Home Loan Eligibility Criteria based on Employment - Kotak Bank

13 AUGUST, 2019

Buying a dream home and financial status are like two closely placed islands, which can be connected with the bridge of a home loan. All financial institutions have their own guidelines and criteria for providing a home loan. People who want to get a home loan are required to follow those guidelines, as well as fit into the bank’s eligibility criteria. Among other essential requirements like age and nationality, the most crucial criterion for getting a home loan is the applicant’s financial status.

Your financial status is entirely dependent on your current employment, which profoundly influences your housing loan eligibility. Stable employment is a sign of steady income, which reflects the likelihood of an individual to repay the loan. Therefore, all home loan lenders thoroughly check the employment status of applicants before approving the home loan.

Home Loan Eligibility Criteria for a salaried person:  

The home loan application process eases up for a salaried employee because of  below mentioned eligibility criteria-:

  • Minimum age 18 years and Maximum 60 years.
  • Minimum income should be 20,000/month in metro cities and in other cities 15,000/month.
  • Minimum Qualification: Graduate, when applicant is employed with a private limited or partnership firm. If applicant is employed with Public Limited Company or MNC then there is no such criteria.
  • Salaried employees should have minimum 2 years of work experience, and at least 6 months in the current company.

Home loan eligibility criteria for self-employed:

The eligibility of getting a home loan for Self-employed professionals or non-professionals works differently as compared with salaried individuals. Home loan lenders usually draft custom-made home loans plans that are suitable for self-employed applicants.  As the income of self-employed individuals is not fixed, loan lenders consider following documents primarily

  • Tax Returns
  • Profit & Loss Account
  • Balance Sheets
  • Bank statements

Home loan lenders provide home loans to every eligible individual, whether a salaried individual or a self-employed individual.

Nowadays, checking eligibility for a home loan has become very easy. You can check your eligibility for a home loan by using a home loan eligibility calculator before applying for one. Knowing eligibility helps you to plan your budget better.

Additional Read:  5 Factors that affect Home Loan Eligibility

 

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.

Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.