Both self-employed individuals and salaried professionals can apply for Home loan or personal loan. Several applications and software are available online that act as a guide to check the eligibility before applying for a personal or home loan. Here are the most commonly used eligibility criteria for loan:
Age: The applicant should between 21-60 years to avail a loan. Some banks relax the lower age limit to 18 years and the upper age limit to 65 years.
Monthly Income: The higher your monthly income, the higher your chances if securing a home loan of a high amount.The minimummonthly income required for home loan ranges between Rs. 1,20000 p.a. to Rs. 180000 p.a.
Credit History: A person who is not among defaulter’s list and has a god credit score is considered a good candidate for securing a home loan.
Employer category: If you are working with a reputed organization, your chances of getting a home loan increase and the interest rate will be lower as compared to when you are working in some lesser known employer.
Professional/Business status: The eligibility criteria for loan also depend on one’s status. A self-employed person or a person with a reputed business stands a high chance of getting a home loan at lower interest rates.
Employment stability: Most banks require that the individual should be in business or should be working for a minimum of two years. In case of salaried individuals, he should be the current employer for a minimum period of one year.
Credit Score: Based on many factors, the banks compute your credit score to mark you as eligible or ineligible for any loan. This score given by Credit Bureau(India) Limited , also known as CIBIL, should fall between 350 to 900 for a person to be eligible for applying for a loan. Check this score before you apply for a loan.