Applying for a Home Loan in India? Here’s How to Get it Approved!

Today, it is easy to apply for a home loan from within the comforts of your house. You need not wait for days or visit the lender to complete the application process. However, the same cannot be said for loan approval. Depending on your home loan eligibility and the complexity of your application, a housing loan application can take days or even months. While approving or rejecting your loan application is at the lender’s discretion, you can enhance the chance of approval with the following tips:

Tips to Get Your Home Loan Approved

  • Maintain a high CIBIL score

Your CIBIL score is an indicator of your repayment capacity, and so, it is the first thing that the lenders check when you apply for a home loan. Your loan is most likely to be rejected if you have a low credit score. Ideally, you must have a credit score of 700 or above to get your loan approved. Before you apply for a housing loan, check your credit report and credit score. If it is low, you might want to postpone your loan application until it gets improved.

  • Have a stable job profile

One of the vital home loan eligibility criteria is to have a stable job profile. If you wish to apply for a housing loan, it would be best to defer switching jobs or making any significant change in your career. An unstable job profile reflects an unsteady income source, which is not preferred by the lender for loan approval. 

  • Club in all additional income

While applying for a home loan, add in all your income. You can add bonuses, rental income and interest income for the total income calculation. Clubbing your income has a positive impact on your eligibility and repayment capacity.

  • Have a joint home loan

To get the loan approval faster, you can avail a joint loan. The lender combines the income of the co-applicants that helps enhance your eligibility and chances of loan approval significantly. However, your co-applicant must have an income and should meet the lender’s eligibility.

  • Clear existing loans

You must pay off your existing loans before you avail a home loan. Lenders consider your debt to equity ratio while approving the application. If you have a high debt to equity ratio, the lenders could hesitate in approval doubting your repayment capacity. Also, while you pay the existing debts, ensure to get it updated in your credit report. Also, take the No Dues Certificate from the lender to certify that you do not owe any money and can take an additional loan. 

  • Opt for a longer tenure

A longer tenure gives you ample time for repayment, assuring the lender that you can repay the loan timely. Compared to short tenure, availing a longer tenure can enhance the chances of loan approval.

The above-mentioned tips can help you get your home loan approved easily and quickly. Also, while purchasing a house, ensure that you opt for a reputed builder and housing project as it affects the approval chances. If the project has a good reputation and adheres to guidelines and norms, you are more likely to get approval faster. Visit the lender’s website and apply for home loan today.

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