Housing Loan Eligibility: What It Means and How to Improve It.
Posted on April 30th, 2020
- Applicants should be an Indian citizen.
- Age of an applicant depends on his/her source of income. Salaried individuals must be within the age bracket of 25 and 62 years, while self-employed individuals can be aged between 28 and 70 years. Notably, it is advisable to apply for a home loan in the early stage of a borrower’s career. This allows them to avail a longer tenor for repayment, reducing their monthly financial burden. Additionally, longer tenor of home loan repayment usually leads to lower interest rates since such applicants are less liable to default on payments.
- CIBIL score is a vital criteria, which denotes associated credit risk with a borrower. Typically, scores above 750 are desirable. Consequently, potential borrowers should increase their CIBIL score over time. One can do this by timely repaying existing debts, maintaining old credit cards without using its full credit limit, checking credit reports, etc. CIBIL score also influences the rate of interest offered to a borrower.
- Value of the hypothecated property is another vital criteria for housing loan eligibility. Financial institutions take into account the age of a property, its size, location, etc. while approving a loan application.