Get the Tata Capital App to apply for Loans & manage your account. Download Now

Blogs

SUPPORT

Menu  
 
Apply Now
Apply Now

Tata Capital > Blog > Loan for Home > Factors That Determine Home Loan Eligibility

Loan for Home

Factors That Determine Home Loan Eligibility

Factors That Determine Home Loan Eligibility

Have you been dreaming of owning a home of your own? But have the growing expenses always held you back from fulfilling this desire? Well, there’s a way out!

As affordable housing loans are becoming widely available, you can now realise the big picture a lot sooner. Just check home loan eligibility and apply. Sounds simple, right? But there are a few other factors you need to consider to ensure a seamless borrowing process.

1. Age

Most lenders consider age as a vital factor when determining your eligibility for a housing loan. Since it is a long-term financial commitment, they usually calculate your repayment structure directly based on your age and the period you have left as a working individual. This is why younger applicants are often reviewed more favourably than older ones. 

2. Income level

Most financial institutions have a minimum income criterion based on your employment nature and profession, which you have to fulfil to be considered for a loan.

Having a steady source of income also matters while applying for a home loan, as lenders want to be sure of your repayment abilities. The higher your income, the higher the loan amount lenders will be willing to offer you. Several lenders also offer additional benefits like a low-interest top-up loan, EMI holiday, repayment flexibility, and more if they consider you a reliable borrower.

Additional Read: Worried about Your Home Loan Eligibility? Here’s How You Can Ace It!

3. Credit score

Before approving the loan, lenders evaluate your credit score to gauge your financial position and repayment capacity.

This is because your credit score accounts for various aspects of your credit profile like repayment history, the type of loans borrowed in the past, any existing loans or credit card dues, and the number of defaults, if any. It also directly affects the home loan interest rate you’re eligible for.

Consequently, maintaining a good credit score of 750 or above is critical to convince the lenders of your creditworthiness.

4. Employment status

Along with income level, your employment status is equally influential in determining your eligibility. If you’re a salaried employee working in an MNC or a reputed private/public company, lenders will consider you a credible borrower because you have a steady stream of income. Likewise, if you’re self-employed with a stable business income, you can easily get a loan at flexible repayment terms.

To make sure you’re eligible, you can also use a home loan eligibility checker and get a better understanding of the same.

5. Existing debts

Lenders also pay special attention to your current debts and repayment patterns when reviewing your application. While there is nothing unusual about taking multiple loans to meet your goals, it is vital to pay off the EMIs regularly to maintain your credibility.

So make sure to pay your dues on time and introduce financial discipline. After all, a spotless credit profile will increase your chances of loan approval significantly.

Additional Read: How Can a Co-Borrower Increase Your Home Loan Eligibility?

Over to you

Wondering if you’re qualified for a housing loan? Don’t worry! Tata Capital’s high-eligibility housing finance options are just the right choice for you. Connect today to access competitive interest rates, easy repayment options, flexible EMI options, and more. You can also use our home loan eligibility calculator to see if you qualify.

To know more, visit our website today!

Apply For Home Loan

Say Hello to Your New Home with Our Easy Home Loans!

Apply now
Popular Searches
anyror modt charges 712 utara online gujarat pre emi calculator earnest money deposit Goa Land Record earnest money khasra number meebhoomi Assam Land Record
More About Loans
home loan calculating home loan housing loan rate of interest calculate home loan eligibility documents needed for housing loan quick cash loan housing loan top up home loan transfer home loan with overdraft facility home loan balance transfer calculator home loan disbursement process loan for home extension rgrhcl
Disclaimer

Most Viewed Blogs

Trending Blogs

Calculator

Personal Loan EMI Calculator

Personal Loan EMI Calculator
Home Loan EMI Calculator

Home Loan EMI Calculator
Business Loan EMI Calculator

Business Loan EMI Calculator
Used Car Loan EMI Calculator

Used Car Loan EMI Calculator
Two Wheeler Loan EMI Calculator

Two Wheeler Loan EMI Calculator
Loan Against Securities Calculator

Loan Against Securities Calculator
Loan Against Property Calculator

Loan Against Property Calculator
More Tools