Home Loan Top up

Q: What are the eligibility criteria to get a home loan?

To be eligible to avail a home loan , you should meet the following criteria – Age Limit – 24 to 65 years Salaried Individuals – Minimum salary of Rs. 30,000 and at least two years of work experience Self-Employed Individuals – At least three years of work experience in the current field

What is a Home Loan Top-Up?

Home loan top-up is a facility provided by lenders under which a borrower can take an additional sum of money as loan over and above his existing home loan. Moreover, home loan top-ups are a safety net during moments of emergencies. For example – If the property builder overshoots the initial budget, prices may rise and to meet the price gap, a home loan top-up is the easiest and the most seamless option.

Why Should You Go for a Top-Up Home Loan?

The following are the benefits of opting for a home loan top up –

Lower Interest Rates – Relatively lower interest rates are the primary reason for choosing home loan top-ups
Longer Tenure – Home loan top-ups also come with longer tenure options which helps in lowering monthly EMIs and also results in higher loan eligibility
Tax Benefits – For purposes of home repair or construction, even for the education of your children, you can avail tax benefits on your home loan top-up
Debt Consolidation – Another major benefit of top-up loan is that it can be used to close existing unsecured loans that may have high interest rates
Faster Loan Processing – Since your existing lender has already built a relationship with you, top-up loan will take minimal processing time

Who Can Get a Top-Up Home Loan?

To get a top-up home loan, you must meet the following eligibility criteria –

You must be an existing customer. Meaning, you must have already taken a home loan from Tata Capital
The payment history of your existing home loan should be free from defaults
You should have a good CIBIL or credit score, preferably over 750

What are the Documents Required for a Top-Up Home Loan?

The standard documents required for a top-up home loan are as follows -

Age Proof documents – valid Passport/Driving License/PAN Card/Birth Certificate/ Life Insurance Policy/School Leaving Certificate
Identity Proof documents – Voter ID/Passport/Driving License/Aadhar Card/PAN Card
Address Proof documents – Utility Bills/Bank Statements/Property Registration Documents/Property Tax Receipt/Voter ID Card
Business Proof documents – Registration Certificate for Commencement of Business/copy of the last two years’ Income Tax Returns
Income Proof documents – Last six months’ operative current account statement/copy of the last three years’ P/L Projection Statement/Bank statements for the last six months of CC, OD facilities (if taken)
Existing Loan details – to be provided via bank statements
Processing Fee Cheque – to be issued from your business account
KYC Documents
Disbursal Request Letter
Latest coloured photograph
Home loan application form
Photocopy of PAN Card

Note – The documents required may differ from case to case on the basis of the customer profile. For pre-approved top-up loans, document requirements will be minimal.

When Should You Opt for a Top-Up Home Loan?

Applying for a top-up loan is easy. Simply follow the following steps –

Step 1 – Choose your mode of application – online or via a phone call
Step 2 – Fill in your personal, employment, and financial details in the application form
Step 3 – Enter in the top-up loan amount
Step 4 – Enter in the details of your existing home loan
Step 5 – Submit the necessary documents and fees involved

And that is all it takes to apply for a home loan top-up!

Home Loan Eligibility

You have to meet some basic conditions to get a home loan. Our easy-to-use home loan eligibility calculator will let you determine your housing loan eligibility in a quick and seamless manner. You can use our Home Loan Eligibility Calculator to find out your eligibility. To be eligible for Tata Capital Home Loan, you have to meet a few basic home loan eligibility criteria.

You should be between the ages of 24 to 65 (at the time of completion of your home loan)
You should be a salaried individual or a self-employed professional
Your CIBIL score should be about 750 or above

Home loan eligibility criteria will further differ depending on whether you are a salaried individual or a self-employed individual

Home Loan Eligibility for Salaried Individuals

For salaried individuals, home loan eligibility criteria is as follows –

Monthly salary must be a minimum of Rs. 30,000
A minimum of two years of work experience is a must

Documents required for Home Loan

Age Proof

A Copy of your Passport, Driving License, Life Insurance Policy, Birth Certificate, PAN Card & School Leaving Certificate

Photo Identity Proof

A copy of your Voter ID / Passport / Driving License / Aadhaar Card / PAN Card

Address Proof

A copy of your Utility Bill / Bank Statements / Property Registration Documents / Property Tax Receipt / Voter ID

Salary Slips

A Copy of your Salary slips for the last three months / Appointment letter / Yearly increment letter / Certified true copy of Form 16

Income Proof

A copy of your Salary account bank statements for the last six months

Existing Loan Details

Existing loan details should be provided through bank statements

Processing Fee Cheque

To be issued from the salary account for Salaried customer or the business account in case of Self

Home Loan Eligibility for Self-Employed Individuals

For self-employed individuals or entrepreneurs, home loan eligibility criteria are such that they have must at least three years of experience in their current field.

Documents required for Home Loan

Age Proof

A Copy of your Passport, Driving License, Life Insurance Policy, Birth Certificate, PAN Card & School Leaving Certificate

Photo Identity Proof

A copy of your Voter ID / Passport / Driving License / Aadhaar Card / PAN Card

Address Proof

A copy of your Utility Bill / Bank Statements / Property Registration Documents / Property Tax Receipt / Voter ID

Business Proof

A copy of the last two years' Income Tax Returns / your Business profile on letter head / Registration certificate for business commencement

Income Proof

A copy of the last three years' Profit & Loss (P/L) Projection Statement / Operative current account statement for the last six months / Bank statements for the last six months of CC/OD facilities, if taken.

