Buying a home is a major decision in your life, and its importance even further goes up when you are availing a Home Loan for the same.
Yes, although a Housing Loan is a major financial tool that’s available to salaried class as well as business owners, only a few qualify when it comes to the Home Loan eligibility criteria. Want to check your Housing Loan eligibility instantly? Go to a reputed lender’s website and avail a free Home Loan eligibility calculator to know more?
Even reputed online lenders offer a Housing Loan to borrowers with good House Loan eligibility only. So, what are the factors that affect your Home Loan eligibility and how to take care of them, let’s have a look!
Before going any further, let’s see some standard Home Loan eligibility criterions.
Home Loan eligibility criterions
- A borrower should be an Indian national
- Aged between 25-58 years
- Salaried class individual with a working expertise of 3 years or more
4 factors that can influence your Home Loan eligibility
- CIBIL Score
The first thing that can affect your Housing Loan eligibility is the CIBIL or the credit score. Yes, lenders see if you have the required creditworthiness or not while awarding you a Housing Loan. The first criterion of creditworthiness is nothing but having a good CIBIL score. If you have a credit score which reads 750 or more, it can boost your House Loan eligibility and fasten the Home Loan application process.
- Credit history
Lenders also assess if you are a responsible borrower with a clean repayment history. Yes, if you have been able to repay your entire current loan EMIs, credit card outstanding and more, a lender may consider you a safe bet to provide you a Home Loan.
- Existing debts
If you want to boost your housing loan eligibility, you should try to clear your entire current debts. Also, make sure not to close an old credit card account which has a positive repayment record. Why? It may help in enhancing your eligibility for Home Loan and lenders may consider you eligible to pass off the loan.
- Take care of your co-applicants portfolio
If you are going to take up a Home Loan jointly, you should take care of the profile of your co-borrower. Why? It’s because a co-applicant should also possess a good credit history, a higher CIBIL score, clear repayment history to become eligible.
Also, sometimes, even if you don’t have a good creditworthiness, you can benefit from a co-applicant financial profile and get your Home Loan approved.
The Bottom Line
Are you willing to take out a House Loan shortly to live in your own nest and want to say goodbye to your rented apartments and the agony landlord aunt with so many objections? Take care of all the points as mentioned-above and be on your way to enhanced Home Loan eligibility.
You don’t have to go far to check your Home Loan eligibility! Simply go to a lender’s website, use a Home Loan eligibility calculator and know if you are eligible or not. If you don’t see the eligibility yet, work on the above points, improve it and again try after a few months. All the best!