Most home buyers avail a home loan to purchase a residential property. Housing loans are one of the most sophisticated and beneficial loan tools available in today’s market. Owing to the high-value credit involved, potential borrowers have to undergo a plethora of home loan eligibility criteria to meet the home loan terms and conditions. However, the first hurdle that comes in the way is the loan application approval. Eligibility criteria which applicants are required to meet can range from their monthly income, CIBIL scores to the location of the property to be mortgaged, etc.

Nevertheless, with the availability of online loan application via home loan apps, availing such credits have become easier. Although such eligibility criteria vary between lenders, every borrower is required to meet certain basic criteria to successfully apply for a home loan. All they need to do is adopt some essential tips mentioned below to improve their home loan eligibility and chances of loan approval –

Make Higher Down Payment

As per RBI guidelines, a lender can finance up to 70-80% of the property’s value (LTV ratio). The borrower needs to contribute the remainder of 20-30% as a down payment. Financial experts recommend arranging a higher down payment, i.e. make a higher contribution towards the loan. A large sum of funds as down payment will reduce your LTV ratio as the price of the property remains the same. This, in turn, increases your chances of loan eligibility and boosts the chances of your home loan approval.

You will find several instant loan apps both on Google Play Store (for Android users) and on iStore (for Apple users). One such popular app is the Bajaj Finserv Experia application offered by one of the leading lenders in India, Bajaj Finserv. Download the app and apply for a home loan easily.

Opt For Joint Housing Loan

Factors such as a low CIBIL score, insufficient repayment capacity, high debt-to-income ratio are some of the prominent factors that can lead to a rejection of your loan application. In such a scenario, borrowers can opt for a joint home loan to increase their loan eligibility. If your co-applicant possesses a stable income, good credit score and strong repayment capacity – it can boost the loan approval chances.

Remember, applying for a home loan jointly can also assist in procuring a higher credit amount. Furthermore, in the case of a woman are co-applicant, housing loans are offered with lower interest rates by most lenders like Bajaj Finserv. You can use your lender’s home loan app to avail such credit with ease.

They also bring you pre-approved offers that make procuring loans quick and hassle-free. These pre-approved offers are applicable on unsecured credits like personal loans, business loans and secured advances such as home loans, among numerous other financial products. You can check out your pre-approved offer by sharing a few necessary details like your name and contact number.

Choose A Longer Tenor

First-time borrowers often opt for shorter tenors to complete the loan repayment quickly. However, shorter tenors imply relatively higher EMIs, which can affect a borrower’s repayment capacity and adversely impact the CIBIL score as well. Hence, opt for a longer tenor and make part prepayments and foreclose it whenever you can accumulate surplus funds. This not only makes EMIs affordable but also helps in building a strong repayment track record. You can search for the best loan app as per your preferred lender.

Reduce Your Foir (Fixed Income To Obligation Ratio) To 40-50%

FOIR denotes the proportion of one’s income being currently used for repayment of fixed obligations like home loan or credit card bills. Breaching this 40-50% mark indicates a significant chunk of your monthly income is used to pay off the debt repayments. Lenders often consider this as high chances of defaulting in the future.

Therefore, limit your FOIR while applying for a home loan to increase its chances of approval. If it is higher, consider paying off some of the existing debts before applying for a new one. As for applying for a home loan, download the Bajaj Finserv App from the Play Store or iStore.

Finally, try to avoid multiple simultaneous home loan applications. Instead, focus on these tips to increase your chances of loan eligibility. Simultaneously, you can use a home loan eligibility calculator of your preferred lender to consider the factors before applying.