Credsir
Home Loans
Eligibility
November 2025

Home Loan Eligibility Criteria in India 2025: Complete Guide

Amit Verma
10 min read

Securing a home loan in India requires meeting specific eligibility criteria set by banks and housing finance companies. As of November 2025, lenders have streamlined their processes while maintaining stringent standards to ensure responsible lending. This comprehensive guide covers all essential eligibility parameters, from income requirements to property valuation, helping you understand what it takes to get your home loan approved.

Primary Eligibility Criteria for Home Loans

1. Age Requirements

  • Minimum Age: 21 years (some lenders accept 18 years with co-applicant)
  • Maximum Age at Maturity: 65-70 years for salaried, 70-75 years for self-employed
  • Younger applicants get longer tenure options (up to 30 years)
  • Age affects loan tenure and EMI calculations significantly

2. Income Criteria

  • Salaried (Metro Cities): Minimum ₹30,000-₹40,000 per month
  • Salaried (Tier 2/3 Cities): Minimum ₹20,000-₹25,000 per month
  • Self-Employed: Minimum annual income of ₹5-8 lakhs
  • Professionals: Minimum ₹6-10 lakhs annual income with established practice
  • Higher income increases loan eligibility (typically 60x monthly income for salaried)

3. Credit Score Requirements

  • Excellent (750+): Best interest rates (8.40%-8.75% p.a.), up to 90% LTV, minimal documentation
  • Good (700-749): Competitive rates (8.75%-9.25% p.a.), up to 80-85% LTV
  • Fair (650-699): Higher rates (9.25%-10% p.a.), lower LTV (70-75%), additional scrutiny
  • Below 650: Difficult approval, very high rates, or outright rejection

4. Employment and Business Stability

  • Salaried: Minimum 2-3 years total work experience
  • Current Organization: At least 1 year in current job
  • Self-Employed: Business operational for minimum 3-5 years with profitability
  • Professionals: Practice established for at least 3 years with consistent income

5. Loan-to-Value (LTV) Ratio

  • Property Value up to ₹30 lakhs: Up to 90% LTV
  • Property Value ₹30-75 lakhs: Up to 80-85% LTV
  • Property Value above ₹75 lakhs: Up to 75-80% LTV
  • Higher down payment (lower LTV) improves approval chances and reduces interest rates

6. Fixed Obligation to Income Ratio (FOIR)

  • Ideal FOIR: 40-50% of gross monthly income
  • Maximum FOIR: Up to 60-65% for high-income individuals
  • Includes all existing EMIs, credit card dues, and other financial obligations
  • Lower FOIR significantly increases loan eligibility amount
Property Eligibility Criteria

The property you're purchasing must also meet specific criteria for loan approval:

Approved Properties

  • • Residential apartments in RERA-approved projects
  • • Independent houses with clear title
  • • Plots in approved layouts (for construction loans)
  • • Resale properties with proper documentation
  • • Under-construction properties from reputed builders

Property Valuation

  • • Bank-approved valuers conduct property assessment
  • • Loan amount based on lower of: agreement value or valuation
  • • Location, age, and condition affect valuation
  • • Properties older than 20-30 years may face restrictions

Legal Requirements

  • • Clear and marketable title
  • • Approved building plans and completion certificates
  • • No legal disputes or encumbrances
  • • Proper chain of ownership documents
  • • Compliance with local municipal regulations
Required Documentation

Personal Documents

  • Identity Proof (Aadhaar, PAN, Passport)
  • Address Proof (Aadhaar, Utility Bills, Rent Agreement)
  • Age Proof (Birth Certificate, Passport, PAN)
  • Passport size photographs

Income Documents (Salaried)

  • Last 6 months salary slips
  • Last 12 months bank statements
  • Form 16 for last 2-3 years
  • Employment certificate or appointment letter

Income Documents (Self-Employed)

  • Last 3 years IT Returns with computation
  • Last 12 months bank statements (business & personal)
  • Audited financials (Balance Sheet, P&L, Cash Flow)
  • Business registration and GST documents

Property Documents

  • Sale agreement or allotment letter
  • Property title documents and chain
  • Approved building plans and NOC
  • Encumbrance certificate
Tips to Maximize Your Home Loan Eligibility
  • Add Co-Applicant: Include spouse or parents to combine incomes and increase eligibility by 50-100%
  • Opt for Longer Tenure: Choose 20-30 year tenure to reduce EMI and improve FOIR ratio
  • Close Existing Loans: Prepay or close personal loans and credit cards to reduce obligations
  • Improve Credit Score: Maintain 750+ score by paying bills on time and keeping credit utilization low
  • Show Additional Income: Include rental income, bonuses, and investment returns with documentation
  • Increase Down Payment: Higher down payment (25-30%) improves approval chances and reduces interest
  • Choose Approved Properties: Select RERA-approved projects from reputed builders for faster approval

Calculate Your Home Loan Eligibility

Use our advanced eligibility calculator to check how much home loan you can get and compare offers from top banks.

View Home Loan OffersCheck Credit Score
AV

Amit Verma

Home Loan Expert with 12+ years of experience in housing finance. Amit specializes in helping first-time homebuyers understand eligibility criteria and secure the best home loan deals.

View Profile