To get an HDFC home loan, you must be eligible for it. Your HDFC home loan eligibility is evaluated on various parameters, including your repayment capacity, credit score and age. On the basis of these parameters, HDFC will decide the eligible loan amount and approve your home loan application. In this page, know a few general hdfc housing loan eligibility conditions, documents required, factors affecting and a few ways to improve your home loan eligibility.
|Particulars||HDFC Home Loan Eligibility Criteria|
|Resident Type||Indian Residents & Non-Resident Indians (NRIs)|
|Employment Type||Salaried & Self-employed|
|Minimum Age||21 years|
|Maximum Age||65 years|
|Other Criteria||Should have a regular source of income|
Should have a good credit score
HDFC Bank Home loan Eligibility for Co-Applicant
Applying for a home loan with an earning co-applicant increases your loan eligibility. Your income combined with the income of the co-applicant will increase your chances to get a higher loan amount and lower rate of interest (especially, if the co-applicant is a woman). Mentioned below is the eligibility criteria for a co-applicant:
- Must be a resident of India
- Should be salaried or self-employed
- All co-applicants need not be co-owners
- Co-applicants can be close family members (such as parents, siblings and spouse)
*Banks and other lending institutions allow certain relations to be eligible for applying as co-applicant. Ensure that you inquire about the co-applicants eligibility criteria with the HDFC Bank before filing the home loan application.
HDFC Housing Loan Documents
To ensure the applicant’s eligibility for home loans, it is vital to provide all the documents deemed necessary by the bank. Mentioned below are some documents that you need to provide to avail an HDFC Home Loan:
- Proof of Identity (Aadhaar Card, PAN Card, Passport, Voter ID, etc.)
- Proof of Residence (Aadhaar Card, Passport, Utility Bills of last 3 months, etc.)
- Proof of Income (Salary slips, bank statements,
- Documents related to property such as allotment letters, payment receipts, etc.
To view the entire list of documents an applicant needs to submit to avail an HDFC Home Loan, click here.
Factors Affecting HDFC Home Loan Eligibility
Approval of a home loan depends upon clearing the eligibility criteria, which further depends upon several factors. Mentioned below are some factors which affect home loan eligibility:
- Credit Score – A credit score reflects your credibility and how well you have handled your debts in the past. Lenders give out loans to those who can manage their debt well. A credit score close to 900 significantly increases your chances for loan approval.
- Age of the Applicant – A lender is concerned with the years of service of an applicant. This is simply to ensure that the applicant has a regular flow of income to repay the loan on time. The earlier an applicant applies for a home loan; the better are the chances of getting a loan approved. The HDFC Home Loan age limit is 21 to 65 years for both salaried and self-employed borrowers.
- Property Features – Before giving out a home loan, lenders also evaluate the value and features of the property in terms of its age, location and title—this help in deciding the eligible loan amount. Lenders reject home loan applications if the property is too old or is under some dispute.
- Employer and Profession – Lenders prefer to give out loans to those working in established organisations than to individuals working in lesser-known start-ups. So profession also impacts home loan eligibility. The home loan eligibility criteria for salaried are slightly more lenient than the eligibility criteria for self-employed. This is because salaried individuals have a more stable income than the self-employed.
- Job or Business Stability – Lenders avoid lending money to those who frequently change their jobs or do not have a stable business. Stable business or more years of continuous work experience reflects steady income and timely payment of loan EMIs.
- Existing Debts – If an applicant is already in debt, then there are high chances that s/he may have trouble repaying more loans. Having existing debts and irregular repayment history can negatively affect the home loan application approval.
Ways to Improve HDFC Home Loan Eligibility
Applicants can keep some ways in mind to ensure they pass the HDFC home loan eligibility:
- Improve Your Credit Score – Credit score reflects credit behaviour. A good credit score displays disciplined and responsible credit behaviour, which increases loan eligibility.
- Check Eligibility – It is wise to check your eligibility using the home loan eligibility calculator before applying for a home loan. This will give you an idea about any issues you may face and get time to work on your application.
- Increase Down Payment – Paying more towards home loan down payment will decrease Loan-to-Value (LTV) ratio, thus, improving the eligibility for the loan.
- Choose Longer Loan Tenure – Going for longer loan tenure reduces home loan instalments, thereby making sure the home loan EMIs are more affordable than the net income.
- Pay Off Outstanding Debts – Consider paying off outstanding debts, especially the costlier ones, to increase repayment capacity. The increase in loan repayment capacity will increase loan eligibility, helping take a higher amount loan.
- Add a Co-Applicant – If you think your income will not get you the desired loan amount, consider adding a co-applicant. Applying for a joint home loan will increase loan eligibility as lenders will also consider the co-applicants credit score and repayment capacity.
HDFC Home Loan Eligibility FAQs
Q. What is home loan eligibility?
A. Every applicant that is applying for an HDFC Home Loan is required to qualify for the same. The bank sets this qualification criterion to ensure that the applicant is creditworthy and can repay the home loan without default. Failing to meet the eligibility criteria can lead to disapproval of a home loan.
Q. How is home loan eligibility calculated?
Home loan eligibility is calculated using a mathematical formula that considers features such as loan tenure, existing EMI obligations, other monthly incomes etc. You can check your eligibility using online home loan eligibility calculators.
Q. How much home loan can I get on a Rs 20,000 salary in HDFC?
A. Apart from your salary, a home loan depends upon various factors such as your credit score, age, location, existing debts and more. If your salary is Rs. 20,000 per month, use an online eligibility calculator to determine your chances of home loan approval.
Q. What is the maximum home loan amount I am eligible for?
A. HDFC sanctions home loans up to 90% of the property cost. The bank will determine your home loan amount eligibility.
Q. What is the minimum salary for a home loan in HDFC bank?
A. The minimum salary for a home loan in HDFC bank is Rs. 10,000 per month.
Q. What is the minimum business income for a home loan eligibility in HDFC bank?
A. The minimum business income for a home loan in HDFC bank is Rs. 2 lakh per annum.
Q. How does HDFC decide my home loan eligibility?
A. HDFC home loan eligibility is primarily determined by your income, repayment capacity and other factors such as age, credit score, location, etc. The bank will consider all these factors and determine your eligibility for the same.