October 6, 2022

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4 Key Factors To Measure Your Home Loan Eligibility Before Going To Avail Home Loan

Having a home of your own can change your approach to life. After all, not everybody can purchase the home they dream about, as it involves a lot of money.

With PNB Housing home loans, money will be the last thing to stop you from fulfilling your dreams. A PNB Housing Home loan can give you instant cash minus headache. Its easy eligibility criteria, simple documentation, long loan term, low rates of interest, and uncomplicated application process can ensure money when you need it the most.

The eligibility criteria of a home loan are straightforward, and you can use the home loan eligibility calculator to get an estimate about the loan amount. But, loan approvals depend on a few factors over and above the basic eligibility criteria.

What is the Eligibility Criteria of PNB Housing Home Loan?

The following three points are the primary requirements that you need to fulfil to get a home loan, like the one from PNB Housing.

  • Your age must be above 21 and below 70
  • You must be an Indian resident
  • Your monthly income should be stable and beyond the threshold set by the lender.

Other than the three primary requirements, the eligibility also depends on some other factors.

The 4 Key Factors That Determine Your Eligibility For a Home Loan

1. Credit Score

The credit score is a three-digit number which starts from 300 and goes up to 900. It represents your creditworthiness. Lenders like PNB Housing look at the credit score of a borrower to determine their creditworthiness while calculating the home loan interest rates. Usually, you need to have a credit score of 750 and above to avail the lowest interest rates, which start from 7.50%. To increase your credit score, you need to pay your loan or card dues on time, refrain from taking too many loans, and keep your debt level below 30% of your net monthly income.

2. Net Monthly Income

Your net monthly income is the money that remains in your hand after taking care of all liabilities. Your liabilities may include loan dues, credit card bills, fixed expenses, and emergency expenses. While many lenders do not allow you to avail a loan amount of more than 40% of your net income, with PNB Housing home loans, you can go as high as 50%. It is wise to use the home loan eligibility calculator to get an idea. 

3. Employment Status

While almost anyone, irrespective of their credit score, can apply for a PNB Housing home loan, the nature of their income should be reliable. As a fact, a person with a stable government or private job or in a profitable business may expect a higher loan amount than someone with less experience. Additionally, borrowers with a stable income also get flexible norms and lower interest rates.

4. The Loan to Value Ratio

Generally, lenders like PNB Housing, approve a home loan amount of up to 90% of your property’s market value. However, the loan amount, or the loan-to-value ratio, depends on the location of the property and the amount you intend to take. If your property is at a prime location, lenders may not mind approving a higher amount. As a rule, you have to pay 10% of your loan amount as a downpayment. However, you can also pay more to reduce your outstanding liability and/or loan term. It is best to use a home loan eligibility calculator to find out the difference between long term and short term home loans.

Also check: Documents required for home loan


PNB Housing home loan can help you fulfil your dream of owning a house, sans tension. However, as an informed borrower, you should try to take a look at the terms before signing the loan application form.