You Should Be Aware of These Factors That Determine a Salaried Person’s Home Loan Eligibility!


With the rising real estate prices in today’s times, planning to buy a house becomes quite difficult without the help of a home loan. There are many lenders out there offering home loans, but it is important to first be aware of their housing loan eligibility criteria. Now, different lenders might have different criteria, so make sure to check these before applying for a home loan.

While a few eligibility criteria might differ when it comes to housing loans, there are many basic factors that lenders consider while reviewing loan applications. Here are 6 factors that determine a salaried individual’s home loan eligibility:

  • Income

Most lenders set a minimum income criterion based on the city that the applicant resides and works in. You need to be earning at least or more than the set criterion in order to get the loan application approved. If the income is high, the lender will be ready to provide a higher loan amount.

  • Dependents

The dependents of an applicant will also have an effect on their loan approval. Lenders review the total number of dependents of an applicant such as their parents, children, spouse, and so on before approving the loan application. A higher number of dependents would mean that the applicant does not have much of a disposable income, which in turn reduces their capacity to repay the home loan. This can directly affect home loan eligibility.

  • Type of employment

Working in an unconventional job that is risky and offers little job stability is a negative sign for a lender reviewing your loan application. If the company is making irregular salary payments, the lender will find an inconsistent income flow in financial records, which lowers your capacity of paying the EMIs on time. On the other hand, a steady job with a reputed organisation indicates good repayment capacity. This helps improve your housing loan eligibility.

  • Age

When you apply for a home loan at a younger age it is much likelier to get a loan approval as compared to applying for one when you are closer to retirement. This is because at a younger age you have a much longer tenure left to be earning an active income, which makes it easier for you to repay the home loan.

  • Property age

One eligibility criterion of getting a housing loan also involves the age of the property. If the property is an old one, the lender will have to conduct an investigation to review the possibility of structural collapse. This becomes a risk for the lender. Buying a property that is new and is located in a good neighbourhood can help improve the housing loan eligibility, as this is less of a risk for the lender.

It is also advisable to make use of a home loan eligibility calculator to understand the amount you can get from a lender. Most reputed lenders provide this tool on their websites for free as this helps borrowers know what they can expect.