The home loan eligibility can be improved by sticking to certain principles such as payment of current loans, obtaining job stability, increasing loan tenure and acquiring a good CIBIL score. It is true that becoming eligible for home loan is a complex process. The lenders critically evaluate your income levels, assets and liabilities. They are very particular about the CIBIL score of the borrower. But there are certain measures by which the eligibility can be improved.
Now-a-days, it is common to see people going for home loans as the best option to purchase a house. Due to this increase in demand for home loans, banks have become particular with regard to granting home loans. You must present yourself clearly before the lending bank to become eligible for home loan.
Job stability
You should be stable in one job for at least a period of one to three years. If you are hopping from one job to another, then banks do not consider your home application favorable. Good income level and job stability will increase your eligibility.
Pay off all debts
Clear all your current credit card or personal loan repayments. It is not sufficient to clear only the loans. It must also reflect in your CIBIL score. Hence, after clearing your dues, close the loan accounts, obtain the loan closure certificate and check its update in the credit score. This will surely help you in enhancing your eligibility.
Steady and variable income
You must always disclose your variable income that your receive from your job to the lending bank. If this is reflected in your application details, the bank feels that you are in a good position to repay the loan amount in regular installments. This also goes with your rental income. You must lease out your vacant and idle houses. The rent earned on these houses will be treated as additional income. It will affect your loan eligibility.
Increase in tenure:
You can increase your home loan eligibility by increasing the tenure of loan. Generally, banks do not provide more than 25 years of tenure. Hence, you must set something within this.
Joint home loan application
If your spouse is earning well, then you must prefer to make a joint application for home loan. The bank understands that the loan repayment will be shared by both. This will obviously increase your loan eligibility.
CIBIL report
You must invest your time in acquiring CIBIL score and report. Work on the loopholes. Try to remove the errors and get a clean CIBIL score and report. ‘A good CIBIL report largely increases the eligibility,’ this has become a mission statement.
Set-up loans
These types of loans are provided to professionals such as doctors and Chartered Accountants. In the initial years, the EMIs are lower and increase gradually with the loan repayment process.
Thus, systematic financial planning is essential for a borrower to increase loan eligibility. The borrower must also research about lenders, their interest rates and schemes, if any. Even you have the right to choose an appropriate lender for yourself according to your eligibility.
