A senior citizen may not think of a home loan as an option at his or her age. Worse, some of them may even presume that they are not even eligible for it in the first place. There is an ounce of truth in it; lenders do look into the eligibility of the applicant quite thoroughly. Most senior citizens stand on weakened ground financially as they retire and live on reduced or even no income. But having said that, it is not that senior citizens are a complete pariah for home loan lenders. There are ways in which senior citizens can make sure that their home loan application is accepted. Here are some tips for senior citizens to get a home loan:


Attaching collateral with good yield increases a senior citizen’s chance of getting a housing loan approved. It could be mutual funds or shares which are yielding a higher return than the home loan interest rates.

Additional Read: Documents Required For Senior Citizens to Get A Home Loan

Interest Rate

Interest rates depend on the creditworthiness of the applicant. A senior citizen may be offered home loans by lenders at a higher rate of interest to set off their credit risk. However, as the applicant, you have to confirm the type of interest rate charged. Fixed home loan interest rates do not respond to the market while floating rates go up and down with market movements.

Loan to Value Ratio

A senior citizen can increase the chances of loan approval by lowering the loan to value ratio. Loan to value ratio is the ratio of the loan to the total value of the property. By increasing the down payment and reducing the loan amount, the EMI decreases while the probability of loan approval increases.


The probability of loan approval also increases if the senior citizen ropes in a co-applicant with a steady income. The bank is more comfortable with a housing finance arrangement if one of the applicants has a decent income. This is particularly beneficial for senior citizens whose income has dried up considerably.

Avoid Multiple Attempts

As a senior citizen, you should avoid applying frequently for home loans or any loans for that matter. Instead, you should check your home loan eligibility, which is based on your credit track record and is reflected in your credit score.

Getting a home loan can be a bit more difficult for senior citizens, but by following these tips, you can arrange a home loan far more easily. As a socially responsible corporate entity, Tata Capital is mindful of the financial needs of senior citizens and offers attractive home loan EMI options and minimal paperwork. So, you know who to reach out to for your home loan needs!

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