HDFC 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.

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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.

FAQs

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.