How Your Home Loan Eligibility is Calculated

By | August 20, 2015

Tips for enhancing your loan eligibility

Adding co-borrowers: You can add co-borrowers to enhance loan eligibility. A co-borrower can be your spouse, children, parents (if you are the only child or get NOC from your siblings) or a sibling (if you have taken NOC from your siblings).

Opting for a higher tenure: The longer your loan tenure, the more your eligibility. This is because your EMI outflow is lesser at a long tenure.

Options like step-up repayment: Those who are expecting hike in salary after a couple of years can use options like step-up repayment, where they pay lesser EMI initially and gradually increase it in proportion with the hike in salary.

Closing other unwanted loans: Closing other unwanted loans can considerably increase your loan eligibility, as we have seen Shyam’s case.

Adding perks and passive income:  If you have any passive income, like a rental income, incentives, or income from a part-time job, apart from your salary, providing proof may help the bank consider a loan. As long as your passive income is regular.

Relationship with the bank: Your relationship with the bank is a decisive factor for your loan eligibility. If you have a long standing relationship with the bank, like having an FD, an old savings account, or a promptly paid loan, they won’t mind going for 60% FOIR.

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