The real estate market is one of the most promising sectors of the Indian economy, contributing to almost 13% of the nation’s GDP. Demand for residential, office, retail, and industrial facilities peaked during 2019.
An overlook of India’s real estate industry –
- Rs. 7,18,000 Crore – The predicted market size of India’s real estate sector by the end of 2030.
- 19,600 new units – Were constructed to offer affordable housing for people residing in and around metropolitan cities across India.
- More than 40% hike – In quarter-on-quarter launches of new residential units in the top 7 cities in India.
Such a significant rise in demand for affordable housing is large because of the shifting economic structure of the country. A large number of individuals migrate towards Tier-1 and Tier-2 cities to find their livelihood. Increase in average household income and availability of credit as well as simple home loan eligibility criteria allows a vast number of prospective home buyers to secure residential units in metropolitan areas of the country.
There are several financial institutions in India that offer home loans at affordable interest rates and easy to fulfill requirements. However, that does not negate the importance of ensuring whether an applicant is eligible to avail the credit or not. It is a necessary step to make sure their application is not rejected by a lender whenever they apply for credit.
Ways to ensure you meet the home loan eligibility criteria –
The minimum eligibility criteria to qualify for a home loan may vary between different financial institutions. Moreover, even simple factors may affect the requirements, like home loan eligibility criteria for a salaried individual and the self-employed individual often differ, as the source of income vary greatly between such individuals. It is necessary to go through a particular lender’s specified requirements before you apply for credit.
Fortunately, there are some methods that you can follow, which will help improve your chances of getting approved for the credit. Here are some of them.
– Improve your repayment capability
Lenders are more likely to approve your application if you have a good repayment capability. Although it may not be considered as a home loan eligibility criteria, it is an important factor that every borrower should be aware of.
Financial institutions usually check a few parameters, including your income, FOIR, and present debt. Criteria like the minimum income can affect the chances of getting approved for credit. You should always calculate how much home loan EMI you can afford, and apply for a loan amount accordingly.
– Ensure you have all the necessary documents
Any discrepancy in the submitted home loan documents can cause your application to get rejected without further consideration. That’s why experts suggest collecting all the necessary paperwork before someone applies for a credit.
The list of necessary documents can vary depending on an applicant’s source of income. Salaried individuals may have to submit their salary slips, whereas self-employed individuals will have to show their profit & loss statement as well as bank statement during documentation.
– Apply with the correct credit profile
Your credit profile is another essential aspect that borrowers check while determining your home loan eligibility. Lenders look at your credit rating and repayment history to assess the risk associated with lending you a credit. Usually, a credit score of 750 or higher is necessary to avail a home loan. Otherwise, it may affect your chances of approval and can even draw a higher rate of interest.
The above-mentioned tips are essential for anyone applying for a home loan. Keeping these in mind will ensure you fulfill the necessary eligibility criteria and enjoy approval for the credit without any hassle.