4 Tips to Increase your Home Loan Eligibility

All About Home Loan Eligibility

In the past few months, Home Loan interest rates have risen to an unprecedented degree. The loan eligibility for home loans in India has definitely been affected by this in turn. It helps loan applicants to re-evaluate their options to make use of new eligibility conditions.

Given below are some ways by which you can enhance your Home Loan Eligibility:

Increase Your Loan tenure:

Taking Home Loan The simplest known way to increase the eligibility of your home loan is for the Full Tenure. An image will shed a big light on the future. A person earning a monthly wage of Rs 60,000 is reduced to buy a home loan. The person is capable of saving Rs 25,000 after deducting a monthly expenditure of Rs 35,000. Undoubtedly, by equivalent monthly installments (EMI), he would use his savings to repay the loan.

Now, let’s consider the interest rate in order to calculate the EMI needed. At an interest rate of 12.5 percent and a term of 15 years, the payments for a home loan of Rs 1 lakh stand at Rs 1,232.5. His home loan eligibility will be 20.3 lakh with regard to the same results. The same person will, however, increase his eligibility for home loans by around Rs 2 lakh if he extends his term to 20 years. The EMI turns out to be Rs 1,136 with the same rate of interest, i.e. 12.5 percent and 20 year term on the Rs 1 lakh loan. Thus, the eligibility for home loans comes to Rs 22 lakh.

Know more about Home Loan Interest Rates.

Never Hurry Your Way towards Your Home Loan:

Nowadays, almost every bank is offering a home loan with a repayment period of a maximum of 20 years. Apart from the tenure, the only thing which is left to consider is the rate of interest. For that reason, you should never rush to buy a home loan. Always carry out research and study the market meticulously to make the best use of what many banks and housing finance companies are willing to lend.

Then, you have to decide between floating and fixed Home Loan Interest Rates which largely based on your personal preference and knowledge about both. However, the floating rate home loans are available for anywhere between 11.5-13%.

Know more about Home Loan documents required.

Repay other outstanding Loans:

Repay all the other pending outstanding loans like Car Loans or Personal Loans. It adds to your ability to repay and the lending institution takes a greater interest in giving you a home loan.

Know more about Home Loan EMI Calculator.

Take a Joint Loan:

For both the spouse and the wife earning a combined Rs 1 lakh per month, banks and HFCs have come up with a joint loan option. For a larger loan with either a husband or wife earning Rs 60,000 per month, the option is open.

Know more about Home Loan eligibility criteria.