Home loan eligibility is a marker of how much loan will the bank offer you to own a house, and whether you are eligible for a loan or not. There are certain factors to be considered while accounting for home loan eligibility:

Factors taken into consideration:

Income: A regular source of income, from a reputed employer betters the chance of loan approval.

Credit History: A clean repayment or no-dues history adds credence to the loan application. In addition, a good credit score increases the chances of your credibility.

Applicants age: Age plays a vital role, with a maximum loan term capped at 30 years or age of retirement, a young person has the advantage of availing a longer-term loan.

Source of Income: Ensure you have a steady income flow, and regular savings & investments. If you’re salaried with a reputable company, the process is easier. Employees of government and PSU’s get preference since they are considered in stable jobs. Architects, doctors, also have an upper hand in this regard. Self-employed applicants will have to provide multiple documents like bank statements, ITR

Existing Relationship with Bank: If you have a salary account with the same bank, from where you are seeking a loan, then it works in your favour. To add, timely repayments on credit cards and loans from the same bank, also adds immense value to loan eligibility

Tips to enhance your home eligibility:

Paying off existing loans: If you have an existing loan under your name, it is recommended to pre-pay before applying for a new loan. Due to the non-prepayment of ongoing loan, there is a higher chance of the lender reducing the new loan amount or offer loan on a higher interest rate.

Adding co-applicants: Add an earning close member such as your spouse or parents, as co-applicant to the loan

Declaring all sources of income: Showcasing other sources of income such as dividends drawn on investments and rentals help. Performance bonuses, over time, commissions can also be discussed to add more weightage to the application

Improving CIBIL score: Credit score or CIBIL above 750 is considered good, and makes you more credit worthy and risk-free borrower for the lender.

Go for a Longer Tenure: Although the interest liability is higher, but choosing a longer term can help you in getting a loan of your choice.

Choose reputed projects/ credible builders: Projects from brands of lesser known builders, may not exude trust, thereby increasing chances of rejection. Try to inquire about exclusive offers from lenders, where they tie up with reputed names & offer customized deals.

 


Learn more about your home loan eligibility here.

Find more about the home loans from Aditya Birla Home Finance

* Terms & conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.