Multiple independent agencies report that the home loan sector in India may grow by around 17% in the financial year 2019-2020. Reports also show that the largest share of borrowers are first-time home buyers and that the highest demand for housing loans will be concentrated to the budget housing sector.
At the moment, there are several financial institutions which offer home loans in India at attractive interest rates. If you are planning to avail such a loan soon, you must increase your creditworthiness to ensure a successful loan application.
There are several tips to get your home loan approved instantly. However, for easy approval, you have to meet some basic housing loan eligibility criteria and pointers for a quick approval.
Improve your Home Loan Eligibility Easily
Before you avail a loan, you must determine how much financing you actually need. For that, you can use a loan eligibility calculator in India to plan your future finances and meet EMI payments on time.
Follow these 4 ways to strengthen your chances of availing housing finance in the form of a home loan.
- Repay all existing loans: If you have any outstanding loans, it is best to settle them before you apply for a house loan. Once you start repaying a loan, the EMI burden may prove to be too much to handle especially if you have previous debts. It may ruin your financial measures and long-term plans. To check how much amount you need to keep aside every month to repay the home loan, you can use a house loan calculator.
- Improve your CIBIL score: Your CIBIL score must remain above 750 at all times. When you maintain a high CIBIL score over a period of time, financial institutions recognise your creditworthiness and your value as a potential asset. This is one of the ways how a good credit score may determine your home loan EMIs and interest rates.
- Make your spouse a co-applicant: If you add your spouse as the co-applicant, then you are eligible for a higher loan amount as a joint home loan. The lender will also consider your spouse’s income to determine the final LTV.
You can use a housing loan eligibility calculator to have a better idea of the prospects with a joint home loan application.
- Consider availing top up loans: Top up loan is an excellent option for those who do not have high income. Since such applicants cannot afford to repay large amounts of EMIs every month, they can consider this customised loan variant. When you avail top-up loans, you have to pay lower EMIs in the first few years, thus giving you ample time to plan your finances. After a certain period, the EMI amount gradually increases. By that time, financial institutions expect that your financial stability will be high.
Before you apply for a home loan, ensure you use a home loan calculator in India. It will help you determine how well you are positioned financially and will also assist you plan your finances for the future.