Factors that can Impact your Home Loan Eligibility

If you're planning to apply home loan and wish to opt for a home loan, remember that there are various parameters that could affect your eligibility.

The following ways through which banks or lending institutions decide whether or not you will be able to repay the sanctioned amount within the stipulated time period.

Financial Fitness of Loan Candidate -

Salaried or business person current income and how much more likely to earn in the future has a huge impact on the amount your lender decides to disburse as loan.

Age Criteria for Home Loan -  

This is one of the most important factors because age indicates the tenure of your loan. The younger the applicant is there is more probability of getting a loan. Most banks and HFCs allow a maximum tenure of up to 30 years or until the age of retirement from the day of sanction.

Credit Score Criteria - The credit scores in the range of 700-750 are generally regarded as fairly good and scores above 750 are considered to be excellent. Applicants with good credit score are preferred by banks. Excessive use of credit cards and late payments could pull down your score, making it difficult for you to avail loans.

Financial Liability - If you have existing liabilities such as a car loan or huge credit card debt. Banks or lending institutions are wary of disbursing loans to such individuals because it could lead to default from the borrower’s end in case, he is unable to bear the burden of another loan.  

Click here to know more about the Home Loan Eligibility Criteria.