IIFL Home Loan Eligibility

IIFL stands for India Infoline Finance Limited. This is a Reserve Bank of India (RBI) authorised Non-Banking Financial Company (NBFC) involved in the field of providing financial services in India. With operations commencing from 2009, this NBFC has emerged as an important player in the highly competitive field of providing Home Loans.

IIFL has leveraged technology, human resources, and processes to provide comprehensive Home Loans offers designed in a manner that meets the housing needs of a modern individual. Along with the innovative product design that suits individuals from all walks of society, IIFL focuses on superior customer service. IIFL Home Loans have the following features:

• Use of modern technology that helps to process loan applications quickly
• Zero hidden costs. All costs, charges, and fees are transparently explained to borrowers beforehand.
• Presence in all major cities in India
• An easy online presence with 24x7 assistance by dedicated customer service staff that can be approached 365 days a year.
• Superior customer service with options like doorstep services, Personal Loan counseling, and so on.
• Easy balance transfer facility to shift your existing loans from other banks to IIFL
• Flexible Home Loans are provided for not only purchasing new homes but also for home renovations, home construction, and so on.
• Easy option to add a co-applicant to increase loan amount eligibility
• Loan tenure up to 30 years (for salaried) and 20 years (for self-employed)

Loans from any financial institution come with certain eligibility criteria. At IIFL, age, income, the value of the property under consideration, Credit score, and repayment capacity are some of the eligibility criteria for the Home Loan. The major eligibility criteria are as below:

Eligibility of Home Loan Based on Age

For a Home Loan that is a very long-duration loan generally, age plays an important role in deciding the loan amount eligibility. If you have a lower age, it means that you have a long working life ahead of you and hence you may be eligible for a higher loan amount when compared to someone with a higher age.

The maximum loan tenure that IIFL can offer is for 30 years. The minimum age criterion for IIFL Home Loan is 18 years and the maximum age is 70 years. Hence, to avail maximum loan duration of 30 years, applicants should be in their 30s. For loan applicants older than that, the maximum loan duration that can be offered by IIFL will be less than 30 years since otherwise, the borrower will have to service loan post 70 years of age which is generally the retirement age of an individual. The following table provides the maximum tenure of loan that can be offered based on age:

Eligibility Based on Salary/Income of the Borrower

The eligibility of any Home Loan depends on the ability of the borrower to make regular payments. This repayment ability of a borrower is determined by their monthly cash flow which is based on the monthly income of the borrower. Hence, the salary (for a salaried borrower) or monthly income (for a self-employed borrower) is the most important determinant of loan amount eligibility and loan tenure.

If you have a higher salary, it means that you can service the Home Loan during the loan tenure comfortably without downgrading your lifestyle. So, the higher the income, the higher the loan amount eligibility.

For example: At a 25,000 per month salary, at a 9.50% interest rate, the loan amount offered by IIFL could be between 34.87 Lakhs to 38.65 Lakhs depending on your age and for 75,000 per month salary, the eligible loan amount is between 69.73 Lakhs to 77.30 Lakhs depending on your age. Thus, to be eligible for the higher loan amount, make sure you have a higher monthly income. If that is not the case, you can look at adding an earning family member as a co-applicant so that both your incomes are clubbed together to calculate the eligible loan amount. However, the co-applicant should have a clean credit history.

Nature of employment: IIFL checks not only the monthly income of the loan applicant but also the type of job and job stability of a loan applicant. IIFL asks for a minimum income history of around 3 previous years before considering you suitable for a Home Loan.

Eligibility Based on Value of Property

IIFL Home Loan does not finance the entire value of the property under consideration. IIFL calculates the loan-to-value ratio (LTV) and provides loans depending on the value of a property. The following table provides the maximum Home Loan that one can get depending on the value of the property in terms of LTV ratio.

IIFL has an in-house legal team that scrutinizes all the documents related to the property for which the loan is being sought. Before an applicant is considered eligible, the legal team has to verify whether all permissions for the property are in place and there is no issue with ownership of the property previously.

Eligibility Based on CIBIL Score

CIBIL Score: CIBIL full form is Credit Information Bureau (India) Limited). This is a credit information company operating in India to record the payment information of all borrowers. After aggregating the repayment record of each borrower, CIBIL comes up with a score called the CIBIL score which may vary from 300 to 900. CIBIL records whether you have repaid all your previous or existing loans on time and in full. It also records your Credit Card history to come up with a CIBIL report that shows your credit behavior. IIFL uses the CIBIL report and CIBIL score to know what kind of a borrower you are and then decides on loan eligibility. A higher CIBIL score means that you have a relatively clean credit history and can be eligible for a higher loan amount. IIFL has a criterion of a minimum credit score of 650 to be eligible for a Home Loan. Anyone with a lower CIBIL score should first take steps to improve the CIBIL score and then reapply for a loan at IIFL. Some factors that decide your CIBIL score are:

• Credit limit utilization: If you frequently use up the entire credit limit allocated to you, it means that there may be a case of financial irregularity or indiscipline which could reduce your CIBIL score.
• Delayed payments: CIBIL records the timing of all your repayments for any loan. Any irregularity in payment or delay in repaying your existing loan or Credit Card is recorded by CIBIL and shall reduce your CIBIL score. Hence, care should be taken that all loans are repaid in full before the due dates.
• Too many unsecured loans: IIFL favors a borrower who has a balance between secured and unsecured loans. A higher number of unsecured loans indicates financial stress and can negatively affect the CIBIL score.
• Multiple Home Loan applications: Care should be taken that you apply for only one Home Loan at a time with one lender. Multiple Home Loan applications indicate desperation on your part and can negatively affect your CIBIL score.

