• Travel
  • Business
  • Finance
  • Tech
General Blog
  • Auto
  • Business
    • Finance
  • Education
  • Entertainment
    • Sports
  • Health
    • Food
    • Dental Care
  • Home Improvement
  • Lifestyle
    • Fashion
  • Tech
  • Travel
  • Contact Us
  • Home
  • Finance
  • What are the 6 factors that affect your home loan eligibility?

What are the 6 factors that affect your home loan eligibility?

admin
February 4, 2020 No Comments
home loan

1,741 Views

The eligibility to get a home loan in India is that the applicant must be a citizen of India and should have attained 21 years of age. Other than these criteria, there are other parameters that the banks take into consideration before approving the application for a home loan.

To decide the eligibility of an individual, banks take into consideration factors like the financial stability of the individual, past repayment history, age, etc. These factors further allow the lender to decide whether a person is capable of repaying the sanctioned amount within the tenure.

The credit score of the applicant

The credit score is a major factor in getting a home loan approved. A high credit score not only helps in getting a home loan easily but also helps in negotiating for the interest rates. A credit score is dependent on several factors like your existing debts, your repayment terms or credit card dues. These factors, when combined, generate a credit score, also known as CIBIL score. A CIBIL score above 750 is considered excellent and allows getting a home loan rather quickly with a low-interest rate.

Existing debts or dues

You may have several loans, and that is not a problem with your loan lender, the problem is when you have unpaid dues. So, the lender always looks on your pattern of repayment, such as how disciplined were your repayment. Missing due dates for EMIs is what makes the lenders alert about your repayment approach. To be disciplined on the repayments is necessary to have a seamless loan approval process.

The income of the individual

Income of the individual depending upon the city in which he works also plays an important role in reaching the minimum eligibility. Unconventional jobs which have an inconsistent flow of income raises doubts for the lender and also lowers the chances of getting a home loan.

Age of the applicant

A home loan is generally approved for a tenure of 25 years to 30 years. So younger the age of the individual greater will be the chances of getting the loan approved. Lenders hesitate to give away loans if they find you nearer to your retirement age. So, if you have taken a loan at the age 30 considering that you would retire at 60. The lender could easily approve you a tenure of 30 years while if you apply for a loan at the age 40, you can get repayment tenure of 20 years.

Employment status of the applicant

If you are employed with a renowned MNC or a private company, the banks, consider you more reliable to approve a loan. Similarly, if you are self-employed and you have a steady business, you are likely to get an approval on flexible terms.

Property details and LTV ratio

The property of the home and its value in future is also determined without sanctioning a home loan. If the value of the property is worth more in future, you have a higher potential of getting a home loan.

Other than these facts, lenders also consider the percentage of the down payment that you are paying against your loan. Generally, 10% of the loan amount is required for a down payment. So, if you have funds to pay at least 20% of the loan amount as down payment, the chances of getting a home loan are even higher.

Post navigation

How to Time Your Car Purchase
The Many Outstanding Features of Electric Cars

Related Articles

online payments,

Top Features of Banking Apps for Faster and Safer Online Payments

admin
January 6, 2025January 6, 2025 No Comments
Using Online Bill Payment Apps in India

The Convenience of Using Online Bill Payment Apps in India: A Guide to Top Apps and Features

admin
December 31, 2023December 30, 2023 No Comments
Financial Potential

The Demat Revolution: A Beginners Guide to Unlocking Your Financial Potential

admin
November 28, 2023November 11, 2024 No Comments

Leave a Reply Cancel reply

You must be logged in to post a comment.

Recent Posts

  • Step-by-Step Guide to Using Baby Face Wash Properly
  • Why Every Business Needs an IT Managed Service Provider in Los Angeles
  • How to proceed with the choice of the best carbon black from the house of experts?
  • How to Train for the Everest Base Camp Trek: Advice from Sherpa Guides
  • Gain Expertise In Cloud Computing and DevOps: Build Scalable and Secure Systems
  • Marriage Food Catering in Abu Dhabi: A Blend of Tradition, Taste, and Luxury
  • Office Bites in Dubai: How Work Culture Is Changing the Way We Eat

Categories

  • Auto
  • Beauty
  • Business
  • Dental Care
  • Dental Clinic
  • Education
  • Entertainment
  • Fashion
  • Finance
  • Food
  • Gift
  • Health
  • Home Improvement
  • Law
  • Lifestyle
  • Loans
  • Real Estate
  • Security
  • Shopping
  • Smo
  • Society
  • Songs
  • Sports
  • Tech
  • Trading
  • Travel
  • Web Development

Recent Posts

baby face wash

Step-by-Step Guide to Using Baby Face Wash Properly

admin - Business
June 13, 2025 No Comments

Caring for a baby's skin is extremely important because soft,...

IT managed service provider in Los Angeles

Why Every Business Needs an IT Managed Service Provider in Los Angeles

May 23, 2025May 23, 2025
black carbon plastic

How to proceed with the choice of the best carbon black from the house of experts?

May 6, 2025




Recent Posts

  • Step-by-Step Guide to Using Baby Face Wash Properly
  • Why Every Business Needs an IT Managed Service Provider in Los Angeles
  • How to proceed with the choice of the best carbon black from the house of experts?
  • How to Train for the Everest Base Camp Trek: Advice from Sherpa Guides
  • Gain Expertise In Cloud Computing and DevOps: Build Scalable and Secure Systems

Categories

  • Auto
  • Beauty
  • Business
  • Dental Care
  • Dental Clinic
  • Education
  • Entertainment
  • Fashion
  • Finance
  • Food
  • Gift
  • Health
  • Home Improvement
  • Law
  • Lifestyle
  • Loans
  • Real Estate
  • Security
  • Shopping
  • Smo
  • Society
  • Songs
  • Sports
  • Tech
  • Trading
  • Travel
  • Web Development

Contact Us

Contact Us

Copyright 2018. All rights reserved | Theme: OMag by LilyTurf Themes