3 Tips to Increase the Home Loan Eligibility for Salaried Individuals
Suman Adhikari
Securing a home loan for your dream property involves fair amount of planning. If you are in service, you need to check on the criterion for eligibility for home loans for a salaried person in your salary range. Home loans are also available for self-employed professionals. Look for a trustworthy housing finance company that offers the best customer service, quick processing of documents, competitive interest rates, and a flexible repayment schedule that suits you.
Your lender should also be your mentor, guiding you about the requirement of home loan ke liye documents and holding your hand through the loan approval process. You could also do with some added advice on improving CIBIL scores for easy approval or ways to increase loan eligibility. Let us look at some ways to improve the eligibility factor of your home loan.
Also, Read – Impact of EMI Defaults on CIBIL Score
Knowing How to Increase Eligibility for a Home Loan: Smart Tips
Tip 1: Choose a Longer Tenure for Prepayment: When you increase the tenure for your home loan, the lender now knows that you have more time to arrange for funds. He is more confident that payments will happen in time. This sense of security may increase your eligibility as a borrower. Your lender may now agree to offer a little extra for the same salary bracket.
Tip 2: Include a Co-Applicant: Another smart way to increase your eligibility is by adding a co-applicant, ideally your working spouse, with a good credit score. When you co-apply for a home loan with your spouse, the amount sanctioned may be higher because the affordability to pay EMIs improves. Other family members, like siblings, for instance, can also be co-applicants. Lenders may also club the incomes of different family members to enhance home loan eligibility for a salaried person, at competitive interest rates.
Tip 3: Pre-Pay All Your Existing Loans: If you already have pending loans on you at the time of applying for home loans, eligibility will take a hit. Lenders will take into account all other fixed payments you need to honor every month, along with the home loan EMI, and decide on an amount that will be affordable for you to repay. If you prepay other loans and then apply for a home loan, they will be confident offering you a larger amount as loan.
Also, Read – How Loan Settlement Effect CIBIL Score
One important determining factor for home loan eligibility is the CIBIL score. CIBIL stands for Credit Information Bureau (India) Limited. The higher the CIBIL score, the easier it is to find a home loan offering the desired amount. Typically, a CIBIL score of around 750 or higher, is ideal for scoring big on the eligibility front.
There are housing finance companies offering subsidies on home loans, subject to eligibility. These loans are offered in line with the Pradhan Mantri Awas Yojana and are meant for Lower as well as Middle Income Groups. If eligible, there are loans not only for new property purchases but also for renovating old ones, buying land, refurbishment of homes, and so on.