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HOW TO BOOST YOUR HOME LOAN ELIGIBILITY

Posted on Tuesday March 5th, 2019

There are a large number of people in India who requires home loan to fulfill the dream of owning a home in to reality. In the loan process, the first obstacle towards approval of loan application is to meet loan eligibility criterion such as age, income, credit score, location of property, required documents, repayment capacity etc. So ShubhBank has mentioned tips that would assist in enhancing your “Home Loan Eligibility“.

Higher down payment

Most of home loan lenders can finance up to 75-80% of the property’s value. The borrower may have to contribute a minimum of 20-25% as down payment. However,it would be a wise decision to provide a higher contribution from your pocket instead of arranging the minimum down payment. The higher your down payment is, the lower your loan value would be, which in turn Boosts your loan eligibility and increases the chances of loan approval.

Choose longer loan tenure

Mostly borrowers opt for shorter tenure in order to complete their loan repayment. The shorter tenure implies higher EMIs, which may impact the repayment capacity of borrower. It is a good option1 to opt for longer loan tenure. Higher the loan tenure will be, lower your EMIs would be. This will ensure the lender that the EMIs are affordable according to borrower’s income. It is wiser to opt for longer tenure even if you are financially capable to pay higher EMIs through shorter tenure.

Prefer a joint home loan

There are some common reasons behind loan rejection such as low income, higher debt to income ratio etc. In such situations, borrowers need to enhance their loan eligibility to get their application approved. So opting for a joint home loan can help you boost approval chances if the co-applicant has a stable income source and satisfactory repayment capacity. Adding a co-applicant can even make you to secure a higher loan amount. If women are co-applicants or the first loan holders, home loan is usually offered at lower interest rates by a lender.

Maintain a good credit score

Every lender considers your credit score as one of the key parameters to judge your credit worthiness. A good credit score enhances your loan approval chances that signify disciplined handling of finances. Apart from increasing your loan eligibility, a good credit score enables the borrower to avail lower interest rate. If you are having a low credit score, then start planning your budget wisely and consider adopting regular and disciplined usage of credit cards to build a strong credit score, and only then apply for a home loan to avoid any rejection.

Borrowers often apply to various lenders with multiple home loan applications, in the hope of getting one approved. Instead of that borrowers must consider utilizing the online loan eligibility calculator tool, to check their loan eligibility before applying. ShubhBank loan calculator assist you in finding out whether you are eligible or not, according to some factors like your age, income, loan amount, tenure etc.