A Quick Look at the Home Loan Eligibility Criteria!by Arwind Sharma Finance Advisor
Wanted to avail a Home Loan, but are not aware of the Home Loan eligibility criteria? Let’s quickly help you get the details right away!
What is a Home Loan?
A Home Loan is the sum of money that’s provided to a borrower from a lender to buy a house. Banks, non-banking finance companies (NBFCs) and Home Loan finance agencies provide Home Loan online and implement a hassle-free process.
If you have the required eligibility and the creditworthiness, you can be sure to avail a Home Loan at a reduced rate of interest from Rs.20 lakh to Rs.10 crore on an extended tenor.
When it comes to availing a Home Loan, you need to be aware of the Home Loan eligibility criteria so that you are ready for a house loan.
Moreover, there are online tools available such as Home Loan Eligibility Calculator and EMI Calculator that will ease your Home Loan process.
What are the Home Loan eligibility criteria?
Here are some standard Home Loan eligibility criteria that reputed lenders look in their borrowers. These may change from a lender to lender:
You ought to be a citizen of India
Your age should be under 25-58 years
You should be a salaried class individual and employed for a minimum period of three years
Along with the above Home Loan eligibility criteria, you should also have a high credit score, a good repayment history to further boost your Home Loan approval prospects.
3 Quick Tips to Boost Your Home Loan Eligibility
A higher CIBIL score is mandatory
If you are nearing a Home Loan application stage, you will need to keep your credit or CIBIL score up. Yes, if you have a CIBIL score that reads 750+, bingo! A lender will not only approve your application for a house loan but even offer you a lower Home Loan interest rate. If you don’t have a good score, your application may not approve, or even if it’s approved, you may get a higher rate of interest, making it almost unaffordable for you to manage. Thus, try to have a good CIBIL score by paying all previous bills and loan EMIs on time and get closer to a Home Loan approval.
Manage your existing debts smartly
While assessing your Home Loan eligibility, a creditor will also analyze if you have managed your previous debts and have a clean repayment history or not. It’s because if you have too many debts on your profile, lenders may doubt your repayment potential. Thus, make it a point to clear all your existing loan EMIs, outstanding amount on your credit card and any other liabilities and then apply for a housing loan.
Be sure to be consistent in your job
If you have not been consistent in your job and love to switch jobs frequently, it’s time to keep it off if you are willing to apply for a Home Loan. Lenders consider only such salaried applicants eligible who have at least 3 years of employment history.
Also Read: Tips to Improve Home Loan eligibility
The Bottom LineNow that your concept of Home Loan eligibility criteria is clear, try to maintain it if you want to go for a house loan to buy the home of your dream. If you are short of some criteria, deploy above-discussed tips and boost it.
Created on Jan 15th 2018 03:43. Viewed 673 times.