Home loan is a long term commitment wherein the borrower is concerned about the interest rate as it decides the EMI that he/she will have to pay. To apply for a home loan, the applicant must match the eligibility criteria set by the bank or NBFC.

best home loan

Once you are eligible for a housing loan, there are certain factors that decide how much loan amount and what will be the rate of interest applicable you will get. The better the overall profile of the applicant is, the higher is the chance to get a lower rate and a higher loan amount. Below are the home loan interest rates offered by top banks in India where you can apply.

Home Loan Interest Rates in Top 5 Banks

  1. State Bank of India- 8.35% p.a. onwards
  2. ICICI Bank- 8.35% p.a. onwards
  3. Axis Bank- 8.35% p.a. onwards
  4. HDFC Bank- 8.35% p.a. onwards
  5. Bank of Baroda- 8.35% p.a. onwards

Home Loan Eligibility Criteria

The eligibility criterion is subject to change from one lender to another and from one applicant to another. The general criteria for a home loan is as follows:

For Salaried:

  • The age of the applicant must be between 21-60 years
  • The minimum annual income of the applicant should be ₹1,20,000
  • The applicant must have the work experience of at least 2 years

For Self-employed:

  • The age of the applicant must be between 21-65 years
  • The minimum annual income of the applicant should be ₹1,50,000
  • The applicant must have the business stability of at least 3 years

Factors affecting home loan eligibility  

To get a home loan you need to fulfill the home loan eligibility criteria asked by the lender. It is very important to know the details of the eligibility criteria because these are the parameters used by the lender to know if you will be able to repay the loan amount and EMI or not. in order to get sanction of a home loan amount, the eligibility criteria required are –

Age- The minimum age required is 21 years at the time of application and the maximum age required is 58 years at the time of loan maturity. It is one of the important criteria as your age reveals the number of years one has to repay the loan. For example- if you are 25 years old then ideally you have 20-25 years for repayment while the same reduces to 10 years if you are in your 50’s. The less your age the chances of the approval of your application is more.

Nature of Job– The applicant needs to be a salaried individual or self- employed/ professional.

Monthly Income– The monthly income of the applicant is necessary for the lender to know how much you earn to determine the loan amount that can be granted and your capacity to pay the monthly installments.

Job Stability– The frequency of your job shift reflects on your application and chances of availing a home loan depends on it. It is highly important that you have a stable career and minimum work experience with the current organization is at least 1 year for the salaried individual. And for the self- employed, minimum of 3 years in the current business/ profession is important.

Personal Profile of the applicant– The personal details of the person like the number of dependents, the number of bank accounts you hold etc is also necessary.

CIBIL Score– The credit history of the applicant is very important factor to avail a home loan. The CIBIL Score of the applicant should be 700 and above otherwise the chances of approval of application decreases. A bad credit score or no credit history can also decrease your chances to get a home loan.

Type of Property– The attributes of the property is also very important to get a home loan.  The overall cost of the property, disputes related to it (if any), the carpet area of the property, etc. are important things that a lender look into before sanctioning the loan amount

Thus, with the details of all banks home loan interest rates and the general eligibility, you must have got the idea of how and where can you apply.

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