The eligibility criteria of a Home loan applicant is as follows:
Value Of The Property
The value of property to be purchased determines the amount of loan that will be approved. It’s approximately 80% of the market value of the property
Your current income from salary or self-employment must sufficient to pay monthly EMIs of the loan.
Nature of the job and organisation
Credibility of the employer, position in the organisation, and nature of the profession/business (in case of self-employed) impact your eligibility for a loan. Also, the continuity of the income, i.e. stability of the income from job or business is a factor affecting the eligibility.
Your credit score which is a function of your credit history such as repayment pattern of earlier loans, credit card limit utilisation, defaults in payment of EMIs, among other factors is very important determinant of your eligibility.
Current EMIs/credit card outstanding
These are the fixed obligations from your monthly salary which reduce the disposable amount from your income. More the current obligations, lesser is the amount left for paying the EMIs of a new loan.
There may be other criteria set by lenders such as profession, age, minimum salary amount, residence, experience, minimum profit for self-employed, security, guarantor, etc.
Documents Required :
3 month salary slip
Last 6 month bank statement
2 years FORM 16/ITR
Office ID Card
2 Passport size photos
Terms & conditions :
It varies from 7% to 12% p.a. depending upon the lender and the financial condition and credit history of the borrower. It can be (based on MCLR) or fixed.
It varies from 1 year to 6 years.
It varies from 1.5% to 5% with a minimum and maximum limit and is paid upfront on the loan amount.
In case principal amount is partly paid before it falls due, a prepayment fee is charged. It varies from 2% to 5% of the principle outstanding depending upon the time elapsed and/or amount outstanding. Foreclosure is when entire amount is prepaid.
Loan cancellation charges
If the loan is cancelled after its approval or disbursal, a cancellation fee may be charged by the lender.
Late payment charges
It is charged on a per month basis in case of delay in payment of EMIs over and above the usual interest.