Loan Process Guides

Tips to increase your home loan eligibility

Tips to increase your home loan eligibility

Home loan is the best option that you can think of if you intend to buy a new house but are not being able to save up the entire amount. Applying for a home loan gives you the flexibility to buy a house of your choice by having a stipulated budget as per your capability of paying the interests for the same.

Almost all banks and financial service providers have the option of home loans, where you can apply by following some simple steps and the loan gets processed:

Eligibility criteria for the loan-

  1. The age limit of the applicant needs to be between 21-65 years (for salaried) and 21-70 years (for self-employed). Few banks allow the lower age to be 18 years as well.
  2. The work experience that is considered is minimum of 2 years (for salaried) and 3 years (for self-employed)

Listed below are some of the ways that will help you in increasing your home loan eligibility:

  1. Adding a co-applicant

A co-applicant is one who applies for a home loan jointly along with the borrower so as to help in supplementing the income of the main applicant thus making him more eligible for the loan. This co-applicant can either be a blood relative or a family member

  1. Repay your outstanding loans

It is important that you have repaid any outstanding loan that you may have so that your eligibility for the home loan is ensured & increased further.

  1. Declare additional income sources, if any

If you have any additional source of income (like rent, bonus, dividend, agriculture income) other than the mentioned one in your application, you should inform about this as well and provide documentary proof of the additional income (Like ITR, Bank Statement, Rent Agreement, etc.) because this will ensure the fact that one or the other source will be open for repayment of the loan without any fault. Additional income is also considered while calculating your eligibility. For example, Bonus, incentives, commissions in case of salaried customer plays a vital role in his enhanced eligibility. 

  1. Opt for a higher tenure of loan

When you opt for a higher duration of the loan, then automatically you increase the chances of repayment as the amount of EMI is then reduced and will be easy for you to pay. So here you indirectly increase the eligibility for yourself.

  1. Keep your credit score good

The credit score measures an individual’s ability to pay back the loan that he/ she has taken. When you pay your debts in time you are able to achieve a higher credit score. If someone has taken too many loans, they may also

have a low credit. A high credit score increases your chances of being eligible to get a home loan.

If you want to check whether you are eligible for a home loan or not, then you can very well use an online calculator for checking your eligibility. Hero Housing Finance has come up with a home loan eligibility calculator which helps you in checking the maximum amount you are eligible for.  This is done by taking into consideration a number of factors like age, income, other income (if any),financial status, repayment capacity, credit score and similar other things.