A salary of 50,000 rupees is very steady, and it’s natural to wonder whether the best option going forward is to either rent a house or go all in and buy one. The answer to that question depends on your home loan eligibility, because lenders use this to check your repayment capabilities. Knowing about this beforehand can help you avoid rejection, improve your chances of approval, and give you clarity on how much you can actually borrow.
What is Home Loan Eligibility?
Home loan eligibility is basically the lender’s way of figuring out your repayment ability. It’s not the same as approval; eligibility determines if and how much you can borrow, while approval is granted only after all the documents have been checked and verified.
Factors like your credit score, income, existing EMIs, and employment type play a huge role in deciding whether you’re eligible or not. You can use a home loan eligibility calculator , like the one available on the PNB Housing Finance, to get an idea of your eligibility.
Key Home Loan Qualifications You Must Meet
Here are some common home loan eligibility criteria you need to meet:
- Age: The applicant must be between the ages of 21-65.
- Income Stability: Proof of stable income reassures the bank of your repayment ability.
- Credit Score: A credit score of above 700 is considered good.
- Debt-to-Income Ratio: Your total debt repayment should be below 40% to show that the EMIs will be manageable.
- Property Standards: The property needs to have clear ownership and should be on the lenders list of properties that they have vetted and cleared.
Standard Home Loan Criteria Followed by Banks/NBFCs
- Banks and housing finance companies typically verify your employment status first.
- Salaried employees are considered low risk because they have a stable income.
- Self-employed workers are considered high risk due to discrepancies in their income.
- Lenders also use the loan-to-value ratio; generally, they fund 75%-90% of the project’s cost.
- By adding a co-applicant, you can increase the chances of eligibility by combining your incomes.
Home Loan Eligibility for a Salaried Person
- Salary slips from the last 3-6 months
- Employment continuity proof, showing that you’ve been at this company for 2-3 years.
- Bank statements that show your salary getting credited.
Home Loan Eligibility for a Self-Employed Person
- Proof of business continuity, showing that your business has been up and running for the last 3 years minimum.
- Income proof via ITRs, balance sheets, GST Returns
- CA-certified accounts verifying income streams.
- Due to their income being varied, lenders put stricter terms on them.
Documents Required for Home Loan
- Identity Proofs (Aadhar card, PAN Card, Passport)
- Income Proofs (Salary Slips, Bank statements)
- Address Proofs (Utility Bills, rental agreement)
- Property Papers (Title Deed, Valuation)
- For Self-Employed: GST Returns, CA audited financials, balance sheets.
How to Improve Your Home Loan Eligibility
- Pay off existing loans to help reduce the debt burden.
- Add a co-applicant so that you can increase your income by combining them.
- Maintain a good credit score, above 700, by paying your bills on time.
- Declare additional income, such as rental income or part-time earnings.
Renting may seem like the easier option, but owning a home gives you stability and long-term growth. For someone who’s earning 50,000 rupees, you can buy a home by using a home loan from reputed institutions like PNB Housing Finance. By understanding the home loan eligibility criteria you can give yourself an advantage and get affordable funding.
