You live in the iconic city, Hyderabad and wants to purchase your dream home with the funding option of the Home Loan facility! You applied to leading banks and non-banking finance companies (NBFCs) and were shocked to receive rejections.
Won’t your world of hopes to live in your own home would come crashing down? Yes, it would, and that’s where considering some of the Home Loan eligibility factors matters!
Yes, before you are awarded a Home Loan in Hyderabad or any other city, the lender wants to ensure that you have a strong eligibility. Having an eligibility means that you can easily manage and repay the loan within a tenor.
There are factors that comprise loan eligibility such as your income, age, CIBIL Score, repayment and employment history, existing debts, down payment and more.
Let’s list out some of the major Home Loan eligibility factors including the income of the borrower while applying for Housing loan in Hyderabad.
Home Loans in Hyderabad Eligibility Factors
1. Your CIBIL Score
The first thing that a lender will see while processing your Home Loan application is your Credit or the CIBIL Score. The CIBIL Score proves your creditworthiness as it details the lender about your repayment capacity and beyond. You can get a Home Loan if your Credit Score reads 750+ or more out of 900. You can improve your score by paying all bills and existing loan EMIs on time.
2. Your Age
The number of workable years you have left, you are more than eligible for the housing loan. Yes, lenders consider borrowers who are young and have work workable years left while awarding the loan. It is because younger people have more working years left which means that the chances of their repaying the loan enhances.
3. Your Income
How much you are earning is another vital eligibility factor to consider! Lenders will assess your expected loan EMI to NMI (net monthly income) ratio. It is your take-home income minus all the deductions. Always know that lenders may deduct the bonus based payments, other EMIs that you are paying and taxes. Most lenders assume that one is left with 35-50 percent income on which you will pay off the Home Loan EMI. Based on the Home Loan interest, and tenor, lenders do a reserve calculation to determine if your income will allow repaying the loan EMIs.
4. Work Experience
Lenders like to sanction Home Loans to such borrowers with a consistent employment history than to those who are job hoppers. Lenders may want you to have at least 3-5 years of work expertise to trust you being eligible for a Home Loan repayment management. Thus, ensure to have a continued work experience if you are looking to apply for Home Loans in Hyderabad or elsewhere.
5. Repayment History and Existing Debt Burden
If you have not managed to pay your previous loans on time and if there are many debts on your head, lenders will consider you as a risk while considering your request. Yes, having too many debts means a large part of your income goes towards those EMIs, and you won’t be able to manage one more EMI. Hence, lenders reject the loan application of such prospective borrowers.
The Bottom Line
Other than considering the discussed Home Loan eligibility factors, you can also use the eligibility calculator available at a lender’s website. The tool gives you an exact amount that you may avail as a Home Loan once you enter details concerning age, income, desired amount and more.
Now that you are aware of the eligibility factors, you can apply for Home Loans in Hyderabad online after improving or considering all factors. Happy Home Loans!
By Lucia Adams
who is a professional writer and blogger.