A home loan brings a wide selection of property within your reach. Only a well-established and best bank for home loans offers a completely digitised process for a faster TAT. You can qualify for loans up to ₹5 crores with a tenure of 30 years. Borrowers can also enjoy top-ups up to 100% at the same rate as that of a balance transfer. Salaried and self-employed customers have higher eligibility with seamless login and excellent staff support.
Getting the loan approved can be a cakewalk with a customer-friendly bank. Yet there are a few ways to boost your chances of getting the funds of your choice. Follow these tips.
Improve your CIBIL Score
The higher the score, the better are your approval chances. Ideally, a score of 700 and above is considered to be excellent. It assures the lender of your creditworthiness, that is, your ability to repay the loan on time. The simplest ways to increase the score are:
- Paying credit card dues and monthly instalments on time.
- Ensuring a low credit utilization ratio
- Keeping a check on the credit score and taking corrective steps, if needed.
Your seriousness in settling debts must reflect on your credit profile. This can increase the odds of home loan approval and fetch a lower interest rate too.
Check your Eligibility
Salaried and self-employed individuals must try to tick the eligibility checkboxes to avoid loan rejection. A reputed bank requests basic requirements in terms of age, minimum income, residence proof and tenure duration. For instance, a salaried person must have a monthly earning of at least ₹1.5 lakh per annum. They must be aged between 23 and 70 years only. Go to the bank’s website and see if you are able to fit into their criteria to increase your chances of qualifying for a home loan.
A long-term equal to more affordable EMIs. The lender is assured that you can pay right on time without defaulting. The borrower comes across as a low-risk customer who is less likely to accrue penalties. So, your home loan amount eligibility is automatically enhanced. Pick a loan term between 12 months to 360 months as per your repayment capabilities. But know that a longer tenure also means higher interests. So, talk to your financial advisor and chalk out a proper plan for a smooth borrowing experience.
Higher Down Payment
The best bank for home loans will finance 75%-90% of a property. The rest has to be paid from your pocket as a down payment. Try to bear a bigger amount and borrow a smaller loan value. It can help you get the approval without hiccups since lenders see no risk here. Further, you are less likely to pay a high interest which makes the overall process quite affordable. The EMIs are lowered as well. So, putting down a high down payment can be a smart idea to get the loan of your choice.
Putting these simple tips into action can help you qualify for a home loan. Use a housing loan EMI calculator to figure out the monthly payments beforehand. It can help you work out the finances well and clear them timely.