Home Loan Eligibility for Salaried
Home purchase is not very often in our life time. For many it’s once in a life time opportunity An essential part of buying a home is getting home loan as generally only few can afford to buy home without loan.
It is good and important to understand home loan procedures and process. It also helps to understand our eligibility and step of home loan assessment. We are trying to simplify the home loan evaluation.
when bank / financial institution is looking at your documents and doing your credit appraisal. It try to understand how much money should be given to you, so you are comfortably able to repay.
Let’s talk about first thing – Your profile
When you apply for home loan, 2 things are under evaluation. First if your profile second is property for which or against which home loan is required.
Decision of credit appraisal is done based on following 4 things
1. Repayment capacity
It is generally understood that you will be able to pay maximum 50% of monthly income as emi to bank. Any further exposure puts burden on you, and result is irregular emi payment, which banker does not want. Due to this banker tries to keep total income to emi ratio (Including any other emi of existing loan) below 50% unless where favourable reasons are available.
A property loan is long term commitment. A Banker wants to be sure he is giving loan to someone who holds stability in his/her profession. For salaried generally 2 year’s continuity and for business man minimum 3 year continuity is taken in to consideration. If you are irregular / quick job changer in your profession banker may deny you loan. On the other hand stable in business or job without breaks is considered as more favourable loan candidate.
3. Growth Prospects
Take this for example we have 2 loan candidates A & B.
A is 28 Year old IIM passed professional, has 1lac/PM salary. A is unmarried and has no other liability. B is 48 Year old, a graduate from regular collage having 1lac per month salary, and 2 collage going children to take care of…..
Things banker can point out
- B will not be able to spare money as much as A can to repay loan.
- Banker cannot ignore that A has achieved same salary which B has achieved at the age of 48
- growth prospect of A are better in future
Based on these search banker may offer A an emi up to 55% of salary, but B may be eligible for 40% Only. Also as B will be eligible for loan only for 12 years which means his per lac emi for 12 years will be much higher than A’s per lac emi of 20 years. So it is quite possible that A may be eligible for double the loan which is considered for B
4. CIBIL Score
Credit Score provides information about your existing or past loan / credit cards etc extended by all different banks. Seeing your credit pattern and repayment track record banker can find out how serious you are for paying your loans. Based on your previous transactions banker banker evaluate your suitability to long term loan.
But you can get more then this.
At Joy Loan we understand that you are unique, so are your requirements especially when it comes to loan. We’ll be there for you at every step, keep you updated at every step to ensure hassle free documentation and processing.
In case you need a loan higher then your eligibility or have a not so good CIBIL history get in touch with us. We may still get you what you just need.
See your self, how much loan you are eligible for
Check our advanced emi calculator and check for your self. With this you will know everything you need to know before taking a home loan
At the end, I will say, you can do all working and chose a home loan deal best suited to you. Or you can take our help for most affordable loan OFFERS With door step service from your home or office. We don’t charge anything our services. Simply fill your details. We will do all this for you
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