The flying rates of property have property on their wings, which makes its unreachable from the reach of a common man. The rates of property are so high that a common man cannot think to buy the property only on his savings. For buying a property loan is the easiest way which you can opt. This is the way which makes buying property in your capacity and without taking favor of your known one. But banks have their own norms to allowing the loan. Here we are going to discuss on some points which can increase your home loan eligibility.
1) Increasing the loan tenure
The most common method of increasing your loan eligibility is increasing the loan tenure. This is so because the EMI (Equated Monthly Installment) per lakh, which an individual has to pay, starts to decline as the tenure increases. If your select long duration then the base money or the interest rate will not changed but your EMI will lower down, and this reason enhance your eligibility to loan.
2) Repaying other outstanding loans
If you have a liability to pay your other loans, then it will decrease your eligibility of home loan. Industry standards said that if you have existing loans with 12 unpaid installments, then that loan will consider at the time of computation your loan eligibility and it gives adverse effect. It’s always suggested that when you are planning for home loan try to repay all your loan liabilities first so that the maximum benefits you can get.
3) Clubbing of incomes
Clubbing is another way to increase the eligibility of home loan. Clubbing of income is the phenomenon of calculation the income of other person along with your income to increase the eligibility of your loan. For taking benefit of clubbing your can add the income of your spouse, father, mother or son. For example your income is 5lac per annum and the income of your spouse is 6 lac per annum then if you club the income of your spouse with your income, your eligibility will increase from 5 lac to 11 lac.
4) Step-up loan
Step-up loan is the one of futuristic way to increase your loan eligibility. The mean of set up loan is to fix lower EMI for the starting time and after a set time the amount of EMI will be higher. This phenomenon is base on the theory that the income of the person will definitely increase in the future. This type of loan is one of the most popular way for loaning.
As can be seen, there are many ways to increase loan eligibility. However, individuals need to keep in mind that increasing the eligibility can have an impact on their financial planning.