Home Loan on a Salary of Rs.50,000: Details
If you are looking to secure a Home Loan, it is important to understand the eligibility criteria, as it can directly affect the amount you can borrow. Factors such as age and credit score are key in determining your loan eligibility. While your monthly income is a major factor, it is not the only consideration when it comes to Home Loan eligibility.
Eligibility Criteria for a Home Loan
When you apply for a Home Loan, there are certain conditions that you need to fulfil called the eligibility criteria. These requirements may differ among lending institutions, but it is imperative that you meet them to qualify for the loan. They commonly include as follows:
- Applicants can be salaried Indian citizens or NRIs or self-employed citizens (resident only) with credit scores above 750
- Salaried employees should be between 23 and 75 years** of age, while self-employed individuals must be between 25 to 70 years** old
- Individuals should be employed in the public or private sector, or a multinational firm holding at least three years of work experience
- Self-employed applicants should own a business venture with a vintage of over five years
- Applicants must have minimum earnings of Rs.25,000 per month
**The upper age limit is considered as age at the time of loan maturity. Additionally, the upper age limit for applicants is subject to change, depending on the property profile.
*Terms and conditions apply
Factors That Influence Home Loan Eligibility
Lenders approve Home Loans after considering the below-mentioned factors:
- Credit score
- Age of applicant
- Income and work experience
- Employer and job profile
- Repayment tenor
- Existing liabilities
- Legal and technical valuation of property
How to Apply for a Home Loan on a Salary of Rs.50,000
Individuals can apply for a housing loan with an income of Rs.50,000 in a few easy steps as given here:
- Visit the lender’s official website and fill out the house loan application form
- Enter your personal details such as your name, mobile number, and select the type of employment
- Select the loan type you wish to avail of and enter your net monthly income. Note: Click the info icon to learn more about the monthly income you need to enter
- Enter the PIN code and the required loan amount
- Click ‘Generate OTP’ and enter the received OTP in the respective field. After entering the OTP, click ‘Proceed'
- Populate all the financial details as requested and complete the form. Note: The fields that you need to fill may vary basis your employment type
- Click ‘Submit’ to submit the application form
How Can I Improve My Eligibility for a Home Loan on Rs.50,000 Salary?
Following are some tips to enhance your eligibility with timely repayments and good credit habits:
Apply with a Financial Co-Applicant
Applying for a joint Home Loan increases your chances of obtaining a higher loan amount. It also allows you to share the repayment amount whereby both applicants can derive double benefits from separate tax deductions.
Choose a Longer Tenor
Opting for a longer tenor reduces the payable EMIs ensuring more manageable EMIs. However, the interest component adds up raising the overall cost of credit.
Maintain a Good CIBIL Score
Repay your EMIs and credit card dues on time to increase your CIBIL score. Avoid delays or defaults. Try to maintain credit scores over 750 to secure favourable credit terms.
Repay Ongoing Loans
Since financial institutions appraise loan eligibility based on the debt-to-income ratio, prepaying existing loans will improve your credit score and may qualify you for the loan.
Include Additional Income Sources
Mentioning all sources of income, such as rental earnings or part-time wages will give you the appropriate debt-to-income ratio, enhancing your loan eligibility.
Also Read: How to Increase Home Loan Eligibility
*Terms and conditions apply.
