Home Loan Eligibility Criteria
For Residents:
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Resident Salaried |
Retirement Age |
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Resident Self Employed |
Up to 65 years
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For NRIs:
- NRI individuals including salaried people, self-employed and business persons are eligible for Housing Loan.
- Persons of Indian Origin (PIO) are also eligible for Housing Loan subject to following conditions:
- The loan is covered by primary / collateral security of immovable property in India in the name of PIO.
- The PIO should hold a valid PIO Card accompanied by a valid foreign passport.
- A close relative (as defined in Companies Act) residing in India should join as co-obligant to the loan.
- Age of the borrower should not exceed 55 years at the end of loan tenure.
- Monthly income should be not less than Rs. 50000/-.
- To avail the loan, you can apply online in simple steps. After submitting the application, bank will process your application and will be informing further details. You can track the progress of application too.
Frequently Asked Questions
1. What is Home Loan Eligibility?
Home Loan Eligibility refers to the criteria used by banks to determine whether a customer qualifies for a home loan and the amount they can borrow. It is based on factors like your income, age, employment type, credit score, repayment capacity, and existing financial obligations.
2. What Factors Determine Your Home Loan Eligibility?
Several key factors influence your home loan eligibility:
- Monthly Income: Higher income improves loan eligibility.
- Credit Score: A score of 750+ enhances your chances of approval.
- Employment Status: Stable employment or steady business income increases trustworthiness.
- Age: Determines your repayment period and impacts eligibility.
- Existing Liabilities: Current EMIs or loans can reduce your eligible loan amount.
- Property Value: The property’s market value and legal status also play a role.
3. How Does Age Impact Home Loan Eligibility and Loan Tenure?
Age plays a crucial role in determining both the loan amount and repayment tenure:
- Younger Applicants (25–35 years) can opt for longer loan tenures, making higher loan amounts more feasible.
- Older Applicants (50 years and above) may be eligible for shorter tenures due to their proximity to retirement, which may limit the loan amount.
4. What Factors Determine Home Loan Eligibility?
Home loan eligibility is assessed using multiple factors such as:
- Income and Repayment Capacity
- Age and Loan Tenure
- Credit History and Score
- Job Stability or Business Continuity
- Co-applicant’s income (if any)
- Existing Financial Commitments
- Value and condition of the property
5. How is the Home Loan EMI to be paid?
Your EMI will be automatically deducted every month from your linked Federal Bank savings account on the due date. You just need to ensure sufficient balance in the account. Alternatively, standing instructions or post-dated cheques can also be used, based on your convenience.