Eligibility Based on FOIR

FOIR stands for Fixed Obligation to Income Ratio. This is an important parameter used to determine the repayment capacity of a loan applicant. The fixed obligation includes all your recurring fixed expenses every month including current equated monthly installments (EMIs), rent, other fixed expenses, and take-home income. The ratio shows what percentage of your monthly income goes to clear your fixed expenses. IIFL prefers borrowers with a FOIR of 0.65.

To improve the chances of getting higher loan amount eligibility at IIFL, you can try the following:

• Repay all existing loans and Credit Card dues to increase your repayment capacity
• Add your spouse's income to increase your loan amount eligibility
• Show all other sources of income that you may have like house rent, interest from fixed deposits, and so on.
• Show that you have a good track record at your job and your employer offers regular bonuses and benefits if any.

Documents required to apply for an IIFL Home Loan are mentioned below:

Documents Required for Pradhan Mantri Awas Yojana (PMAY)/ New Home Loan/ Swaraj Home Loan/ Home Improvement Loan/ Balance Transfer

• For Salaried Applicants
  • Duly filled application form
  • PAN Card
  • Proof of identity (anyone): PAN card, voter card, Aadhaar card, passport, driving license, photo credit card, government-issued photo identity card, a letter from recognised public authority/ public servant verifying borrower's identity with photograph (should not be more than 30 days old).
  • Proof of residence (any one): Aadhaar card, voter card, passport, letter from recognised public authority/ public servant verifying borrower's identity and residence, rent agreement on stamp paper, recent utility bill, bank statements of any commercial nationalised bank mentioning borrower's address, Life Insurance Policy, credit card statement (should not be older than 3 months), certificate of residence address, letter by employer on company's letterhead, property's sale deed copy (if owned), property or municipal tax receipt, pension or family pension payment orders issued by government departments or PSUs to retired employees (if they contain borrower's address), post office savings bank account statement, documents issued by government departments of foreign jurisdiction & letter issued by Foreign Embassy/ Mission in India, letter of accommodation allotment or leave and license agreement from employer issued by State/ Central government departments/statutory or regulatory bodies/ PSUs/ scheduled commercial banks/ financial institutions/ listed companies.
  • Income proof: Salary slips for last 2 months, bank statement of salaried account of last 6 months, latest ITR/ Form 16.
  • Documents for existing loans with 6 months' bank statements for repayment
  • Property documents: Copy of property's complete chain documents, Agreement to Sell, Allotment Letter/ Buyer Agreement, receipt(s) of payment(s) made to the developer.
• For Self-employed Applicants
  • Duly filled application form
  • PAN Card
  • Proof of identity (anyone): PAN card, voter card, Aadhaar card, passport, driving license, photo credit card, government-issued photo identity card, a letter from recognised public authority/ public servant verifying borrower's identity with photograph (should not be more than 30 days old).
  • Proof of residence (any one): Aadhaar card, voter card, passport, letter from recognised public authority/ public servant verifying borrower's identity and residence, rent agreement on stamp paper, recent utility bill, bank statements of any commercial nationalised bank mentioning borrower's address, Life Insurance Policy, credit card statement (should not be older than 3 months), certificate of residence address, letter by employer on company's letterhead, property's sale deed copy (if owned), property or municipal tax receipt, pension or family pension payment orders issued by government departments or PSUs to retired employees (if they contain borrower's address), post office savings bank account statement, documents issued by government departments of foreign jurisdiction & letter issued by Foreign Embassy/ Mission in India, letter of accommodation allotment or leave and license agreement from employer issued by State/ Central government departments/statutory or regulatory bodies/ PSUs/ scheduled commercial banks/ financial institutions/ listed companies.
  • Income proof: Last 2 years with computation, Balance Sheet, and P&L account with all annexures (duly certified by CA and audited if applicable), last 6 months savings account statement of individual and current account statement of the business entity
  • Documents for existing loans with 6 months' bank statements for repayment
  • Latest shareholding pattern list (duly certified by CA/ CS)
  • MOA (if private limited company)
  • Partnership deed (if partnership firm)
  • Property documents: Copy of property's complete chain documents, Agreement to Sell, Allotment Letter/ Buyer Agreement, receipt(s) of payment(s) made to the developer.

