Factors which Affect Your Home Loan Eligibility

To be eligible for a home loan, you must be an Indian citizen and at least 23 years of age. Apart from that, lenders employ a range of criteria to verify and assess your eligibility for a home loan. These include your age, your income, your credit history, and your city of residency, among others. Therefore, in order to obtain a speedy home loan sanction letter for a large loan amount at nominal interest rates, you must match the following home loan eligibility conditions. Consider the aspects that contribute to your qualifying for a home loan.

Your credit rating

A healthy credit score of 750 or higher might have a direct effect on the interest rates offered on house loans. Your credit score is calculated using characteristics such as your repayment history, the number of outstanding loans and credit card balances, and the type of debt you have incurred in the past. Thus, a lender can use this score to determine your financial trustworthiness and determine your ability to repay the loan before authorising it.

Your current financial responsibilities

Numerous debts and loans present no difficulty. Unpaid debts, on the other hand, are a constant source of stress for lenders. Additionally, lenders pay close attention to your payback history. They are concerned about consistently missing EMI payments, making EMI payments after the due date, and various unpaid dues. Therefore, maintain discipline in your credit repayment in order to obtain a large amount sanctioned with flexible conditions and a nominal interest rate.

Your earnings

Each lender establishes a minimum income requirement based on the city in which you live and work. Meet these conditions to easily qualify for an e-home loan. For instance, you can qualify for a Home Loan sanction of Rs. 5 crore or more with a 30-year repayment period from lenders such as Bajaj Finserv if you earn a minimum of Rs. 25,000 per month in places such as Gurugram, Hyderabad, or Kolkata. Additionally, you receive benefits such as a 3-EMI holiday, a low-interest top-up loan, and repayment flexibility with this NBFC on your house loan.

Additionally, see the advantages of NBFCs over banks.

Read Also: Invest in Real Estate: 5 Ways to Get Started

Your current employment situation

Your employment status, like your salary, is critical. Being employed by a multinational corporation or a reputable commercial or public-sector organisation makes you more trustworthy as a borrower. Similarly, if you are self-employed and have a regular company income, lenders are more likely to provide you a flexible loan than someone with an unpredictable employment or business.

Your chronological age

All of the above-mentioned home loan eligibility criteria are considered in conjunction with your age. The lender is concerned with the number of years remaining on your salary or as a working professional. Obtaining a home loan decades before retirement, during your early career years, enables you to obtain a speedy sanction on a sufficient amount. To determine your eligibility, you can visit the websites of lenders such as Bajaj Finserv and use the Home Loan Eligibility Calculator. Additionally, you can view the estimated home loan amount for which you qualify.

Details about your property and the LTV ratio

Lenders are also concerned with the property or home for which you are applying for a home loan. This is because your property serves as the security for the loan. As a result, if your property is worth more, you will qualify for a larger loan, and vice versa. Therefore, find the appropriate property that has the potential to appreciate in value in order to acquire significant funds. Second, lenders assess the amount of the down payment and the amount of financing required. If you can make a 20% down payment, you can easily qualify for a home loan. If you require additional funds, you may be unable to get them or may be required to pay a higher home loan interest rate.

You might like


About the Author: brad

Brad is lead editor and content writer at HubCrave, and has invested in online properties since 2021. Brad holds an MBA from the University of Dundee and an MSc from the University of Edinburgh.

Leave a Reply

Your email address will not be published. Required fields are marked *