5 Points that can Increase Your Home Loan Eligibility

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A home loan is one of the finest available financial options to help you buy or build your dream home. 

But since a home loan is a long-term obligation, only eligible applicants are given approval for it. 

Hence, anyone applying for housing finance needs to meet the home loan eligibility criteria. 

But, if you want to increase your home loan eligibility and get a large amount at a lower rate, it is possible. All that you have to do is follow a few points. Continue reading!

  • Maintain a credit score of 750 or more

The first thing that a lender may check when you apply for a home loan is to check your CIBIL score. If you have maintained your credit score at 750 or more, it denotes your creditworthiness. Lenders may be sure of your repayment capacity. Therefore, a credit score of 750 or more is what can help you improve your home loan eligibility. To keep it well maintained, you should make timely repayments towards ongoing loans and debts. 

  • Pay off your existing debts

The higher the number of debts on your head; the lower the eligible housing loan amount will be. In many cases, your loan application may be rejected if the number of debts is more. Thus, before applying for a home loan, you should try to pay off your current debts. In turn, your home loan eligibility will increase. 

  • Go for a longer tenor 

If you opt for a longer home loan tenor, it means that you have to pay smaller EMIs. It also means that the chance of defaults on a loan is rare. Once you choose a longer tenor, your lender may approve your loan application for a significant amount. The only demerit of the extended tenor is paying higher home loan interest rates. 

  • Take joint home loans

If your lender is unable to approve your application for a considerable amount, you don’t need to fret. It is because you can add an earning family member with a robust CIBIL score as your co-applicant. Once you apply for a joint home loan, the overall eligibility will increase for a large amount. Taking joint home loans also help you avail of tax benefits of up to Rs.2 lakh. It is per borrower on principal and interest repayments. 

  • Add other sources of income 

While applying for a home loan, you don’t have to provide details of income only. If you have some additional income sources, you can easily add them. Once done, your housing loan eligibility will be enhanced. In turn, you will be able to buy a home of your choice without compromises. Many people have second and third income that they don’t disclose while applying for home loans. But to enhance your home loan eligibility, there is no worry. It is because lenders do consider your other income sources. 

What are standard home loan eligibility criteria?

Before availing of a home loan, you should land on the website of a lender and know home loan eligibility criteria. The documents required for home loans are also enlisted. Let’s take a quick look at standard eligibility norms and documents required: 

  • The age of the applicant should be between 23 and 62 years (salaried) and 25 and 70 (self-employed). 
  • He/she should be a resident citizen of India. 
  • Salaried individuals should have work experience of 3 years. Self-employed applicants need to have a business vintage of 5 years.
  • KYC documents. 
  • Income proof – latest Salary slips/Form 16 for salaried and TR documents/profit and loss statements for self-employed applicants. 
  • Recently clicked passport sized photographs. 
  • Proof of the existence of business for 5 years. 
  • Last 6 months’ bank account statements. 

The eligibility terms and documents required for home loans are standard. And they may vary from lenders to lenders. 

If you wish to know about an exact eligible housing loan amount, you don’t have to scratch your head. 

You can use the home loan eligibility calculator available on your lender’s website for free. 

This way, you can be sure of an amount that your lenders may approve if you apply. 

Applying for the same or a lower amount can help you get the loan approval without hassles.   


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Alfred Williams, a distinguished business writer, navigates the corporate landscape with finesse. His articles offer invaluable insights into the dynamic world of business. Alfred's expertise shines, providing readers with a trustworthy guide through the complexities of modern commerce.