This housing loan credit segment is expected to grow by up to 19% in the current fiscal year. An increase in affordability of house purchase for first-time home buyers combined with rate cuts by the RBI has made availing a home loan convenient.
Real estate market statistics
- Current contribution to GDP – 67%.
- Private equity investments in Indian real estate – $3 billion.
- Estimated market size of real estate sector by 2025 – $650 billion.
The overall growth of housing loans in the Indian financial market indicates the growing popularity of these credits. Lenders offering these loans with attractive features and benefits further support this expansion.
However, they use specific criteria to determine your housing loan eligibility. You can also utilise a housing loan eligibility calculator to check the loan amount you are eligible for.
You must consider all the factors which may affect your housing loan eligibility before applying. Complying with these factors increases the chances of loan approval.
Factors that lenders consider to determine eligibility for housing loan:
1. Your income and work experience
Applicant’s income is a primary consideration lenders make when checking a person’s eligibility to sanction home loans. Hence, when you look for home loan eligibility criteria, income and experience of the individual are among the requirements you must match.
It helps the lender understand whether your income is sufficient to make repayments in time. Based on this, they decide the loan amount to sanction.
2. Your age
When determining the tenor for your loan, lenders consider age as an essential factor. While home loan tenor may extend up to 20 years, a person nearing retirement may not receive such a long tenor as a person starting his/her career.
It is because a person in the initial stage of career has a higher repayment capacity due to longer remaining service years. Also, their income can grow as the career advances; as such, their eligibility can be higher than that of older people. Based on this consideration, you may thus utilise a housing loan eligibility calculator to determine the loan you are eligible to avail.
3. Your occupation and employment status
A person’s occupation and employment status are also of considerable importance for lenders. A person working in an MNC or public sector is considered more reliable for loan repayment. Similarly, a professional with a stable business is likely to receive the loan at favourable terms.
Hence, you need to provide documents required for home loan as per your occupation and employment status to receive better interest rates and other terms. With suitable eligibility, you can avail an easier and faster way of getting a home loan. When purchasing a home, you want to make sure it has all of the qualities your requirements demand – so it makes sense to get a mortgage that ticks all of those boxes. It makes no difference if you’re searching for a low interest rate, an offset account, unlimited additional repayments with the option to re-fund, hop over to this site to know more.
4. Value of the property
Your property’s value is essential in meeting home loan eligibility. As the house you purchase is mortgaged with your lender and acts as a security for the financing you avail, higher property value can fetch you a home loan of high-value. Based on the lender’s policy regarding loan to value (LTV), you can get a considerable amount as a home loan.
Some reputed lenders in the market offer a high LTV of up to 80% of your property’s value. You may calculate the credit amount you will be eligible to avail a housing loan.
Other factors that affect your eligibility to get a home loan include your existing debt obligations that determine your repayment capacity and your credit score.
These considerations help financial institutions mitigate the risk of lending through the necessary precautions. You must, therefore, make sure to meet the eligibility criteria laid down by your lender to increase your chances of home loan approval. Thus, you should use a housing loan eligibility calculator to know the amount you can avail and apply as per the home loan process in India.
