Home Loan Tips – How To Improve Eligibility For Home Loan

The past few months have witnessed tremendous rise in home loan interest rate caused by reasons like increasing demand in residential properties in India. No doubt, with such mounting interest rate, the home loan eligibility has been affected to a larger extent. Consequently, the trend has forced prospective loan borrowers to re-examine their options so as to acquire new eligibility criteria for home loan or housing finance in India.

Repayment duration or tenure of a housing finance is a way to judge eligibility criteria. For this, if you avail a loan at maximum tenure level, your possible premium outgo will be decreased to a greater extent. For instance, if a monthly income of a salaried individual is around Rs 60000 and his expenditure is around Rs 35000, then his eligibility will be calculated on the basis of Rs 60000-Rs 35000 = Rs 25000. On this very saving of Rs 25000, his home loan eligibility is determined. Undoubtedly, the more income and less expenditure, the better chance is to improve your eligibility. And the very amount of saving will be used to repay the loan borrowed.

As said before, the tenure of a home loan is determining factor to improve your eligibility. For instance, suppose you are taking home loan of Rs 1 lac at 12.5% interest rate in 15 yrs of repayment duration. In that case, your possible emi will be Rs 1232.5. According to the data, your possible eligibility for the housing finance will be Rs 20.3 lacs. Now, as a borrower, you can improve eligibility factor upto Rs 2 lacs, if you opt for housing finance at extended tenure of 20 yrs with same rate of interest and loan amount. On the calculation, your calculated emi will be around Rs 1136. This way, your eligibility becomes upto Rs 22 lacs.

One of the other ways to improve your eligibility for proposed housing finance is to never go for any offer that seems attractive, on the face of it. There is no dearth of lenders who offer housing finance at maximum repayment duration of 20 yrs. As a borrower, you should go for the loan only after meticulously searching and researching the market trend in order to get to know what other lenders offer on their projected housing finance.

Remember that interest rate is one of the crucial factors that affect your eligibility on housing loan. Interest rates like floating and fixed are available on the housing loan. You have to weigh your option wisely as either of the loans will affect your premium accordingly. campare and apply SBI home loan and Punjab national bank home loan in India

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