Now these days the banks have come up with certain rules and regulation regarding their system of providing loans to the individual who are investing and buying the property. There has been a set criterion for an individual to fulfill before he or she applies to a bank for a loan. This eligibility comprises of the maximum amount which an individual can avail. This eligibility may vary case per case depending on various factors.
A fair CIBIL Score
Credit Information Bureau India Limited (CIBIL) founded in the 2002 is an effective body that has assesses the credit worthiness of an individual. The assessment is done by collecting the information of the individual’s loan and credit card payments from all the banks on a regular month by month basis. It is one of the most premier factors as it determines the individual’s ability and the financial potential to repay the loan amount in due course of time. The major aim of the CIBIL is to track the financial transactions and also the detailed taking of how well an individual maintains his or her other accounts. The CIBIL also tracks all kinds of transaction made through different banks. They also keep an eye on skipped credit card payments and cheque bounces and the source of the property from where you are buying. All the banks in India require a clearance certificate from the CIBIL whenever an individual applies for a home loan.
It is always advisable to add a co- applicant of home loan. This can be beneficial in cases where an individual wants to avail higher loan amounts. This could be done by adding your parents and spouse name as a co- applicant. This not only adds value but also increases overall eligibility of an applicant to go for a huge amount of home loan. Such applications are favored as the loan repayment commitment is shared among people lowering the overall burden also reducing the risk.
The microscopic analysis by CIBIL is gauged between the ranges of 300 to 900. A fair score of 700 or more makes it much easier for a person to be eligible to apply for a home loan at very attractive interest rates.
Age and Income criteria
The income potential of an individual is determined by the Age, playing an essential role in determining the loan tenure. An increased loan tenure say from about 15 to 20 years can also increase the individual’s eligibility to secure a loan. Age factor is considered in the perspective of the repayment of home loan. Several other factors like the employment type, salary structure and other sources of income are also considered to define the eligibility criteria.
A strong current and past employment history
A proper and accountable employment history will help you to get a housing loan easily but whereas as a questionable employment background and history might not work out when you go on applying for a housing loan. Banks determine the loan eligibility based on the net income depending upon the income tax returns. Well employed and salaried professionals are considered potential enough to repay their loans. The self- employed individuals have a rear chance to get eligible for getting a home loan.
Determining a CO-Applicant
Duration for the loan approval and the document checklist
After the required documents are collected, duration of about 3 to 15 working days is required to get an approval over the home loan. This duration can vary from bank to ban as per their operational timings.
- Identity Proof
- Address Proof
- Proof Of Income
- Age Proof
- Educational Qualifications
- Financial and Property details
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