Home Loans are one of the most popular financial products in India. All major banks and financial institutions offer home loans to provide funding for buying or constructing houses and residential properties.
Home loans are witnessing a steady increase as a majority of people nowadays prefer to have their own house instead of renting one.
Home loan eligibility and the factors that affect the same
Before applying for a home loan, one must find out whether they meet the eligibility criteria for the same.
Though the eligibility criteria may differ from bank to bank, the loan approval and eligibility mainly depend on whether the applicant is salaried or not, the applicant's income, credit history, and credit score.
It will also depend on the borrower's repaying capacity.
Most banks and other financial institutions require the applicants to pay around 10-20% of the total property value as the down payment. The rest of the amount (80-90%) is financed by the bank. The total loan amount includes registration, transfer, and stamp duty charges.