How to increase one's Home Loan eligibility??

by maintaining gud credit track record

For home loan there are two major things are considered by banks or NBFCs : - Location of property and Earnings of applicant. Every financial institution(bank or NBFC) has different criteria for considering the location(Area of property). Earning of applicant include past record of their employment or nature of business. The major work of credit officer is to predict the earning & repayment capacity of applicant to sanction the loan.

According to me and even though i am not from the banking sector, The easiest method available to increase one’s home loan eligibility is by taking home loans for the Maximum Tenure. So he will use his savings for repaying the loan in the form of equated monthly installments (EMI).  Here i have to give statistics to make you understand what i mean... may this will help you..

Now, let’s consider that the installments for a home loan of Rs 1 lakh come at an interest rate aroiund 12.5%. If the loan is taken for tenure of 15 years, the EMI calculated stands at Rs 1,232.50. For this data, his home loan eligibility will be 20.3 lakh.

However, it is possible for the same individual to increase his home loan eligibility by around Rs 2 lakh if he can extend his tenure to 20 years. Assuming the same rate of interest i.e. 12.5% and now 20 year tenure on Rs 1 lakh loan, the EMI turns out to be Rs 1,136. Consequently, the home loan eligibility comes to Rs 22 lakh. This surely increases one's home loan eligibility....What are the other factors...

Another important factor is Less information is as harmful as wrong information. almost every bank is offering a home loan with the repayment period of maximum 20 years, so it is better to carry out a research regarding the available home loan schemes and to study the market. It is not necessary that the first scheme being presented by a bank employee would be the best for an individual. Hence, always ask questions and enquire about the various schemes available with the bank, and then make the final call.

A good report card always helps.  It is highly advised by bankers that before going to purchase any bank loan, an individual should repay all the other pending outstanding loans. Any loan taken by an individual like car loans or personal loans, taken on any bank, needs to be paid up to date. This adds to the ability to repay of the individual and the lending bank takes a greater interest in issuing a home loan. Also, these days, any bounced cheque of any late payment, is not missed by banks. Hence, its important to be thorough with the repayments.