What to do to get a Home Loan in India?
Real estate buyers, especially first timers, are usually unsure about how to proceed when applying for a loan. If you don’t know the eligibility criteria and the proper procedure, then you may increase your chances of rejection. In order to avoid such missteps, it is important to first understand how to qualify for a Home Loan.
- The financial institution will check your monthly income to see that it is at least twice the amount of your EMI.
- You must have a steady employment record for at least two years.
- You should have a good credit/CIBIL (Credit Information Bureau India Limited) score
- You must fit into their specified age bracket
- You must surpass the minimum salary drawn, depending on your location within India.
What are Some Reasons for Home Loan Application Rejection?
There are many reasons why loans get rejected. Let us take a look at some of the most common ones.
- Sometimes a loan is rejected when the lender realizes that your property is not worth the amount of the loan.
- If you are too young or too old, your application might be rejected by the financial firm.
- If you are repaying multiple loans, then a new lender may not be willing to give you capital.
- If you have many family members who are dependent on only your income to sustain themselves, then you may not be the ideal candidate for a loan.
- If the financial institution sees that you have a low CIBIL score and have a history of making late payments, then your Home Loan may not get approved.
In order to avoid such problems, it is critical to check, understand and fulfil the eligibility criteria. One important step is to know how to improve your CIBIL score. At the end of the month, don’t miss or make late payments on your bills. Additionally, ensure that you don’t come too close to your credit limit every month. Having multiple credit cards shows that you lead a lifestyle that is highly credit-hungry. This definitely puts you in bad light in the eyes of the lender. However, the worst mistake you can make is to not repay a loan. This move will have you blacklisted, which means that no lender will touch you for at least the next 7 years!
What are the Documents Required for a Home Loan?
If you are a salaried individual, then you need to submit a photograph, identity proof, signature sample, address proof, and date of birth proof. Along with these, you will also have to hand in the application form, your income details (like IT returns and salary slips), bank account statement for the last three months, and an appointment letter to show employment proof.
Remember that getting a Home Loan is not a difficult procedure if you have the right knowledge on how to apply. You can use Home Loan EMI calculator to better understand the best loan amounts and tenures to get the lowest possible Home Loan interest rates. Furthermore, you can simply apply online on the Bajaj Finserv website and get a loan of INR 30 lakhs to INR 3 crores within 5 minutes. It’s that easy, if you know what you are doing!