Home Loan
A home loan is a type of secured loan used to purchase property, with the property itself serving as collateral. These loans offer substantial financing with competitive interest rates and extended repayment periods. Borrowers repay the loan through Equated Monthly Installments (EMIs) and regain the property's title upon full repayment.
Eligibility
Securing a home loan is an important step toward owning your dream home. MDG Financial Services is here to simplify the process by helping you navigate the eligibility requirements for home loans from various banks and NBFCs in India. Here’s what most lenders typically look for:
-
Age: Applicants should typically be between 21 and 58 years old. However, age limits may differ slightly based on the lender.
-
Employment Type and Status: For salaried individuals, most lenders require that salaried applicants have stable employment with an organisation. You should have at least 1 year of total work experience, with minimum 6 months in your current job. For self-employed individuals, a steady business track record of at least 6 months is usually required. Consistent income from the business or profession is essential to demonstrate financial stability.
-
Income Requirements: Minimum income requirements generally vary based on your city of residence and the loan provider. Salaried employees need a minimum monthly income of ₹12,500, while self-employed individuals need to show consistent monthly revenue. A higher income may improve loan eligibility and increase the loan amount you qualify for.
-
Credit Score: A good credit score, 700 and above, is preferred by most lenders. This score shows your creditworthiness and can improve your chances of approval. If you have a lower score, don’t worry; we can help you explore options.
-
Loan-to-Value (LTV) Ratio: The loan amount you can borrow is often based on the property’s market value. Most lenders offer up to 80–90% of the property’s value, while you’ll need to contribute the remaining amount as a down payment.
-
Existing Financial Obligations: Lenders assess your debt-to-income ratio to determine if you can afford additional EMI payments. Lower existing debt increases your chances of securing a home loan at a better rate.
-
Property Documentation: You’ll need to provide valid documents for the property, including the title deed, approved building plan, and any outstanding dues. The lender may also ask for a valuation report of the property to assess its market value.
Documents Required
-
Proof of Identity (Aadhar Card, PAN Card, Voter ID Card)
-
Registered phone number
-
Registered e-mail address
-
Bank Statement (Past 6 months)
-
Income Proof (Past 3 months salary slips for salaried, past 2 years ITR for self-employed)
-
Property Documents (Deed, building plan etc.)