Financial institutions set a few housing loan eligibility criteria to avoid financial risk while lending. Applicants are only approved after they fulfil all these conditions.

Some other ways to ensure loan approval-

  • Good CIBIL score
One of the most important criteria is to maintain a CIBIL score of around 750. Lenders avoid providing loans to individuals with a low credit score as such borrowers don’t have a significant credit history to prove their creditworthiness.

  • Low FOIR
The amount of monthly financial obligations also affects the eligibility to secure a home loan. Lenders assess the Fixed Obligation to Income Ratio of borrowers before approving the loan. Applicants need to keep the FOIR lower than 50%.

  • Higher income
Individuals with higher income can secure quick approval of a home loan. Applicants should disclose all sources of incomes such as regular returns on investments, rentals, business earnings, etc. to prove a stable financial position.

  • Occupational experience
Salaried applicants need to have a work experience of at least 3 years while self-employed individuals must head a business that has a minimum vintage of 5 years to qualify the housing loan eligibility criteria.


Apart from the above, applicants also need to provide the following documents –
  • KYC documents – Aadhaar, PAN, Voter ID, Driving License, Passport, etc.
  • Latest salary slips.
  • Financial statements of at least the last 6 months (for self-employed applicants).
  • Income tax returns.

Applicants must be aware of these eligibility criteria before applying to reduce the chances of rejection of their home loan application.