Home Loan

Crucial Home Loan Eligibility and Application Process to Be Aware of

Laveena and Raveena started a journey to secure their dream homes. They understood the importance of availing a home loan, and their story sheds light on the crucial aspects of home loan eligibility and the application process in India, specifically with Indiabulls Home Loan and Mahindra Home Finance.

Importance of availing home loan

Laveena and Raveena knew that owning a home was not just about having a place to live but also an investment for the future. Here are 15 key benefits of availing a home loan –

Equity building

Homeownership is like a long-term savings plan. As and when you make the repayment of your mortgage loan, you gradually form equity in your availed home through a loan. Over time, this equity can be a valuable financial asset.

Tax Benefits (Sections 24 and 80C)

When you avail a home loan, you qualify for a tax deduction as per Section 80 C and Section 24 b. Section 80 C allows deductions on principal component repayment, further reducing your tax liability while Section 24 b permits you to get deductions on the loan’s interest paid, lowering your taxable income. This leads to considerable tax savings. 

Investment for a long-term horizon

Property values have historically tended to be appreciated over the years. Investing in a home can potentially provide a substantial return on investment when you decide to sell or even as a rental property.

Credit score improvement

Timely home loan payments can positively impact your credit score. Maintaining a strong score opens vast opportunities for a lower rate of interest and better financial products, which you can avail in the future. 


Availing a home offers security and stability for you as well as your family. You have the assurance of a permanent place to call your own, eliminating worries about frequent moves due to rental agreements.

Financial discipline

Home loans encourage disciplined savings. Committing to regular EMIs instils a sense of financial responsibility and helps you manage your budget effectively.

Retirement nest egg

Your home can serve as a retirement asset. As you pay off your mortgage, you eliminate a significant monthly expense, allowing you to enjoy a more comfortable retirement with reduced financial stress.

Leverage future investments

Property can be leveraged for future investments. As property values increase, you can use the equity you’ve built to secure additional loans for other financial goals, such as starting a business or funding your child’s education.

Sense of accomplishment

Owning a home brings a profound sense of accomplishment. It’s a tangible manifestation of your hard work and financial stability, giving you a sense of pride and achievement.

Freedom to customise

When you have a home of your own, you even get the liberty to personalise it as per your preference. You can decorate, renovate, or modify any area as per your needs without seeking any permission. 

Asset for heirs

Your bought home can be passed to generations offering a legacy to your family members. This ensures your dependents have a secure space to reside and serves as a treasured inheritance. 

No rent expenses

One of the crucial homeownership benefits is that you do not need to pay any rent. 

Savings on inflation

Owning a home can protect you from rising rents due to inflation. As rental rates increase, your fixed-mortgage payments remain unchanged, resulting in long-term savings.

Rental income

In case you have any additional space in your home, then you can put it up for rent and earn rental income. This additional income can assist offset mortgage payments as well as offer an additional layer of financial security. 

Sense of belonging

When you become a homeowner, you become an essential part of the community where you begin residing. You form friendships with neighbours as well as contribute to the social fabric. This fosters community pride and a sense of belonging. 

Eligibility criteria –

Before diving into the home loan application process, Laveena and Raveena discovered the 10 essential eligibility criteria for home loans –


A steady source of income is necessary.


Applicants typically need to be between 21 and 65 years old.

Credit score

A good credit score is preferred (usually 750 or above).

Property documents

Clean property title documents.


A stable employment history is important.

Loan amount

Lenders consider the loan amount relative to the property’s value.

Existing debt

Existing loans and debts affect eligibility.


Adding a co-applicant can enhance eligibility.

Property type

The type and location of the property matter.


Accurate and complete documentation is crucial.

Home loan application process –

Now, let’s explore the application process, both offline and online –

Online application –


Laveena and Raveena began by researching Indiabulls Home Loan and Mahindra Home Finance online.


They used online calculators to get an estimate of their eligibility.


Scanned copies of documents were uploaded, including identity proof, income proof, property documents, and bank statements.

Application form

They filled out the online application form.


The lenders verified the submitted documents.


Once approved, they received the loan offer electronically.


They accepted the offer online.


The loan amount was disbursed directly to the seller.

Offline application –

Visit branch

They could have visited the nearest branch of the lender.

Meet loan officer

They discussed their requirements with a loan officer.

Document submission

Physical copies of documents were submitted.

Application form

They filled out a paper application form.


The lender verified the documents.


Once approved, they received a physical loan offer.


They accepted the offer in person.


The loan amount was disbursed to the seller.

As Laveena and Raveena moved into their dream homes, they realised that the journey to securing a home loan had been both rewarding and fulfilling. Their story illustrates the significance of understanding home loan eligibility criteria and the application process. It is not only brick and mortar, but it is about securing a place and building the future that you need. So, in the case, you are looking to head for a similar journey, then be sure to research well, plan out and explore distinct options to turn your dreams into actuality.