Eligibility Criteria for Home Loans in India
Marketing of products, especially financial products has now changed and more and more companies are reaching to the customer to create them as a probable customer. One might has received numerous calls on mobile phone as well as land-line phone with “someone” trying to sell you a product on the phone. Many a times these are calls to make people aware of the product. When a customer becomes interested, the business tries to find out if they are eligible to get that particular financial product, similarly to get a loan, you need to be eligible to get one; the eligibility also defines the sum you will receive as a loan. Following are few eligibility criteria’s which a financial institution will be interested in.
- Academics: Educational background is a yardstick to an individual’s career and financial institutions are generally interested to know the same. A master’s degree is a boost to your sound educational background.
- Current Profile: What do you do? And where you want to be? This is specially for the people who are self employed or who have small business.
- Experience: Number of years you have been working as salaried or self-employed.
- Annual Income: Total income at the end of financial year, a history of around 3 years will be required.
- Spouse’s Income: Earning spouse improves your ability to repay and institutions are interested.
- Previous Loans: If you already have a loan then you chances of getting a bigger loans are slim, however you can take a loan to repay a loan. If you have already repaid a loan then that adds to your creditworthiness.
- Owned Assets: If you own assets (land or house) then it can be mortgaged against the loan, making you further eligible to acquire a loan.
- Bank Statements: A bank statement to check your spending and saving habits.
- Tax History: The amount of tax you pay defines your actual earnings, this is especially for self-employed.
- Work Stability: How stable is your work profile? Can you go one the same path fore more than 10-15 years? These are few questions which a financial instruction is interested in.
Banks such as HDFC Bank, ICICI Bank, SBI Bank, Axis Bank, HSBC Bank, Kotak Mahindra Bank have similar criteria.