As per the RBI directions, a housing loan vendor can approve loan applications requesting only up to 70%-80% of the property’s value. Having said that, obtaining even 70% of the property’s value as housing finance is a hell of a task. Therefore, if you have been planning to use a housing loan to finance the purchase of your dream house, wake up and do the reality check. Find out if your financing plan is practically viable or not. While you do that, take a look at Home Loan eligibility criteria and if you are lacking anywhere then below mentioned factors will help you to enhance your Home Loan eligibility.
In fact, you can utilise the Home Loan Eligibility calculator to check how much you can borrow. This online calculator is easily available on your selected lender's website where you need to put basic information like monthly salary, required tenure, location etc.
1. Credit/CIBIL score
CIBIL score is the devil in disguise. If you don’t maintain a healthy credit score, your loan application has the maximum chances of rejection. On the other hand, if you have a healthy credit score, equal to or above 750, the approval percentage increases to a maximum. Hence, maintain a credit score before making a credit request.
2. Annual Income
Every housing loan vendor has strict policies regarding income eligibility of Home Loan applicant. The lender expects all their prospective customers to qualify their minimum criteria in order to get considered for a loan. The income criteria basically help the lender determine the repayment capacity of the borrower. Therefore, check the lender about the minimum income criteria before applying.
3. Age and Experience
Age and the work experience of the applicant is one of the key factors playing a significant role in loan approval. The applicant should be at least 25 years old and should have a minimum work experience of three years.
Bottom Line: If you’re planning to take a Home Loan, make sure you qualify in the first attempt. Use the above-mentioned eligibility criteria to gauge your eligibility.