Today, a majority of Indians who are willing to buy their own home can't do it without taking a home loan. That said, not all of them get what they want. Getting approved for a home loan is one of the biggest hurdle in this process. Home loan eligibility is subject to a lot of factors a lender considers such as the ones mentioned below.
Property's Market Value: The first and foremost factor considered is your property’s market value. As it happens in most housing loans, banks and NBFCs finance up to an average of 80% of property’s market value. Thus, the market value of purchased property plays a crucial role in deciding your loan eligibility.
Your Chances of Defaulting: A lender will also assess your repayment abilities to determine the chances of you defaulting on loan EMIs. This in return would help determine the risk factor for lender and the applicable interest rates.
Your Credit History & Your Financial Worth: Moving on, lenders will also check your credit history and financial worth in order to determine the risk factor. Risk factor for a lender should be lower in order for them to approve a loan application and offer the best deals to a borrower.
Relationship with Bank: Lastly, your relationship with the bank would also play a crucial role in deciding whether you’re getting approved for a loan or not.
Bottom Line: Your CIBIL score, if in good state, would play a crucial role in getting your loan application approved.
Property's Market Value: The first and foremost factor considered is your property’s market value. As it happens in most housing loans, banks and NBFCs finance up to an average of 80% of property’s market value. Thus, the market value of purchased property plays a crucial role in deciding your loan eligibility.
Your Chances of Defaulting: A lender will also assess your repayment abilities to determine the chances of you defaulting on loan EMIs. This in return would help determine the risk factor for lender and the applicable interest rates.
Your Credit History & Your Financial Worth: Moving on, lenders will also check your credit history and financial worth in order to determine the risk factor. Risk factor for a lender should be lower in order for them to approve a loan application and offer the best deals to a borrower.
Relationship with Bank: Lastly, your relationship with the bank would also play a crucial role in deciding whether you’re getting approved for a loan or not.
Read Also: Aspects that Lender Consider Before Sanctioning your Home Loan
Bottom Line: Your CIBIL score, if in good state, would play a crucial role in getting your loan application approved.
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