Existing Loan Details

Your existing loan details should be provided through bank statements

Processing Fee Cheque

To be issued from your business account

Home Loan Eligibility for NRIs

For Non-Resident Indians, the following is the home loan eligibility criteria –

Must be within the age group – 24 to 65 years
Must be a salaried individual with at least three years of work experience

Documents required for Home Loan

Age Proof

A Copy of your Passport, Driving License, Life Insurance Policy, Birth Certificate, PAN Card & School Leaving Certificate

Photo Identity Proof

A copy of your Voter ID / Passport / Driving License / Aadhaar Card / PAN Card

Address Proof

A copy of your Utility Bill / Bank Statements / Property Registration Documents / Property Tax Receipt / Voter ID

Salary Slips

A copy of your pay slips for the last six months along with employment stability documents such as appointment letter/previous employment history

Income Proof

Overseas salary account details for Indian NRE/ NRO account statements for the last six months

Credit Report

NRI applicants should submit a Credit Report of their current country of residence, wherever it is applicable as per Tata Capital norms.

Existing Loan Details

Existing loan details should be provided through bank statements

Processing Fee Cheque

To be issued from the salary account for Salaried customer or the business account in case of Self

PMAY Calculator

Balance Transfer Top Up Calculator

Calculate your Eligibility

Area Conversion Calculator

Ways to Improve Your Home Loan Eligibility

There are four major ways in which you can improve your home loan eligibility. They are –

Opting for a Longer Tenure
Improving Your CIBIL Score
Having an Additional Source of Income
Adding a Co-applicant

Let us look at each in detail -

Opting for a Longer Tenure

Home loans with a longer tenure can improve your home loan eligibility as the EMI amount will be lower. Hence, you are more likely to make on-time payments. Home loans with a longer tenure will give you more time for repayment. Home loans with a longer tenure will give you more time for repayment.

Improving Your CIBIL Score

Your loan amount and loan approval are dependent on your CIBIL score or Credit score. If your Credit score is above 750 then it makes you a good candidate for home loans. A good CIBIL score also leads to low home loan interest rates. Repaying debts in a timely manner will improve your CIBIL score and in turn, your home loan eligibility.

Having an Additional Source of Income

Your eligibility for a home loan can be improved by having an additional source of income. This will indicate that you have a higher repayment capacity. An additional source of income can include part-time business, rental income, rent from equipment or machinery, etc.

Adding a Co-applicant

You can improve your home loan eligibility by adding an earning family member with a good credit score as a co-applicant. This will increase the loan amount that you can borrow because your EMI affordability will increase.

FAQ

What are the eligibility criteria to get a home loan?

To be eligible to avail a home loan, you should meet the following criteria –

Age Limit – 24 to 65 years
Salaried Individuals – Minimum salary of Rs. 30,000 and at least two years of work experience
Self-Employed Individuals – At least three years of work experience in the current field

How does your CIBIL score affect home loan eligibility?

CIBIL or Credit Score parameter has the greatest impact on home loan eligibility. CIBIL score is a number assigned to you based on your credit history and a track record of your previous loan repayments, credit card bills, and the likes. Generally, a CIBIL Score ranging between 700 and 900 is considered to be good. CIBIL Scores help in determining the credit-worthiness of home loan applicants or borrowers. The higher your credit-worthiness, the easier it will be to get a home loan.

How to calculate my home loan eligibility?

Home Loan eligibility is calculated after considering a number of factors such as monthly income, current age, fixed monthly obligations, type of employment, academic qualifications and work experience, and credit and payment history.

To calculate your home loan eligibility, you can use a home loan eligibility calculator – a simple online tool using which you can find out your home loan eligibility within seconds.

Does a co-owner help to increase home loan eligibility?

Yes. A co-owner helps to increase home loan eligibility. In fact, one of the ways to increase your home loan eligibility would be to add co-applicants who have an independent source of income. Tata Capital will consider the co-applicant(s)’ income before assessing your repayment capacity. This will naturally increase the amount of home loan that you can be eligible for.

Which factors affect my home loan eligibility?

There are several factors that affect your home loan eligibility –

Age – must be within 24 to 65 years
Income – The greater your monthly income, the higher your home loan eligibility
CIBIL Score or Credit Score – A good CIBIL or Credit score, generally in the range of 750 and above, will improve your chances of getting a home loan
Fixed Monthly Obligations – Must be restricted to 50% of the monthly income
Type of Employment – Home loan eligibility will differ depending on whether you are a salaried individual or self-employed individual
Academic Qualifications and Work Experience – High academic qualifications and impressive work experience increase home loan eligibility

At Tata Capital, we believe in extending home loans that involve minimal paperwork, reasonable interest rates, and flexi EMI plans.

How different is the home loan eligibility of a salaried person as compared to a self-employed person?

Home loan eligibility of a salaried person is as follows –

Applicant should ideally be earning at least Rs. 30,000 per month
Applicant should ideally have at least two years of experience in their current field of work

For a self-employed individual or entrepreneur, there are no conditions in terms of their earnings; however, there is one criterion that must be met for home loan eligibility -

Applicant should ideally have at least three years of experience in their current field

Do the documents required for home loan differ from place to place?

Yes, the documents required for home loan may vary among lenders based on your loan scheme, loan purpose, and individual credit profile. To avail a home loan with Tata Capital, an applicant must present the following documents as valid proofs –