If you have a home loan to apply for, you need to be eligible for it.
If you are eligible for it, a lender may approve your home loan application faster and at a lower rate. In turn, it may help you manage lower EMIs.
But, what is meant by the home loan eligibility and what factors can increase it?
Get to know about it in this post!
What is meant by home loan eligibility?
The home loan eligibility means if you are the right candidate who can support timely EMIs over the tenor or not.
Lenders have many parameters to determine your home loan eligibility. They are your CIBIL score, employment and income history, debt to income ratio and others.
It is possible to know the exact amount you are eligible for using an online home loan eligibility calculator.
It is also possible to increase your home loan eligibility following a few tips.
How to increase your home loan eligibility?
Maintaining a credit score of 750 or more
The first thing to increase your home loan eligibility is to maintain a credit score of 750 or more. You can do that by repaying your debts on time. This way, you can also enjoy a lower home loan interest charge.
Going for a longer tenor
Another way to boost your home loan eligibility is going for a longer tenor. A longer tenor comes with a lower EMI, but that increases the overall interest costs. Paying a smaller EMI each month is possible to do. And it means defaults chances are less.
Applying for a joint home loan
You can also enhance your home loan eligibility by applying for a joint home loan. It will increase your borrowable amount to buy a home of your choice. It also helps both applicants enjoy tax benefits of up to Rs.2 lakh if both are co-owners.
Start implementing these tips and see your home loan eligibility enhanced to get a significant amount at a lower rate.
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