Posted on Thursday November 22nd, 2018

A home credit is basically a certain amount of cash borrowed from any money lending company or a financial institution at a definite interest rate which is to be reimbursed with the EMI every month. Usually, money lending companies take property from the particular applicant as collateral for the residential credit. If you are looking forward to applying for this advance, so you need to fulfill home loan eligibility criteria first.

● The particular can be personal or commercial.
● In case, the borrower is unable to reimburse the due amount on time then the lender or financial institution has all the rights to sell the property in order to recover due amount easily.

Types of residential loan

Residential improvement – This type of residential credit includes repairs and renovation of your resident.
Residential construction – This residential credit type is useful and beneficial when you are planning to build a new house.
Land purchase – This credit is offered to the individuals who plan to buy a plot of and in order to build a new house.
Residential extension – For instance- if you are planning to include another room, garage, kitchen or bathroom to your home. This is the credit you can easily avail for yourself and it also comes useful when you are planning to construct a new floor.
Joint residential – Such kind of credits are usually taken by two or more people. For example- partners or spouses can surely apply for this type of credit.
Resident purchase – Potential individuals usually apply for this convenient credit type when they plan to buy a new house.

Eligibility criteria for residential loan-
Eligibility criteria for the particular credit normally vary from one bank to another. Financial institutions normally offer credit to potential customers. Firstly they check whether the customer is capable of paying the due amount in future or not. Here are some basic eligibility criteria required by every financial institution-

● The person who is applying for this loan should be self-employed or salaried with regular income source.
● A salaried individual must have at least 2 or more than 2 years of work experience.
● Banks or financial institutions offer this type or loan of the individuals are between 20-60 years of age. Nevertheless, for self-employed individuals, the age criteria will change to 24-65 years.
● Individuals must have good credit ratings. As good loan ratings increase the chances of getting the credit with more flexibility.

When a borrower fails to repay the outstanding credit on time, the money lender will have all the legal rights to sell your property. There are various “Home Loan Offers” provided fulfill homicidal institutions or money lending companies. If you want to apply for any type of residential credit, go and thoroughly know everything about the credit first and find out the suitable one for yourself. To apply for the residential credit, you require to fulfill the eligibility criteria thoroughly and documentation process as well. After that, you can easily go for the residential credit without any problem.