Top Factors that Can Increase your Home Loan Eligibility

Do you want to apply for a home loan? If yes, you will need to prove your home loan eligibility. 

Generally, home loan eligibility criteria and documents required are mentioned on a lender’s website. 

But, some factors also affect and may increase your home loan eligibility conditions. Read on and know more!

1. Maintain a CIBIL score of 750 or more

A healthy credit score of 750 or more can help you increase your home loan eligibility criteria easily. It means that you have paid your bills on time, and lenders can rely on you. You can maintain a robust CIBIL score by making timely repayments. 

2. Apply with a co-applicant 

Two is always better than one! And it is also true when it comes to enhancing your home loan eligibility. Applying with a co-applicant means that you get double the chance to boost your eligibility. You can also share the home loan EMI burden easily. Also, a joint home loan lets you pocket tax benefits of up to Rs.2 lakh and Rs.1.5 lakh on interest and principal repayments. 

3. Go for a longer tenor 

Apply for a home loan over a longer tenor may help you manage to spread the loan amount and pay only smaller EMIs. The only disadvantage of an increased tenor is paying higher home loan interest rate charges. But, if you can make time to time prepayments during the tenor, you will be able to save on interest costs. A longer tenor means that you will find it easier to pay smaller EMIs without defaults. In turn, timely repayments also mean that your CIBIL score will also improve. You will be in a position to get the approval for the next loan because of a healthy credit score. 

Taking into account these factors can help you to improve your home loan eligibility easily.