Are You Eligible For A Home Loan? Find Out Here

Home Loan from the bank or a housing finance institute is the most common practice for getting a house in India. And banks are eager to offer loans for housing to an eligible Indian.

Financial institutes and lenders offer Home Loans for various purposes which include:

A loan taken against a property you already own is known as a mortgage loan and these types of loans are usually known as a loan against property. Additionally note that in India, a bank usually finances 85% of the market value of the property in the city. First, you need to be follow eligibility criteria for Home Loan for getting instant approval from bank/NBFC.

There are some of the things banks require to process a Home Loan request:

Employment Details: Employment record, salary slips, work experience details, and TDS certificate are some of the things a bank looks into in order to assess if a person is eligible for the loan. Proof of business address may be required for non-salaried individuals.

The minimum salary required to apply for a Home Loan in Delhi is around INR 30,000 with the minimum value of the property as INR 30 Lakhs (This amount varies for different banks).

Bank Account Statements: Some banks may require the applicant’s bank account statement for the last 6 months or more.

Identity/ Address Proof: Documents required would include one or more of the following: Voter’s ID card / Driving license / Aadhaar card / PAN card

But besides these, the credit score plays a crucial role in getting you the Home Loan. CIBIL is the first ever credit bureau of India, and the company help collects a record of each individual or company or organization. CIBIL is licensed by the RBI and governed by the Credit Information Companies Regulation Act of 2005.

The House Loan company will always check your credit score after you apply for a Home Loan. If the credit score is lower than expected by the bank, your application will be rejected, but if the score is high, and meets the bank’s criteria, then the Home Loan company will proceed with your application for further documentations and Home Loan Scheduling.

Some important factors that impact the credit score of the individual are:

You can improve your credit scores by following some of these steps:

A good credit score can prove invaluable in terms of getting your Housing Loan approved and also helping you get a good Home Loan offer. It is, therefore, advisable to improve on your credit score before applying for a Home Loan.

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