How HDFC Bank Calculate Housing Loan Eligibility

Posted by Bhavna Singhal on February 21st, 2020

It is indeed a good idea to take help from a credit instrument, that provides financial assistance for embarking the significant ventures of your life. HDFC Home Loan has emerged as one of the potential players for its customer-friendly and hassle-free loan processing with lucrative interest rates. So, before planning to apply for a housing loan with HDFC, it is necessary to give a thought about the parameters which are considered by the home loan lender for sanctioning a home loan. All the loan providing institutions, including HDFC, assess several factors of a loan applicant before determining the loan eligibility.

These are the underlying factors that HDFC Bank consider to calculate housing loan eligibility:

Current age and remaining working years

The home loan eligibility has enough to do with the current age of the loan applicant. Generally, all the housing loans come with a maximum capping of 30 years or the age of retirement. Hence, the young borrowers enjoy an extended tenure when compared with the older ones. A similar approach is observed in loan terms because the young individual has a longer span of work-life vis-a-vis the old applicant.

Credit history and credit scores

The past credit history should reflect a clean payment record which adds credence to the borrower home loan application. Along with that, a good credit score should be maintained by the borrower, which implies that chances of loan defaulting will be lesser, and the person is prudent in making repayments. 

Financial status

The lenders will definitely assess your financial status, and ensure that you regularly contribute for loan payment. The loan amount sanctioned depends upon the flow of your present and future income. The stability and quality of income earned by the borrower are also considered.

Other financial liabilities

The home loan lender will also evaluate the aspects of your financial liabilities, which include other forms of credit like personal loans, credit cards, etc. These are cross-checked to see whether you are able to take the swelling burden of the new loan. 

Traits of the desired property

The home loan eligibility is dependent upon the traits of the property as well. The housing lenders will check certain specifications regarding the location, size, age, etc., of the property. If it finds that the traits are not complying according to the desired property, it can cause the outright rejection of the home loan. 

Personal background

The personal background of the home loan borrower like his necessary details, educational qualifications and others are important before sanctioning a home loan. 

Guarantor to the existing loan

The loan eligibility enhances with the presence of a guarantor to the existing loans. The guarantor acts as an added security on behalf of the borrower to the lending house. The guarantor has to sign a deed of guarantee with the bank, where he agrees to make all the outstanding payments in the event of an applicant failing to clear his dues.  

Some of the ways to upgrade your home loan eligibility: 

• Add an earning member of your family like a spouse as a co-applicant.

• Disclose all your additional income and make a structured payment option with the lender.

• Have a steady source of income and make all the repayments timely. 

• Check your credit scores and take necessary actions to revise the score if any. 

Related:- Tax Benefits you can avail on Housing Loan

Now, there are many home loan eligibility calculators available online through which you can evaluate your ability, and proceed to apply for a home loan in HDFC Bank.