What are the eligibility criteria for a home loan?

The key eligibility criteria for availing a home loan are typically the following:

• Income Proof: You need to provide documents like salary slips, bank statements, ITRs etc., to prove your income level and repayment capacity.
• Credit Score: Your CIBIL score needs to be in the desired range set by the lending company you are applying with. A CIBIL score of 700+* is usually required to be approved for a home loan with favourable loan terms. However, several financial institutions also provide home loans to those with a lower CIBIL score.
• Age: Your age should typically be between 21 to 60 years to avail a home loan.
• Work Experience: If you are salaried, you will usually need a minimum of 2 years of work experience in the same company or profession. If you are self-employed, 3 years in the same business are usually required.
• Down Payment: You need to make a down payment of 20-25% of the property value. A higher down payment improves your chances of loan approval.
• Property Papers: The property you are buying should have a clear title and valid documentation.

Meeting the eligibility criteria as per the loan provider’s guidelines is important for quick processing and approval of your home loan application.