A home is an aspiration and a feeling. It is much more than a shelter that saves you from various obstacles and hurdles. A home is a good investment and it offers good social status and financial stability. However, it is not a quick buy because the investment is high. It is not easy to slush out savings or income to pay for the entire property cost. That is when a home loan plays its part.
A fast home loan from Clix Capital offers easy and quick disbursement so that borrowers can enjoy their new home without any delay. A home loan is an expensive and valuable loan because of the number of funds involved in it. This makes the need for eligibility criteria very high and rigid. A home loan approval is not as easy as it looks. Loan providers and financial institutions pay special attention to the eligibility criteria and conditions of a borrower before approving a loan application. It is a commitment for a good number of years, so the process of screening for eligibility is rigid to avoid any further risk. Take a look at some of the obvious home loan eligibility criteria so that you can start working on them.
What is a home loan?
A home loan is an end-specific loan that is borrowed from any loan provider or financial institution to purchase a property. It involves around 90% of the property cost as required by the borrower. The down payment for the property is not done by the loan providers. It comes in a one-time lump sum disbursement followed by monthly installments for the fixed tenure. A home loan is a secured loan because the loan providers can recover the loss of default from the property itself. The eligibility criteria are high and every individual needs to meet them. An excellent score, all the documents, impressive income, and good property are some of the most important factors for getting approval.
5 home loan eligibility criteria
Home loan documents: Home loan documents play a major role in the approval of the application. The borrower needs to arrange all the original copies of documents so that the process of borrowing can start. These are the following documents that are important, listed below:
- Latest 3-month salary slips & latest 1-month salary slip for Guarantors
- Applicant and guarantor’s Form 16 & ITR – last 1 year
- Copy of employee identity card provided by the employer
- Proof of Identity – PAN CARD (mandatory for loan applications above Rs.10.00 lacs)
- Driver’s License/Voter ID/Passport/Aadhar Card
- Proof of Residence (Driver’s License/-/Voter ID/Passport/Aadhar Card/Registered Rent Agreement)
- If you have a previous loan, then loan a/c statement for the last 1 year along with sanction letter
- duly filled and signed application form along with three passport-sized photographs
- Balance sheet and profit and loss account, computation of income for the last 2 years.
- Income Tax Returns – last 2 years for applicants.
Credit score
To get a fast home loan approval, you need to have an excellent credit score. A credit score is the representation of all the credit activities and behavior of an individual. By checking the credit score, a loan provider decides on the approval or denial of an application. An individual with a bad credit score can not get approval easily. A home loan is a huge commitment for a long-term tenure that an individual with weak credit can not manage easily.
Good income
Income is directly related to repayment. A very good income is expected for home loan approval. If the income is not sufficient, the loan providers can not trust the borrower with a huge amount of money. There are fixed obligations and expenses from the income and it will be difficult to accommodate a home loan EMI. A home loan EMI will not be a small amount. One needs to increase the source of income to convince the loan provider and manage his expenses and debt in the right order.
Property
The right property can increase the chances of approval. A good builder and an impressive location mark the value of a property. A loan provider usually recovers the property if the borrower defaults on the home loan. So, to keep the chances of recovery open, financial institutions will be willing to invest only in good properties. Apply for a small business loan.
Job stability
Individuals taking a fast home loan should have some job stability over the years. A good employer and job stability are important for approval. Make sure you choose the right employer and work in a stable manner.
Wrapping up
A home loan is the best way to achieve the dream of owning a home. If you want a fast home loan approval experience, visit Clix Capital. The process is quick and documentation is minimal with complete digital access.
