Understanding the Factors That Determine Your Housing Loan Eligibility in 2024
With each day passing by, the Indian Real Estate market out there is constantly evolving. To obtain a home loan in our country has become complex somehow with the rapid urbanization and evolving financial dynamics. However, with the onset of technology, such as the home loan EMI calculator, things have become much more accessible.
In India, owning a home is still a dream of many people and is often realized via housing loans. However, availing of this facility depends on certain factors that lenders consider at every step. As we enter 2024, understanding these determinants becomes essential for anyone aspiring to obtain a housing loan.
What exactly is housing loan eligibility? What factors determine it?
It basically means the eligibility criteria that institutions use to determine whether the potential borrower qualifies for a housing loan or not. There are many factors that come into play here, which tends to assess the borrower’s ability to repay the loan within the specified terms and conditions.
- Income and Employment Stability
As a potential borrower, you need to prove to your lender that you have a stable income source in order to repay the loan you will take from them. Certain factors, such as your monthly income, employment type which means whether you are salaried or self-employed, and the nature of your job or business, are taken into consideration.
- Initial Down Payment
It is the amount of money you initially pay. This shows your commitment and reduces the loan amount required. Therefore, the more amount you pay, the more it improves your overall eligibility.
- Credit Score
This magic number plays a crucial role in determining your housing loan eligibility, as lenders consider it quite important when evaluating your loan application initially. A good score (750 or above), clearly shows that you are responsibly handling your credit and repaying the loan on time. Therefore, keep it intact to unlock better loan offers in the long run.
- Term
It is the duration within which you assure the lender that you’ll pay back the home loan. If it is quite longer, then the Equated Monthly Instalments (EMIs) are also affordable, but on the other hand, they also increase the overall interest cost. Shorter terms result in higher EMIs but reduce the burden of interest. Choose wisely!
Which is the best application for a home loan, and what are its eligibility criteria?
One of the most trending applications for this purpose is ‘Bajaj Finserv’. It is super convenient and easy to use. With just a few taps, you can easily avail tons of financial instruments without going anywhere!
- Nationality- Indian citizen residing in India
- Age – Salaried applicant between 23-65 years, and self-employed between 23-75
- CIBIL Score- 725 or higher
- KYC documents
- Income proof
- Business proof
- Account statements for the last six months.
It is also an emi calculator app which offers this tool that you can use.
Conclusion
If you are planning to purchase your dream space, you need to understand everything in and out of it. It is essential for aspiring homebuyers in the market to address these factors in a proactive manner. This will definitely help them to stay in the favourable eyes of the lender.
