HDFC Home Loan Eligibility

HDFC home loan eligibility criteria differ from one loan scheme to another. To qualify for HDFC home, below are the detailed eligibility criteria.

• Resident Type – Both Indian Residents and NRIs can apply for HDFC home loan
• Age – HDFC home loan has a minimum and maximum age criteria for both salaried and self-employed loan applicants. The minimum age of the applicant to apply for HDFC home loan should be above 21 years at the beginning of the loan. And the maximum age of the applicant to apply for HDFC home loan should not be more than 65 years when the loan matures
• Credit Score – Your credit score reflects your past credit behaviour; therefore, the higher the credit score, the better it is. Before applying for HDFC home loan, ensure that the credit report is clear of any errors and the credit score is above average
• Income – Both salaried and self-employed (owning a business or practising as a professional) individuals are eligible to apply for HDFC home loan. But ensure that your income is regular and sufficient as per the income criteria set by the bank.

Your eligibility for HDFC home loan should be supported by documents as required by the lending institution. Provide complete and correct documents at the time of submitting the loan application. Check the list of HDFC home loan documents below:

1. KYC Documents: ID & Address Proof (Any One Required)
   • Aadhaar Card
   • PAN Card (Mandatory, if income is considered for loan eligibility calculation)
   • Valid Passport
   • Voter ID Card
   • Driving License
   • Utility Bill: Electricity, Telephone, Postpaid mobile, Water Bill, etc.
   • Ration Card
   • Letter from your current employer
   • Bank statement /a copy of passbook reflecting your address
   • Valid Rent Agreement
   • Sale Deed
2. Income Documents
   • For Salaried Individuals
     • Salary slips for the last 2 months or salary certificate (*If variable components like overtime and incentives are reflected, then salary slips for the past 6 months are required.)
     • Cash Salary – Income details on Company Letterhead
     • Copy of bank statements for the past 3 months (salary account)
   • For Self Employed Professionals
     • Certificate of qualification for professionals: CA, doctors or architects
     • Copy of last two years’ income tax returns, along with computation of income
     • Copy of last two years’ P/L account with all schedules and audited balance sheet, wherever applicable
     • VAT or Service Tax returns or TDS Certificate
     • Bank statement for the last 6 months (Savings account, current account and O/D account)
   • For Self Employed Non-Professionals
     • Copy of your last two years’ income tax returns, along with computation of income
     • Copy of last two years’ P/L account with all schedules and audited balance sheet, wherever applicable
     • VAT or Service Tax returns or TDS Certificate
     • Bank statement for the last 6 months (Savings account, current account or an O/D account)
3. Property Documents
   • Allotment letter from builder
   • Agreement of Sale
   • Registration and stamp duty receipt
   • Index- ii
   • No Objection Certificate (NOC) from the builder
   • Own Contribution Receipt (OCR)
   • All builder linked documents (Applicable for cases which are not approved or previously not funded by HDFC)
   • Development Agreement
   • Tripartite Agreement
   • Partnership Deed
   • Sale Deed
   • Title Search Report
   • NA order

Note: Original documents are required for verification purpose only

• Credit Score – Credit score shows how well you have handled your debt in the past. Lenders give out loans to those who can handle their debt well. Credit score increases on responsible handling of the debts. This increases home loan eligibility and chances for loan approval.
• Age of the Applicant – Your remaining service years are determined by your age. If you are 50 years old, you will most likely not get a home loan of 20 years as during the loan period you will retire and therefore, will not be able to repay the loan.
• Repayment Capacity – Loan repayment capacity is judged by Fixed Obligation to Income Ratio (FOIR). Ideally, this ratio should not cross the 40%-50% mark. If it is more than the eligible mark, consider paying off the outstanding debt or increase the income by adding a co-applicant.
• 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 application 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 stable income and timely payment of loan EMIs.

• Improve credit score – Credit score reflects credit behaviour. A good credit score displays disciplined and responsible credit behaviour, which increases loan eligibility.
• 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 reduce home loan instalments, thereby, making sure the home loan EMIs are more affordable as per the net income.
• Pay off outstanding debts – Consider paying off outstanding debts, especially the costlier ones to increase repayment capacity. The increase in the loan repayment capacity will increase loan eligibility, helping take a loan of a higher amount.
• 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 credit score and repayment capacity of the co-applicant.