What are the Documents and Eligibility Required for Home Loans?

Most people buy a house through a home loan. But, how do you know if you can apply for a home loan? Will the bank accept your application? What documents do you need when applying for the best home loan? And how fast will your application be approved?

The eligibility criteria show whether you can apply for a home loan. If you are applying for a home loan to buy a house, you must check your eligibility first.

The eligibility criteria for a home loan include a few important factors, such as:

  • Employment status
  • Income
  • Age
  • Property value

Home loans are available for both salaried and self-employed people. However, the eligibility for both are different.

Eligibility For Home Loans

Before starting shopping for the best home loan, check out these eligibility requirements:

  1. Age

you must be at least 21 years old to apply for a home loan. It is the minimum age requirement for home loans in India. Some banks may have different age limits for salaried and self-employed people. So, it is better to check with your lender to know more about the minimum age requirements.

  1. Credit Score

The credit score is a 3-digit value (between 300 and 900) that shows your creditworthiness. You are given a credit score based on your credit history. For example, if you have paid your past debts and you pay your monthly bills in time, you will have a good credit score. The bank may approve your loan application easily if you have a good credit score. You can check your credit score at

  1. Employment Status

The bank checks your employment status to know your payment potential. If you work on a salary basis, you must have at least 3 years of experience. If you are self-employed, you must be running the business for at least 4 years.

  1. Property Value

The value of the property, its location, current condition, repair requirements, and resale value also affect your eligibility for a home loan. The lender might also check the age of the property before approving your loan application.

  1. Income

Salaried applicants must earn at least 1 lakh annually to be eligible for a home loan. For self-employed applicants, the minimum income for a home loan is Rs.1.5 lakhs.

Check the eligibility criteria before you apply for a home loan. It can vary from bank to bank.

Documents for a Home Loan

The home loan application documents are the papers you need to submit at the bank. These documents are sent with the application form.

Here are a few common documents you will need for a home loan:

  • ID proof
  • Address proof
  • Income proof
  • Property possession letter
  • No objection certificate
  • Passport-sized photos

For Salaried Applicants:

  • Salary slip (two months)
  • Bank statement (at least 6 months old)
  • Repayment bank statements
  • Previous year’s ITR (income tax returns) document

For Self-Employed

  • Previous year’s ITR
  • Financial statements
  • Credit card statement (6 months)
  • Bank statement (at least 6 months old)
  • Repayment bank statements
  • Form 16A with contract order
  • Applicant’s and co-applicant’s account
  • Business address proof

In addition to these documents, you may be asked to submit the GST return files. For further details about the home loan documents, contact your bank.

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