Mortgage Loan Eligibility Criteria



Applying for a mortgage loan is one of the easiest ways to get funds for immediate financial needs. Today, in India, there are plenty of lenders that offer LAP, but each lender has strict rules in terms of eligibility criteria to sanction the application. Read on, to know more about the general eligibility requirements for a mortgage loan. 

Mortgage Loan Eligibility Criteria


Every year, thousands of people apply for a loan against property for different purposes. It is a type of secured loan where you must pledge an asset as Securityagainst the amount you borrow. Generally, the lenders provide up to 40 – 60% of the market value of the property as loan. To qualify for the loan, you must meet specific eligibility requirements of the lender. Although the eligibility criteria may differ from lender to lender, some of the standard parameters all the lenders consider are: 

Age limit:

You must be at least 18 years old to be eligible for a mortgage loan, and the maximum age limit is 65 years.

Residential status:

You must be a resident Indian citizen. 


If you are a salaried employee, your monthly income should be at least 10,000 INR. If you are self-employed, your annual income should be 2 lakh Rupees p.a. ormore.

 Employment history:

If you are a salaried employee, some lenders you must have a work experience of at least three years. Some lenders require the applicants to be employed for a minimum of five years. The lenders consider the employment history mainly to gauge financial stability.

If you are self-employed, your business must be in operation for at least five years, and you must have filed for the ITR (Income Tax Returns) for three years.

 Credit Score:

A good credit score is paramount to be eligible for a mortgage loan. It is one of the crucial factors that the lenders consider while determining the loan amount. A high credit score reflects your creditworthiness and your ability to repay the loan on time. Most lenders in India require applicants to have a minimum credit score of 650.

 Maximum loan tenure:

Whether you are a salaried employee or self employed, you have the flexibility to choose the loan tenure up to 15 years.

 Eligibility criteria

Apart from the above, you must also provide certain documents, including the papers related to the property you want to pledge, income proof, residence proof, and identity proof. If you fail to meet any of the requirements or submit the necessary documents, the lender may reject your application.

 For what purposes can a mortgage loan be used?

One of the main reasons why mortgage loan is the most preferred financing option among people is that it does not have any restrictions on the purposes that you can the amount for. It is a multipurpose loan; you can use the funds for:

  • Medical expenses
  • Paying child’s education fees
  • Meeting wedding expenses
  • Business expansion or starting a new business

You should do your research well about the different lenders, know their eligibility requirements before approaching them.

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