Home Loans Eligibility
There are certain factors to get and opted amount for buying a home which are very important to decide your loan eligibiligy.So please have a look:
Monthly Income
You monthly income decide your capacity for loan repayment on timely manner.For example if you are salaried then your monthly salary and if you are self-employed, thenyour annual turn over plays a vital role to calculate the maximum eligibility of your home loan.
Salaried: Based on individual's net income , bank decides home loan upto 60% of net salary. For example, you get take-home salary after all deductions in your hand is 50,000 then you are eligible for getting home loan around 30 Lakhs.
Other Loan EMI
If you have taken any other loan for example personal loan or credit card loan or other loan then the monthly repayment of your existing loan will be deducted from your income and loan eligibility will be calculated after deductions of the EMIs that you are paying.
Property Attributes:
Banks can provide maximum 85% on the value of your property.So if you are purchasing a property of 50Lakh then maximum 42.5 Lakhs will be considered for the home loan.
Banks also consider other the minimum area requirements for a flat which may be carpet area of built-up area. The banks also consider the age of the property, the location, reputation of the builder if it's a builder property. The banks also do a minute analysis to check whether the property is disputed or clear, whether the bank is free from any encumbrances, etc. and based on that the loan will be granted.
Duration of Loan (Years)-Tenure
Tenure is the no. of years when you are granted to repay your home loan which may vary on various factors like applicant's age etc.Normally the tenure can be from minimum 15years to 20 years.When you are choosing tenure then always keep in mind that lower your tenure will increase your monthly EMI and vice-versa.Also longer the tenure, interest paid will be higher.
Interest Rate (in percentage)
Before taking a home loan it is always important to compare the interest rate of the home loan so in advance you should check the conditions and home loan interest.A lower home loan interest can also decrease your EMI therefore increase your eligible Loan Amount.
EMI
EMI stands for equally monthly installment; you need to pay a particular amount for the Home loan that you have taken.
Eligible Loan Amount
The net loan amount for which you are eligible for your Home loan is said as Eligible Loan Amount. The loan amount that a Bank can sanction you.
Credit History
The credit history of an individual plays a really crucial role in deciding the amount of the loan. This report is generated by the credit card companies regarding the outstanding credit history of an individual. On the basis of this information the individual is given a credit score.
Age
Age also plays a crucial role in determining the eligibility for a home loan. One has to attain a minimum age of 21 to apply for a loan. The minimum age requirement may be different for different lending institution. The maximum age may vary from 58 to 65 years depending on the income source of the individual. The age also determines the tenure and EMI of the loan.
Co-applicant
If you want to increase the eligibility for having a loan you can have a co-borrower and in this way you can enhance your eligible income. Applying in the category of co-borrower increases your chances of loan approval without much complications. Although, banks allow only certain relationships to become the co-applicant. In this category friends and relatives who are not in direct blood relation are not eligible.