5 Tips to Improve Your Home Loan Eligibility
If you are looking at buying a flat or a house and find yourself lacking the necessary funds, then applying for a Home Loan is probably your safest bet. In order to get a loan, you need to know more about your Home Loan eligibility. In this article, you will read about how you can maximize your Home Loan eligibility.
What do Financiers Look for Banks usually look at your present financial standing, which is the ‘account Status’ of your Credit Information Report (CIR). After that, they will look your history of past payments and dues. If you have late payments or overdue debts, then your chances of getting a loan approved decrease significantly.
The next element is the profile of the company you work for. Financiers keep records of companies and businesses that have been regularly approved for loans. If you are employed by a recognised company, it actually adds to your loan eligibility. Finally, banks make use of the Home Loan EMI Calculator. If the EMI for the loan exceeds half of your salary, then chances for your loan getting approved reduces. Companies like Bajaj Finserv look at different factors while sanctioning a Home Loan, which varies depending on the applicant. Salaried professionals, self-employed individuals, and companies are all eligible.
5 Tips to Increase Your Home Loan Eligibility
Extend the Tenure
The loan amount and interest rates will not change despite the length of your loan tenure. If it’s an extended period, the EMI will be significantly lower, which means it’s easier to pay each month’s expenses. If you’re able to pay your EMI instalments in a timely manner, your loan eligibility will definitely increase.
Settle All Previous Debts
By paying off existing debt, the previous EMI amounts would be freed up and could go towards the new loan payments. As a rule, individuals with multiple loans to be paid, run the risk of having their loan applications rejected. This is because lenders perceive them as high-risk borrowers.
If you live in a family where your income is not the only source of money, then club together with other family members to apply for the loan. For example, if you are applying for a loan of INR 20,00,000 but the criteria you meet makes you eligible for only INR 10,00,000, then the loan wouldn’t be sanctioned. If you club the incomes of the other members of the family with yours, then the criteria shifts, and your eligibility increases.
Include Perks and Bonuses
When calculating the instalments of your loan, include other sources of income like performance-linked bonuses. In the long run, this will increase your eligibility for a loan.
Opt For a Step-Up Loan
A step-up loan is where you pay lower EMIs during the start of the tenure. Periodically, the EMI amount increases and towards the second half of your tenure, you will end up paying more than the initial payments. This option takes into consideration potential salary hikes, which in turn increases eligibility.
While keeping these tips in mind, don’t forget to look into Home Loan interest rates offered by financiers. Once you factor in all the aspects of taking a Home Loan, then you can go about applying for one. NBFCs like Bajaj Finserv, allow you to apply online for a Home Loan.