Want to Increase Your Loan Eligibility? Here Are Some Tips
May 28, 2016 Home Loan
Getting a loan sanctioned is always the toughest steps to procure your dream house. The higher the loan amount the lesser is the burden on the loan applicant. But one’s loan eligibility matters on various factors depending on which an institution or a lender gives the loan. Hence the better the eligibility the easier it is to get loans.
Here are some tips which can help a person increase his or her loan eligibility-
OPT FOR A HIGHER TIME FRAME
The longer is your loan tenure the higher is your loan eligibility as your EMI is based on the tenure of your loan. For instance, if you opt for a loan of say 30 lakhs for a tenure of 7 years but if you increase the tenure to 12 years the amount of loan might go up to 40 lakhs.
PREPAY A LOAN
If you happen to have an existing loan which will be completed in a short period. It is advisable to pay the loan off completely before its tenure. This will help you increase your monthly saving and thus help you in increasing your loan eligibility. Let’s take an example to understand it better, assume a person has an existing loan of 1 lakh 20 thousand on which he pays an EMI of 20 thousand per month. He has a saving of 50 thousand per month, out of which 20 thousand is deducted so he left with 30 thousand. So if you opt for another loan, the bank will consider your eligibility on the basis of the 30 thousand you save.
Hence, in cases like these it is advisable to arrange money and pay off the existing loan so has to get higher loan eligibility.
INCLUSION OF SPOUSE AND PARENT IN LOAN APPLICATION
This is another way to enhance your loan eligibility. If a person includes his parents or spouse as loan applicants then one’s loan amount, as well as eligibility, tends to increase as the income of the spouse and parents also gets included. The only condition is that you have all the required documents and ITR as a proof of their income stability.
INCLUDE YOUR BONUSES
While opting for a loan, don’t forget to mention any additional bonus or income you get from your employer or you get from rental incomes. Mention to the bank all sorts of additional income you generate apart from your regular income. Even while you include your spouse or parents, mention their additional income as well. This makes it easy for you to get your concerned loan approved easily.
Banks mostly look at your overall capacity to repay the taken loan and hence these points can be beneficial to score in that parameter of the banks.
Here are some tips which can help a person increase his or her loan eligibility-
OPT FOR A HIGHER TIME FRAME
The longer is your loan tenure the higher is your loan eligibility as your EMI is based on the tenure of your loan. For instance, if you opt for a loan of say 30 lakhs for a tenure of 7 years but if you increase the tenure to 12 years the amount of loan might go up to 40 lakhs.
PREPAY A LOAN
If you happen to have an existing loan which will be completed in a short period. It is advisable to pay the loan off completely before its tenure. This will help you increase your monthly saving and thus help you in increasing your loan eligibility. Let’s take an example to understand it better, assume a person has an existing loan of 1 lakh 20 thousand on which he pays an EMI of 20 thousand per month. He has a saving of 50 thousand per month, out of which 20 thousand is deducted so he left with 30 thousand. So if you opt for another loan, the bank will consider your eligibility on the basis of the 30 thousand you save.
Hence, in cases like these it is advisable to arrange money and pay off the existing loan so has to get higher loan eligibility.
INCLUSION OF SPOUSE AND PARENT IN LOAN APPLICATION
This is another way to enhance your loan eligibility. If a person includes his parents or spouse as loan applicants then one’s loan amount, as well as eligibility, tends to increase as the income of the spouse and parents also gets included. The only condition is that you have all the required documents and ITR as a proof of their income stability.
INCLUDE YOUR BONUSES
While opting for a loan, don’t forget to mention any additional bonus or income you get from your employer or you get from rental incomes. Mention to the bank all sorts of additional income you generate apart from your regular income. Even while you include your spouse or parents, mention their additional income as well. This makes it easy for you to get your concerned loan approved easily.
Banks mostly look at your overall capacity to repay the taken loan and hence these points can be beneficial to score in that parameter of the banks.
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Vivek Singh Rathore
2016-07-18 15:34:22I have purchase 1500 sqft home But minimum Low EMI
