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Eligibility Criteria Required to Avail Home Loan in India

    IndianMoney.com Research Team | Friday, July 11,2014, 12:22 PM
 

Eligibility Criteria Required to Avail Home Loan in India

home loan eligibility

Age

The minimum age for a salaried person to avail a home loan is 21 years and the maximum age at loan closure is 60 years. For a self employed individual the minimum age is 21-23 years and the maximum age at loan closure is 65 years.

Income

Banks sanction a home loan up to 60 times one’s net monthly income based on age and tenure of the loan. A home loan can be sanctioned even up to 1 crore and in some cases 5 crores.

Documents

Documents required to avail the Home loan in India are the proof of age, a residence proof or an identity proof such as a passport, pan card, ration card , voter’s card, water or an electricity bill.

  • Income proof is a six months bank statement or a salary slip of the past three months or the form 16.
  • Banks check for the flat booking allotment letter.
  • For a self employed /businessman individual IT returns of the last 2 years, Profit and loss account and the audited balance sheet of the past 2 years is a must.
  • One needs to have at least a work experience of 2 years or is in the current job for at least 2 years.

Home Loan in India

One has to make a down payment of 10-20% depending on the cost of the house. The remaining amounts mainly a loan to value ratio of 75-90% is sanctioned for the home loan for a house ranging from 25-75 Lakhs.

IndianMoney.com Research Team

The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.

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