The Indian government has adopted extensive measures post the Budget 2019 to nudge the growth of real estate sector and housing credit. It has furthered Rs.70,000 crore to the financial institutions in India. Additionally, it has also empowered the National Housing Bank to extend up to Rs.30,000 crore to several financial institutions. It is meant to enable these institutions to advance home loans at cheaper rates to borrowers.

Resultantly, financial experts expect home loans to grow at a rate of 17% - 19%. Regardless, to avail these loans, individuals must satisfy certain eligibility criteria for home loans.

Home Loan Eligibility Criteria


Different financial institutions define their yardsticks to approve a home loan differently. In any case, there are certain criteria which every housing finance company (HFC) follow. However, a few of these yardsticks differ in regards to salaried and self-employed individuals.

The common eligibility criteria for home loans is that the applicant should be an Indian resident.

The home loan eligibility criteria for salaried individuals are –

  • Must be within 23 – 62 years of age.
  • Must have a minimum work experience of 3 years.

The eligibility criteria for home loans for self-employed individuals are –

  • Must be within 25 – 70 years of age.
  • Must have a continuing business for a minimum of 5 years.

A home loan is a convenient form of monetary assistance to purchase or construct a home, as it allows individuals to avoid any significant financial strain.

Along with the other eligibility criteria for home loans, individuals should ensure they possess a credit score above 750. It ensures the applicant enjoys lower interest rates and efficient approval.