So, to proceed, make sure you have a certain amount on hand.
Because you only get 90% of the loan against the value of your property, you will have to pay the rest. Check out the home loan eligibility criteria, documents and interest rates below.
Home Loan Eligibility Criteria
Home loan eligibility mainly depends on your income and repayment capacity. If your salary is at least more than 25 thousand then you can expect a home loan. Apart from this, these factors also determine, such as your age, financial status, credit history, credit score, other financial obligations etc.
If you have an account with the bank where you are applying for the loan, you will get help. The eligibility criteria for availing of home loans for salaried and self-employed individuals are as follows:
- Nationality: Indian
- Your present age: Age plays a vital role in the home loan. The maximum loan tenure is 30 years. If you have crossed 50 years of age, getting a home loan can be difficult.
- Age limit for Salaried persons: 21 to 60 years.
- Age Limit for Self-Employed Persons: 21 to 60 years.
- Employment period: The minimum employment period of 3 years.
- Minimum Salary: ₹25,000 p.m.
- Minimum business income: ₹2 lac p.a.
- Maximum Loan Term: 30 years.
- Past and Present Credit History: A clean repayment record is considered a positive for a home loan.
- Civil score: 750 or above.
Here is how you can increase your eligibility for a home loan.
- Open a savings account.
- A steady income flow, regular savings and investments are positive signs.
- Keep the details of your additional income sources.
- If you already have a loan, repay it on time so that your credit score will be good.
- You can add any female family member as a co-applicant.
Documents
These are the documents that you should have on hand before applying for a home loan.
- Aadhaar Card
- PAN
- Bank Account
- Income Proof
- Passport size photo
- Last six months Bank Account Statements
- Salary slip for the past three months
- Educational qualification certificate
Interest Rates 2024
The loan amount and interest have to be repaid within a stipulated period at your convenience. The interest rates of different banks are as follows:
| Bank Name | Interest Rates |
|---|---|
| Axis Bank | 7.60% p.a. |
| Bank of Baroda | 7.45% p.a. onwards |
| Bank of India | 7.45% p.a. |
| Bank of Maharashtra | 7.30% p.a. onwards |
| Citi Bank | 6.65% p.a. |
| Canara Bank | 8.10% p.a. onwards |
| Central Bank India | 7.20% p.a. |
| Dhanlaxmi Bank | 8.30% p.a. onwards |
| DHFL Housing Finance | 8.70% p.a. |
| HDFC Ltd. | 8.10% p.a. |
| HSBC Bank | 7.35% p.a. onwards |
| Indian Overseas Bank | 7.05% p.a. |
| Jammu and Kashmir Bank | 7.80% p.a. |
| Punjab National Bank | 7.45% p.a. onwards |
| State Bank India | 8.05% p.a. |
| South Indian Bank | Repo rate + 3.30% p.a. onwards |
| Yes Bank | 8.85% p.a. |
| Union Bank of India | 7.85% p.a. onwards |
| IDFC Bank | 7.60% p.a. onwards |
| ICICI Bank | 8.05% p.a. onwards |
| IDBI Bank | 7.65% p.a. onwards |
Both the principal loan amount and the interest repayment are eligible for tax deduction under income tax laws.
Best Banks for Home Loan
These are the top seven banks in India where you can get an instant home loan with minimum income. Bank employees also help you in providing home loans. All you need to do is prepare the principal amount and documents for the down payment.
- HDFC
- SBI
- ICICI
- IDBI
- IDFC
- Axis
- Citi
If you have an account with the same bank, you will get the home loan soon, and if you have a good past repayment record, then you will get successful. You can apply for a home loan by visiting a bank branch, or loan processing centre, or you can apply online through the official website.
How to Apply for a Home Loan?
You can check your eligibility by phone call or by visiting the branch; if all is well, then you can apply for a home loan online from your living room.
Before applying for a home loan, you should check all the documents, related to the property. Documents are as follows but may vary state-wise.
- Sale deed from the seller
- Copy of the earlier sale deed
- Land measurement Documents
- Encumbrance Certificate
- Survey Number
- Allotment Letter from the government
- No objection certificates
- Tax receipts
- Fully approved Layout Plan
- Allotment Letter from the authority
- Approved building plans
If the property value suits you, apply for a home loan online; within minutes, a bank agent will contact you. Otherwise, you can directly visit the branch and talk to the bank agent. Whatever the property’s value, you will get a home loan of seventy to ninety per cent. You have to keep the rest of the money ready. Keep Xerox copies of all the documents with you.
See also – Tata credit card loan
FAQs
A: You can expect good interest rates with SBI, HDFC, ICICI and some other banks.
A: Home loan approval takes at least 10 days.
A: You can change your banks after approval of your home loan.
