All geared up to give a shape to your dream of buying a home but not sure about the quantum of loan you are eligible for? Getting the desired Home Loan amount that you have applied for depends on your eligibility criteria.
If you have (or planning to) Applied for a Home Loan, here are some factors that will determine how much loan amount you can get from banks or NBFCs:
Interest rates on Home Loan are constantly dropping; still, not everyone gets approval for the desired loan amount.
Are you salaried or self-employed? How old are you? What is your monthly income? Do you have a good credit score? Are you young with a stable income? Do you have financial liabilities? Do you have an existing property? Bank considers all these factors before approving a loan application for the desired amount. In short, your eligibility shall determine the amount of loan you will receive.
When you apply for a Home Loan, ensure that you have enough money to make the down payment. Lenders generally provide 75 to 90% funding, depending on the value of the property. Lower the loan amount, higher the funding by banks. Hence, make sure you have at least 25% of the cost of the property before applying for a Home Loan
Don’t have money for down payment? Read here to know How to Buy a House without Having Money for Down Payment?
Adding a co-applicant with a steady income can increase your loan eligibility and can thus improve your chances of getting the desired loan amount. The co-applicant can be your spouse, parent, sibling or child.
Your credit score also determines approval and quantum of a Home Loan. If you have a track record of bad repayment history, it may negatively affect your borrowing credibility. Besides, debt liabilities such as a previous loan with a long tenure of repayment may act as a deterrent for obtaining a high loan amount. Having no liabilities and a good credit score will not only help you get a higher loan amount but you can also enjoy the benefit of lower interest rates.
Checking your eligibility criteria is fast and easy. You can check your eligibility at our financial services portal www.mymoneymantra.com. With our easy-to-use tools you can check your loan eligibility in seconds. Comparing Home Loan deals offered by numerous banks takes just a few clicks and you can buy the best deal on the same platform!
Reshma Rawat is a passionate writer with a decade of experience in writing for a variety of domains (finance, technology, lifestyle, e-commerce, real estate, etc.). Currently, she is working as Assistant Manager - Content @MyMoneyMantra and writes blogs & webpages on financial products (loans, credit cards, insurance, government financial policies, mutual funds, etc.).
Director- MyMoneyMantra FinTech| A senior retail and commercial banking professional, adept at handling Business Development, Sales Planning & Growth, Product Strategy, Marketing Operations and Client advisory services phygitally.
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