In the current era, with the rising prices of real estate, one can only plan to buy a dream home with the help of a loan only. Especially after the Covid-19 outbreak, the property market has witnessed quite a rise. This is where a home loan comes into play. It is a well-known fact that to get a home loan, you must check housing loan eligibility first, as there are certain checkpoints you need to keep in mind before actually getting a loan.
Our country’s high real estate cost leaves an individual with no other option than a home loan. In simple terms, a home loan is a loan taken from a bank to purchase a residential or commercial property.
What is a home loan?
A home loan is a secured loan where you mortgage your property to a lender. Here, an individual has to pay a portion of the principal amount and interest through monthly instalments, known as EMIs (Equated Monthly Instalments). Therefore, one gains complete property ownership at the end of the loan tenure.
Moreover, before opting for a home loan, it is important to check your eligibility via a housing loan eligibility calculator.
(Note: Both the principal amount and interest qualify for a tax deduction)
What factors affect it?
From employment status to credit history, several factors affect a home loan. Availing the facility of a calculator is always right as it makes sure that an individual is on the right track.
If an individual is employed with a reputed company or is a self-employed individual with a stable income, it makes you more reliable as a borrower. But if there is unstability, the chances of getting a loan are low.
If there is no credit history, the lender will have no reference point to use while analyzing the credit conduct.
As there is no collateral for a home loan, financial institutions want to know that you have a good income from your job or other sources that allow smooth monthly payments.
What is housing loan eligibility?
It is a set of criteria basis where a bank can assess whether the borrower is creditworthy or not to avail and repay a loan. The two primary factors of home loan eligibility are income and repayment capacity of the borrower. Meanwhile, other factors include age, credit score, financial position, etc.
How to check your eligibility?
Please note that this content piece is not promotional, as I’m just sharing my personal experience so that all readers can understand it better. I’ve been using the Bajaj Finserv application for over a year for my smartphone and broadband recharge.
Recently, when I was planning to buy a 3BHK flat in Gurugram, I was looking for a home loan. But to avail a loan, one of my colleagues told me it is important to check loan eligibility first. This is where this application helped me as I checked my eligibility with a housing loan eligibility calculator.
So, if you are planning to go for a loan for your dream hemp bedding, don’t forget to check your eligibility which includes certain factors such as age, monthly income etc. However, if someone has already opted for a home loan and are planning to ease the burden, they tend to prefer the option of a home loan transfer.