The growing number of Housing Finance Companies in India has also made competition in the housing finance market severe. As a result, the availability of home loans has become considerably easier and time-saving.
Still, financial intuitions prefer applicants who fulfill all the home loan eligibility criteria and reduce lending risks.
Few of the steps to improve eligibility criteria are–
Increase the credit score
The preferable credit score for a home loan is 750. Applicants with a high score will receive prompt approval. They can also avail lower rates than other customers.
Show and adequate income
A satisfactory income is significantly desirable by lenders as home loan EMIs tend to be high. HFCs also look for job stability and occupation of an applicant.
Apply early
Generally, the age bracket for a home loan is 23 and 70 years. Lenders prefer individuals who are young. Such borrowers have lower chances of defaulting as they have prolonged years of service remaining.
Reduce existing liabilities
Applicants should ensure that their existing liabilities along with the home loan EMI do not exceed more than 50% of their income. They can use an EMI calculator to find the monthly installments and assess the impact on their monthly budget before applying.
The lower the fixed monthly obligations, the higher are the chances of securing a Bajaj Finserv home loan. They will also be able to avail a larger loan by reducing their liabilities.
Customers can use a home loan eligibility calculator to check the amount they can avail based on their income and existing debts.
Individuals will be able to avail a home loan comfortably by fulfilling these few steps to improve their eligibility.
