Have you applied to a bank or an NBFC for a Home Loan? They will consider some factors. Only then will they sanction it. These factors include your credit score as well as a check on your salary. Of course, you know this already. But there is something else you might not know that affects your Home Loan Eligibility. That is the status and profile of the company you work for.

Factors that Affect Your Home Loan Eligibility

A Home Loan is a secured loan. This means that the bank or NBFC will demand a security from the borrower. This is the Home Loan security. It could be a mortgage of the house, for example. Some factors affect your eligibility. They also affect the maximum Home Loan amount sanctioned to you. These are:

  • Your Age: Banks and NBFCs prefer giving loans to younger applicants. These applicants would be retiring at least after 10–15 years. Your age decides your eligibility. So does the term of your Home Loan.
  • Your Monthly Income: Your monthly income decides your maximum loan amount. The EMI will not be more than 40% to 50% of your monthly income. You need to show some Home Loan documents. These include salary slips for the last three months.
  • Any Existing Debt: Do you have existing debts? These reduce your repayment capacity. So you get less amount of loan. The amount will depend on how much debt you already have.
  • Your Educational Qualifications: Is your level of education high? Then you are likely to have a high-earning career. So, banks and NBFCs look at your educational qualifications when deciding on your loan.
  • Number of Dependents: Some of your income will go towards the dependents in your life. So, banks and NBFCs decide your loan eligibility based on how many dependents you have.
  • Your Job Stability: Banks and NBFCs prefer to give loans to people with stable jobs.
  • Your Credit Score: Your CIBIL score is assessed. This shows your credit history and repayment habits.
  • Your Employer: Does your employer have a corporate structure? Is your employer in the banking or finance fields? Is your employer a private limited company? Then your chance of getting a loan is higher.

How Does Your Employer Profile Affect Your Home Loan Eligibility?

What are the factors deciding loan eligibility? Your employer profile is a major factor. This is easy to understand. After all, your income depends on your employer. Banks and NBFCs prefer giving loans to people employed by established companies. These companies have set corporate structures. They also prefer banking and financial institutions. Reputed private limited companies also make the cut.

Categories of Companies

Banks and NBFCs have two categories for companies: listed and unlisted. There are further categories as well. These depend on risk profiles. Further categories could be Super A, Cat A, Cat B, Cat C, Cat D, and so on. They could also be Diamond, Platinum, Gold, Silver, and so on. Companies like Accenture, Infosys, TCS, Capgemini, and Deloitte are in the Super A or Cat A categories.

How Does Working in a Super A Company Affect Your Home Loan Eligibility?

Home Loans are long-term loans. They have terms of 10 to 30 years. The borrower would like to get a good loan amount with a low interest rate. Do you work in a Super A or Cat A listed company? Then your chances increase.

Do you work in a preferred or top-listed company? Then your Home Loan eligibility can have the following features:

  • You can get a Home Loan at a special rate
  • You can get a higher Home Loan amount
  • You can get a Home Loan for a longer term
  • You may not have to pay processing fees and other charges

These benefits are available to employees working in top-listed companies. They do not have to get very high salaries. But are you a loan applicant working in an unlisted company? Or do you work in a company that is low in the list of categories? Then you may have to pay a higher interest rate. You may also get a lower loan amount.

What Can You Do if You Are Not Employed by a Top-Listed Company?

Suppose you do not work with a top-listed company. You still have hope. Your credit history and relationship with your bank will affect your Home Loan eligibility. You could get a lower interest rate. You could also approach NBFCs for your Home Loan. Their terms and conditions are less strict than banks.

The Bottomline

Planning to apply for a Home Loan? Find out if your company is top-listed by banks and NBFCs. This will affect your Home Loan eligibility. Remember you can always approach NBFCs like Bajaj Finserv. They are more likely to sanction a Home Loan. The loan will depend on your repayment capacity and on your Home Loan security.

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