Are you getting problems in a home loan approval? Are you eligible for a loan? It is not a cup of tea to get a loan. You need to do check whether you are eligible or not. It depends on how much you need and will you be able to repay.
Here are some factors to be considered before you apply for a home loan.
Factors That May Help:
- Good repayment history
- Credit score more than 750
- Stable job
- No loan dues
Things where you can work:
- Improve your CIBIL score: Your CIBIL sore has an important role in deciding your loan amount and approval. Above 750 is considered a good credit score. As per the CIBIL, 79% of loans are approved with CIBIL score of more than 750. Good CIBIL score leads to a better interest rate.
- Prepay your existing loan: If you have any existing loan then try to pre-pay that loan, before you apply for a new one. In this case, a lender may think that you already have a loan and may reduce your loan amount or may give a loan on a higher interest rate.
- Opt for longer tenure: If you increase your loan tenure then there is a possibility that your monthly burden will be a little low. And assurance of paying it back will be more. So the possibility of on-time payment increases.
- Consider step-up loans: This is the better option whose monthly salary is less and finds difficult to repay. In step-up loan lenders offers loan on lower EMIs in initial years and increases when the borrower becomes financially strong.
- Add another source of income: By adding another source of income may help you to get sanctioned your loan. It can be rental income, part-time business etc.