In India, many people apply for the home loan facility to get the funds to move into their long-craved dream homes. But not everyone’s home loan application gets approved.
If you are also facing the same issue, then you can follow a few tips to improve your home loan eligibility. Read on and know more now!
Keep a robust cibil score
So what if the home loan is a secured option? Lenders do consider your credit score as the primary home loan eligibility criteria. It showcases if you can repay the loan EMIs on time or not. A credit score of 750 or more is considered best by lenders. You can do that by paying off your existing loan EMIs, and other outlays on time.
If you think that you may be short of the home loan eligibility, then you can enhance it by adding a co-applicant. If your co-applicant is eligible, then you can borrow a large amount. If your co-applicant is a woman, then you can also get some discount on interest charges and save big.
Go for a longer tenure
Choosing a longer tenure will help you pay the lower home loan EMIs. It means that you will be less likely to make defaults and your loan could be approved. Yes, you may have to deal with higher interest charges. But you can make up for it by making time to time prepayment during the tenure and reduce your principal and interest outgo.
Your home loan eligibility may increase if you declare your additional sources of income.
It is also suggested to use the home loan eligibility calculator on a creditor’s platform and check the exact EMI amount payable over the tenure.
