Home loan: Eligibility and Documents Required

For most young working professionals, owning a home is one of the significant milestones in the journey towards success. 

At PNB Housing Finance Ltd, we do our best to help you draw you closer to your dream home.

Factors that Determine your Home Loan Eligibility 

Loan eligibility across the globe depends upon the perceived ability of an individual to pay back. Therefore, several factors play a significant role in determining one’s eligibility for Home Loans. 

You can check home loan eligibility with several such calculators available online.

1. Age

This is a determinant of the tenure of your loan. It also has a bearing on your EMI. The longer the term of the loan, the lower the EMI, and vice versa. Your age should not exceed 70 years at the time of loan maturity.

2. The Nature and Size of Income

The EMI commitment you are capable of incurring depends on your monthly income. In other words, your monthly earnings determine the amount of surplus left to repay your loan via EMI after disposing of other financial commitments.

3. Previous Loans

Previously taken loans to have a bearing on your current loan eligibility as the EMI of your previous loan is deducted first from your monthly income post that the EMI of the new loan is determined. Therefore, it reduces the surplus left for the repayment of the new loan and its EMI.

4. Credit Report

Your ability to repay is judged based on your credit report. It then becomes a crucial factor in the approval or rejection of your loan.

5. Regulatory Guidelines

NHB (National Housing Bank) has laid down certain restrictions on the max loan amount as a percentage of the house cost. This limit varies from one property cost to another. In other words, lower-cost homes are eligible for a higher limit and vice versa.

However, there are ways to increase your Home Loan eligibility. The two standard methods are:

• Joint Application

Applying jointly by including either your earning spouse or a co-applicant can increase your Home Loan eligibility. It results in an increase in your income which in turn determines the EMI.

•Closing Other Loans

 Closing other EMIs employing pre-payment can result in a more significant surplus. Thereby, helps in pushing up your Home Loan eligibility.

Documents Required for Home Loan

Here is a list of the documents required for a home loan based on the nature of your employment.

Salaried employees

  • Duly filled in Application Form with Photograph.
  • Age Proof (PAN, Passport or any other Certificate from Statutory Authority)
  • Residential Proof (Passport, Ration Card, Driving License or any other Certificate from Statutory Authority)
  • Educational Qualification (Latest Degree)
  • Latest Salary slip for 3 Months
  • Form 16 for the last 2 Years
  • Bank Statements for last 6 Months (Salary Account)
  • Processing Fee Cheque in favor of ‘PNB HOUSING FINANCE LTD.
  • Photocopy of title documents of the Property, Approved Plan.

Self-employed or Professionals

  • Duly filled in Application Form with Photograph.
  • Age Proof (PAN, Passport or any other Certificate from Statutory Authority)
  • Residential Proof (Passport, Ration Card, Driving License or any other Certificate from Statutory Authority)
  • Educational Qualification (Latest Degree)
  • Certificate and Proof of business existence along with Business Profile.
  • Last three years’ Income Tax Returns (Self and Business) with Profit and Loss Account and Balance Sheets duly certified/ audited by a Chartered Accountant 
  • Bank Statements (Self and Business) of the last 12 Months
  • Processing Fee Cheque in favor of- PNB HOUSING FINANCE LTD.
  • Photocopy of title documents of the Property, Approved Plan.

At PNB Housing Finance Ltd., we provide loans for purchasing, construction, and extension of dwelling units. We offer customized home loan solutions with the best-in-class services, comprehensive domain knowledge, and simplified loan procedures with ease of application. This is due to its branches spread across the country.

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