Documents Required for NRI Home Loan

• For Salaried Applicants
  • Duly filled application form
  • Proof of identity (mandatory): Valid Visa, Passport, copy of Rent Deed/ title document as proof of foreign residence.
  • Proof of identity (optional - any one): PAN card, voter card, Aadhaar card, passport, driving license, photo credit card, government-issued photo identity card, a letter from recognised public authority/ public servant verifying borrower's identity with photograph (should not be more than 30 days old).
  • Proof of identity (mandatory): Valid Visa, Passport, copy of Rent Deed/ title document as proof of foreign residence.
  • Proof of residence (optional - any one): Aadhaar card, voter card, passport, letter from recognised public authority/ public servant verifying borrower's identity and residence, rent agreement on stamp paper, recent utility bill, bank statements of any commercial nationalised bank mentioning borrower's address, Life Insurance Policy, credit card statement (should not be older than 3 months), certificate of residence address, letter by employer on company's letterhead, property's sale deed copy (if owned), property or municipal tax receipt, pension or family pension payment orders issued by government departments or PSUs to retired employees (if they contain borrower's address), post office savings bank account statement, documents issued by government departments of foreign jurisdiction & letter issued by Foreign Embassy/ Mission in India, letter of accommodation allotment or leave and license agreement from employer issued by State/ Central government departments/statutory or regulatory bodies/ PSUs/ scheduled commercial banks/ financial institutions/ listed companies.
  • Income proof: Salary slips for the last 2 months, bank statement of NRP/NRE and foreign bank account of last 6 months, appointment letter/ contract letter/ increment letter, valid work permit.
  • Documents for existing loans with 6 months' bank statements for repayment
  • Property documents: Copy of property's complete chain documents, Agreement to Sell, Allotment Letter/ Buyer Agreement, receipt(s) of payment(s) made to the developer.
• For Self-employed Applicants
  • Duly filled application form
  • Proof of identity (mandatory): Valid Visa, Passport, copy of Rent Deed/ title document as proof of foreign residence.
  • Proof of identity (optional - anyone): PAN card, voter card, Aadhaar card, passport, driving license, photo credit card, government-issued photo identity card, a letter from recognised public authority/ public servant verifying borrower's identity with photograph (should not be more than 30 days old).
  • Proof of identity (mandatory): Valid Visa, Passport, copy of Rent Deed/ title document as proof of foreign residence.
  • Proof of residence (optional - any one): Aadhaar card, voter card, passport, letter from recognised public authority/ public servant verifying borrower's identity and residence, rent agreement on stamp paper, recent utility bill, bank statements of any commercial nationalised bank mentioning borrower's address, Life Insurance Policy, credit card statement (should not be older than 3 months), certificate of residence address, letter by employer on company's letterhead, property's sale deed copy (if owned), property or municipal tax receipt, pension or family pension payment orders issued by government departments or PSUs to retired employees (if they contain borrower's address), post office savings bank account statement, documents issued by government departments of foreign jurisdiction & letter issued by Foreign Embassy/ Mission in India, letter of accommodation allotment or leave and license agreement from employer issued by State/ Central government departments/statutory or regulatory bodies/ PSUs/ scheduled commercial banks/ financial institutions/ listed companies.
  • Proof of address for the business entity (anyone): Shops and Establishment Certificate, SSI Registration Certificate, Trade License Certificate, PAN Card/ Sales Tax/ VAT Registration Certificate, Memorandum of Association (MOA) for companies or Partnership Deed (for firms), Export Import Code Certificate or Factory Registration Certificate, Certificate for Professional Qualification, Certificate & Certificate for Professionals, Registration No issued by ROC, SEBI Registration Certificate.
  • Income proof: Salary slips for the last 2 months, bank statement of NRP/NRE and foreign bank account of last 6 months, appointment letter/ contract letter/ increment letter, valid work permit.
  • Documents for existing loans with 6 months' bank statements for repayment
  • Latest shareholding pattern list (duly certified by CA/ CS)
  • MOA (if private limited company)
  • Partnership deed (if partnership firm)
  • Property documents: Copy of property's complete chain documents, Agreement to Sell, Allotment Letter/ Buyer Agreement, receipt(s) of payment(s) made to the developer.

• Swaraj Home Loan: IIFL offers this loan to a massive community of first-time home buyers who may lack the backing of formal income and the documentation that is required by financial institutions.
• New Home Loan: These types of loans are given to salaried and self-employed individuals to purchase row houses, plots, bungalows, and flats.
• NRI Home Loan: IIFL offers this loan to buyers who are settled outside India but wish to invest by buying property.
• Home Improvement Loan: IIFL offers this loan to people who require finances to expand or remodel their existing house.
• Balance Transfer: This scheme from IIFL lets you transfer your existing Home Loan from any bank or NBFC to IIFL.
• Pradhan Mantri Awas Yojana (PMAY): IIFL provides Home Loans to individuals at subsidised rates which are in line with the Pradhan Mantri Awas Yojana to provide affordable housing to all.