How to increase Home Loan eligibility?
There are various ways to increase your Home Loan eligibility.
- Improve CIBIL score
The Credit Information Bureau (India) Limited is a 3-digit score between 300 to 900 that determines your credit history score. The closer you get to the score of 900, the better is your credit rating. This credit report is collected from various institutions such as government bodies, collection agencies, banks, and Credit Card companies. Also, it takes about 18 to 36 months to obtain a satisfactory CIBIL score.
- Clear existing loans
Having existing EMI payments can make you less credible for a Home Loan. Therefore, it is essential to clear out your existing loan payments before you apply for a loan from a financial institution. Clearing previous loans on time will boost your credit score, giving you an added advantage. - Select a joint Home Loan
Applying for a joint Home Loan may provide you with additional support in case of a default. Also, applying with someone else may give you a better chance of getting your loan accepted due to a stronger combined credit score. In some cases, women applicants may have added benefits as compared to male applicants. Consider estimating using a reliable joint Home Loan Eligibility Calculator to get a detailed analysis of your eligibility.
Apply for a Home Loan and calculate your eligibility
It is best to get an estimate of your current eligibility before applying for a home loan from an institution. While it is possible to get a rough idea through manual calculations, it is best to use an online Home Loan EMI Eligibility Calculator to get an exact estimate of your eligibility. The major factors that determine the Home Loan eligibility of an individual include salary and age. Let us learn about the role of these factors in detail.
Home Loan eligibility based on salary
Your salary determines your ability to pay a part of your monthly income without compromising on your basic needs. Therefore, it is an important factor in determining your Home Loan eligibility. Also, your employment type signifies the consistency and stability of your income. However, note that a higher salary does not always imply better chances of loan approval.
For instance, a person with a salary of ₹50,000 may have a higher chance of getting approved as compared to another person who earns ₹1 lakh a month if the latter person has existing EMIs or financial liabilities.
Home Loan eligibility based on age
Age is a crucial factor in determining the eligibility of an individual to borrow loans.
Most lending institutions have a minimum age criteria of 18 or higher for applying for a Home Loan.
Younger applicants often get accepted for longer tenure loans, which may result in lower monthly costs with a higher overall interest rate. Whereas older applicants can manage shorter tenure loans with bigger installments due to their financial stability.
It is important to note that the impact of age on your loan eligibility varies depending upon the lending institute.
How to check Home Loan eligibility?
The easiest and most accurate way to calculate your Home Loan eligibility is to use online calculators. Axis Bank Housing Loan Eligibility Calculator allows you to get an accurate estimate of your eligibility without getting caught in lengthy calculations.
You just need to add basic information such as income, expenses, debts, and credit scores to get the result within seconds. Also, the Axis Bank Home Loan Eligibility Calculator considers all the relevant factors according to Axis Bank’s criteria, increasing its accuracy. It is advised to evaluate your financial situation and obtain a credit report before applying for a Home Loan.
