Buying a dream house in India may be one of the top priorities of all the working professionals in the country. Being a homeowner has its own benefits and property is deemed as one of the best investments a person can make in the current financial climate.
Though houses and property are one of the hottest commodities in the country for investors and working professionals, they are also getting more and more expensive each day. Almost everyone who buys a house first has to take out a home loan from a bank.
Taking out a home loan means that you can make monthly payments of EMI towards your house, and then can fully own it in a period of several years. An interest rate is also applicable on the home loan payment, depending upon the banks.
Though applying for a home loan is the best way to go while thinking about purchasing a house, the application process for the same can be very tedious, especially keeping in mind the intricate criteria required for the same.
The actual home loan criteria while purchasing property are different for each bank, but there are a few general terms that one must keep in mind at all times. Mentioned below are the general eligibility criteria to apply for a home loan.
Eligibility criteria for a home loan
- General age group – 18 to 70 years
- Income – Equal to or above Rs 25,000
- Credit Score – Ideally above 750
- Working experience – Over 2 years
- Residence type – Permanent Resident or Non-Resident Indian (NRI)
- The loan can be taken out for several property types such as Completed /Under Construction projects, Land/Plot, build on own Land, Buy Land and Build Home.
It must be noted that the loan eligibility criteria set by each bank are different and so is the interest rate. Mentioned above are the general eligibility rules for a home loan. Usually, banks offer a loan up to Rs 10 crore in most cases and set the interest rate according to the credit score of the person.
