LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » Personal Finance News

Planning for home loan; keep these points in your mind

Before opting for a home loan, always remember that you have closed all your previous debts. This improves your eligibility to qualify for higher loan amount

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Planning for home loan; keep these points in your mind
Representational Image: Photo: Pixabay
Written By: ZeeBiz WebTeam
Updated: Thu, Dec 14, 2017
03:25 pm
Mumbai, ZeeBiz WebDesk
RELATED NEWS
SBI Home Loan Interest Rates: IMPORTANT CLARIFICATION from State Bank of India SBI Home Loan Interest Rates: IMPORTANT CLARIFICATION from State Bank of India
LIC Housing Finance: Griha Varishtha scheme! Home loan product with EMI waivers - All details here LIC Housing Finance: Griha Varishtha scheme! Home loan product with EMI waivers - All details here
After reduction in circle rates, another good news for Delhi homebuyers! After reduction in circle rates, another good news for Delhi homebuyers!
Home loans rate cut alert! 6.9 pc - Bajaj Housing Finance announces reduction in interest rates Home loans rate cut alert! 6.9 pc - Bajaj Housing Finance announces reduction in interest rates
Home loans: Good news! One of the lowest rates - Kotak Mahindra Bank reduces interest rates to 6.75% Home loans: Good news! One of the lowest rates - Kotak Mahindra Bank reduces interest rates to 6.75%

Most of us dream to own a property, but lack of requisite amount leaves us with no choice but to go for a bank loan.
 
Getting a home loan from bank is stated to be easy now, but it involves criteria like showing your monthly income, your capability to repay debt and your current assets to avail the facility.
 
If you fulfil the bank's criteria, your home loan process moves towards the next step. The real difficulty arises when you fall short of certain eligibility.
 
According to Bankbazaar report, there are five important tricks which can support your eligibility for a home loan.
 
Income and Tenure
 
Usually loans and interest charged on them are termed as earnings for banks, therefore it becomes very important for lenders to check your capability to repay that debt.
 
Banks look at your monthly income to assess whether you can accommodate your EMIs along with your other expenses.
 
In case, your net income meets all the obligation but is lower than expected EMI for a home loan, then banks refrain from lending you money. EMI obligation can be taken care, if you increase the tenure of the loan.
 
No existing debt position
 
Before opting for a home loan, always remember that you have closed all your previous debts. This improves your eligibility to qualify for higher loan amount and is always better to show the lender that you are capable to avail the service.
 
One way to close your previous debt is to increase the EMI amount and close the loan early if your income increases in the future. There is no penalty for loan pre-closure.
 
Apply for loan along with a co-borrower
 
Having co-borrower provides potential in saving you from loan rejection. Your combined income along with your co-borrower can meet the income gap required by a bank to give you a loan.
 
This co-borrower can be anyone your parents, relatives, spouse or friends among others.
 
Bank will look at the combined capacity of both the applicants to assess the loan eligibility.
 
Consider step up loan
 
This is specially designed for the borrowers who expect their income to increase in the near future but currently not able to service a high EMI amount.
 
Under this category, banks allow you to pay lower EMI in the initial few years.
 
EMI increases over the years considering that income of the borrower would increase in such period without any change in tenure.
 
Add additional source of income
 
If you still fall short of income, EMI eligibility, then you can give other source of income like rental income or interest income from deposits, or show bonus from employer to prove your income eligibility.
 
You can also add income from freelance work to increase the income level.
 
Before applying for a home loan, you must be careful enough to see the nature of its interest rates charged by banks. There are two types of interest rates named as fixed interest rates and floating interest rates.
 
There is one advantage for the first-time home buyers as they are eligible to get the subsidy benefit under the government's PMAY scheme.
 
Pradhan Mantri Awas Yojana (PMAY) gives you subsidy of around Rs 2.3 lakh which gets credited upfront to your loan account and raises the possibility to your eligibility to that extent.
 
Other important points that need to be remembered for home loan are keeping your CIBIL score at a higher level, stay ready with the down payment money and select the property which fits into your financial capacity.
 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
home loanshome loan interest rateshome buyersPersonal FinanceInvestmentbanks eligibility for home loanhome loan pointersRBIRBI on home loanPradhan Mantri Awas YojanaPMAY on home loanfirst time home buyersEconomyReal Estate Regulatory AuthorityInfrastructure Investment Trusts (Amendment) RegulationsGoods and Services taxGSTReal EstateBanking & Financial Services
RELATED NEWS
SBI Home Loan Interest Rates: IMPORTANT CLARIFICATION from State Bank of India SBI Home Loan Interest Rates: IMPORTANT CLARIFICATION from State Bank of India
LIC Housing Finance: Griha Varishtha scheme! Home loan product with EMI waivers - All details here LIC Housing Finance: Griha Varishtha scheme! Home loan product with EMI waivers - All details here
After reduction in circle rates, another good news for Delhi homebuyers! After reduction in circle rates, another good news for Delhi homebuyers!
Home loans rate cut alert! 6.9 pc - Bajaj Housing Finance announces reduction in interest rates Home loans rate cut alert! 6.9 pc - Bajaj Housing Finance announces reduction in interest rates
Home loans: Good news! One of the lowest rates - Kotak Mahindra Bank reduces interest rates to 6.75% Home loans: Good news! One of the lowest rates - Kotak Mahindra Bank reduces interest rates to 6.75%

LATEST NEWS

Karnataka SSLC Exam 2021 Latest News Today: Will the Karnataka SSLC exams get CANCELLED like CBSE board exam 2021? -Check what education minister S Suresh Kumar SAID

Gold Price Today 15-04-2021 at Rs 49,000; great money-making strategy revealed

CBSE class 10 promotion criteria, class 12 board exam dates and will ICSE Class 10, 12 exams be postponed?—All you need to know

NEET PG 2021 exam date: Important notification for Candidates, here is Latest News on examination

UPSC EPFO 2021: Admit card for the exam released at upsc.gov.in - check exam date and everything you need to know before appearing for the exam

LIC wage revision: Employees to get over 25% wage hike, five day week and other benefits - All details here

Telangana SSC Inter Exams News: Class 10 SSC exam CANCELLED, Class 12 inter exam POSTPONED in the state - check all details here

Samsung Galaxy M42 5G India launch date REVEALED; Check expected price, specifications and more

Strong fundamentals, valuations make Indo Borax and Chemicals Sandeep Jain's favourite

Gold price today 16-0-2021: Rates to hover in the range of Rs 46,850-Rs 47,450, says Motilal Oswal

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved