Banks have specific conditions on home loan eligibility. There are multiple factors which come into effect when a customer applies for a housing loan. A housing loan is a secured product which takes customer age, employment and property into consideration. The min age for applying a housing loan is 21 years amd maximum cap for salaried private sector and public sector is 58 years and for central Govt. employees it is 60 years and for self employed people it is 65 years. Customer should have a min of 2 years continuous work experience. The min annual salary or Gross Earnings should be 2.4 lacks. People who have past credit history with satisfactory repayment track will have a added advantage. Customers with card settlements and loan over dues are straightly gets rejected for a home loan. Property should have clear and marketable title with all relevant documents in original. Banks will verify all the details mentioned in the application form and issue the home loan post satisfactory verification of details mentioned in the housing loan application form.
Usually customers look for maximum eligibility in a home loan to decrease the margin money which he/she pays from his / her end. As the banks are looking at the track and previous financial history of customer very strictly he / she should be aware of the points which banks usually consider in funding for any home loan. To get maximum eligibility the customer should take care of the below points.
Income and Liabilities:
- Customer should close all the liabilities which he/she is having in his/her bank statements and payslips if possible.
- Please mention the liabilities which you want to close to avail this loan.
- Mention the balance tenure of the loans which are having repayment period more than 12 months and which you don’t want to close.
- Please mention the loans which are having repayment period less than 12 months compulsorily.
- Submits required proofs for your additional income like bonuses, reimbursement and rental incomes etc.
Credit History is the most important thing by referring which banks are giving loans to customer. If the customer is having any discrepancies in his/her credit history then banks are not taking deviations or even not considering their application for any loan. So it is always suggested to the customers to take care of the below things to avoid these issues which will occur in CIBIL report through which bank looks into your credit history.
- Please make sure all your loan payments are going with out any bounces.
- Please check your credit cards and their payments.
- Convert any high value transaction in to EMI’s if you can’t make the payment in time before statement generation on your credit card.
- Avoid making late payments in your credit card or loans accounts which attract late payment fees and in turn spoil your credit history.
- Please clear all your dues and over dues before applying for any loan.
- Transfer your balances to another card if you can make payment with in a period of 90 days for a interest free period.
- If you have made any credit card settlements then keep all the receipts’ of payments made towards those cards for future references.
- Don’t issue any cheques if you do not have sufficient funds in your account.
- Calculate your loan amortization in terms of EMI and Principal components of the loan.