Factors that affect home loan eligibility
In the current era, where real estate in India is on a boom, purchasing a dream house is not possible without the help of a home loan. Long gone are the days when availing a loan meant several rounds to the bank. Nowadays, if you have an internet-enabled smartphone, one home credit instant loan app does everything for you.
Moreover, another reason people go for a home loan is that they don’t consider it a wise decision to go all in at once while purchasing their dream home. This leads to financial instability and disrupts the entire flow of the individual.
What is a home loan?
As the term suggests, it is a type of loan used to finance a house. It is secured against the property and the borrower of the loan makes repayments with interest over a fixed period of time.
So, basically, the borrower pays a portion of the principal amount and interest through monthly instalments which are known as EMIs (Equated Monthly Instalments). Lastly, property ownership is gained after the loan tenure ends.
What is housing loan eligibility?
It is a set of criteria basis where a financial institution/bank assesses whether the borrower is creditworthy or not to avail and repay a loan. The primary factors here are income, repayment capacity, age, credit score etc, of the borrower.
What are the factors that affect it?
From credit history to employment status, several factors affect eligibility.
● Credit History
This factor helps the lender to have a reference point to use while analyzing credit conduct. So, good credit history is always favourable.
● Employment status
If you are employed with a reputed organization or are self-employed with a stable source of income, it increases your credibility. However, instability decreases the chances of getting a loan.
A home loan doesn’t require any collateral. Therefore, banks need to know that you earn a good amount of money each month.
If you are young, you are more likely to get a home loan. This is because financial institutions look for borrowers who can repay the loan satisfactorily before retirement age.
Which home credit instant loan app is the best?
Bajaj Finserv. Without any doubt. I’ll share my personal experience here as I got lucky here. One of my old associates who works in this company helped me to get my eligibility checked and offered a home loan at a suitable rate of interest.
Believe me, I never thought that getting this type of loan without literally going anywhere would be so easy. Just a few taps and my application was sent and approved within some time.
(Disclaimer: This content is not promotional.)
Tons of factors are to be considered before availing home loan. So, therefore, getting a loan is all about checking your housing loan eligibility first.