Check the Easiest Way to Increase Loan Eligibility in 2021

A home loan can help you to fulfil the most cherished dream of your life - having a shelter of your own. You can get the best loan terms and interest rates if your eligibility is high.

Here are the things you can do to increase your eligibility while applying for a home loan.

Repay Existing Loans

If you have any outstanding loan or card dues, try to clear it before applying for a home loan. Too many loans can affect your debt-to-income ratio negatively and may decrease your loan eligibility.



Increase Your CIBIL Score

CIBIL score determines your eligibility for a loan. The more robust your credit profile, the better are the prospects of loan approval. Before applying for a home loan, you must take steps to improve your credit score.

Opt For a Long-Term Loan

Choosing a long-term loan can increase your loan eligibility. As an extended tenure lowers the EMIs, loan repayments become more manageable. However, before choosing a long-term loan, try to use a house loan calculator to check the actual savings.

Apply For a Joint Loan

When you apply for a joint home loan, your eligibility increases, you can include the name of your spouse, sibling, or any other family member. The lender usually clubs the income of both applicants to calculate the eligibility. 

Conclusion

The steps mentioned in this blog can increase your loan eligibility to a great extent. A wise investor always uses a house loan calculator to check their eligibility before applying for a home loan

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