When should you actually apply for home loan?

Different loans have different purposes to serve. For example, a personal loan is usually for small expenses such as marriage, travel, medical expenses, debt clearance, etc. However, a home loan is altogether a very unique product.

Home loans are for house purchase or property purchase etc. You can easily find lenders who offer a home loan. After a certain age or professional stability, people want to buy a house of their own. Some prefer taking it after they are done with major finance related expenses. And in both cases, a home loan becomes a good choice.

You must have heard the bigger the better phrase. But, in case of loans, it is the opposite that works. A younger person has higher eligibility than an older one. So, people who are young would find the process much smoother and closer to their expectation than the one who is in early 40s or late 40s or more than that.

So, when it is the right time to buy a house or apply for home loan? As I have said it above, try and buy a house or apply for a home loan in your initial career days which is around 25 years to 30 years. Since you are at your growing phase of career, you will find it easier to get a desired rate from the lender on your home loan. Lenders demand a good professional stability and income. Let us now see the eligibility required to apply for a home loan at top banks and NBFCs in India.

Eligibility Criteria for Home Loans at Top Banks and NBFCs

Below is the eligibility required to apply for a home loan at top 3 banks/NBFCs in India.

Bank of Baroda Home Loan Eligibility Criteria

• Resident Indians
• Non-Resident Indians (NRIs) holding Indian passport or Persons of Indian origin (PIOs) holding foreign passport or Overseas Citizens of India (OCI).

LIC Home Loan Eligibility

• Resident of India
• Non-Resident of India
• Pensioners
• Salaried employees
• Self-employed professionals
• Businessmen
• Pensioners below 70 years of age are classified as before-retirement individuals
• Pensioners of 70 years of age and above are classified as post-retirement individuals

Eligibility for Salaried NRI/PIO customers

For Purchase/Construction and Repairs/Renovation:

• You can get minimum loan amount of ₹1 lakh
• You can get the maximum loan up to 85% of the market value of the property or up to ₹75 lakhs
• Qualified professionals can choose loan tenure up to 20 years
• Others can get the loan for the tenure up to 30 years

For Plot Purchase:

• You can get minimum loan amount of ₹1 lakh
• You can get the maximum loan up to 75% of the market value of the property or up to ₹75 lakhs
• The loan can be taken for the maximum tenure of 15 years

For Takeover from other Banks:

• Salaried applicants can get the loan for the maximum tenure of 30 years
• Businessmen can get the loan for the maximum tenure of 20 years

SBI Home Loan Eligibility-

For Salaried:

• Your age must be between 18-70 years
• Your net annual income should be at least ₹1,20,000
• You can get loan amount up to ₹5 lakhs to ₹1 crore
• The minimum work experience required is 2 years

For Self-employed:

• Your age must be between 21-70 years
• Your net annual income should be at least ₹2,00,000
• You can get loan amount up to ₹5 lakhs to ₹2 crores
• The minimum work experience required is 3 years

As you can see the eligibility criteria, you would be able to understand the favorable age to apply for a home loan. The purpose is to get a lower rate of interest which you can get if you have high income and maximum repayment capacity which altogether is present at a young age.