A housing loan is a preferred and convenient option for buying property, whether investing in a personal 1 BHK or looking forward to your dream retirement villa. For a home loan, the lending institutions have eligibility criteria that you must meet to get the loan. In this article, we highlight those 7-financial factors that would guarantee your dream home loan amount.
1. The CIBIL Score
When applying for a housing loan online, knowing your CIBIL score is the first step to confirming it.
Here’s what to check:
- CIBIL score should be 700 or above (lower than that can lead to rejection of your loan application)
- Having a 700+ CIBIL score increases the chances of you getting a loan.
- An unstable or low CIBIL score also affects your chances of availing a home loan (fluctuating score in the last quarter from poor loan repayment or frequent credit card limit violation)
2. Stable Income Slab
The need for a stable income is among the prerequisite conditions for an Rs.10 lakh home loan EMI. Having a regular salaried income assures the lender of your ability to repay the loan.
Here are the factors that are considered:
- The applicant should be getting a stable salary for the last six months or more.
- Individuals earning from a self-employed profession should have a regular income for a house loan.
- Individuals with a per annum income of at least half or more than the loan amount have a greater chance of confirmation. Salaried individuals must earn at least Rs. 1,20,000 per annum, whereas, self-employed individuals should have at least an income of Rs. 1,80,000 per annum.
- If you have a stable income but a poor CIBIL score, there’s no guarantee for home loan confirmation.
3. Purpose of a Rs. 10 Lakh Home Loan
A Rs. 10-lakh home loan is ideal for buying a small property. Here is how you can present your loan application for securing a Rs. 10 lakh housing loan online:
- Need finance for a small domestic property (1 BHK)
- Need finance for house renovation in your present home (repair, plumbing, flooring, painting)
- Need finance for booking your new or under-construction property
- Looking to construct new floors or extend your housing property
Remember, Rs. 10 lakh is not a big amount for buying a new property. However, it is a smart choice as an investment.
Why Taking a Rs. 10 Lakh House Loan is a Convenient Option?
In the housing loan market, Rs. 10 lakh is a decent or small loan amount. If you have a good CIBIL score supported by a stable income source, the lending institution may offer you attractive home loan rates, which reduces the loan repayment amount. Here’s why a Rs. 10 lakh house loan is a preferable choice:
- Small house loans help you build credibility for higher loan amounts.
- A Rs. 10 lakh home loan is ideal if you want to buy cosy personal accommodation.
- Since the loan amount is small, the down payment for the property will be therefore lower.
- The interest quotient will also be smaller, leading to smaller and more manageable EMIs.
How about a Joint Loan Statement?
Yes! You can take a joint Rs. 10 lakh home loan EMI to increase your chances of getting a loan. Here is what you get when applying for a joint home loan of Rs. 10 lakh:
- Easy repayment terms
- Long tenure period
- Cheaper interest rates
- Lower LTV (loan-to-value) ratio than an individual applicant (cheap EMIs)
How to Apply for a Rs. 10 Lakh Housing Loan Online?
Here is the documentation you require for a loan application:
- Identity proof (Aadhar card/voter ID)
- PAN card/driving license (address proof)
- Bank account details
- Proof of your income source (monthly salary slip/bank statement/last year’s IT return)
- Property document proof (against which the loan application)
What to Remember When Applying for a Home Loan?
A home loan may not get immediate approval unless your loan application gets thoroughly vetted and verified through the lender. It is mandatory to ensure the loan application is proper and detailed. It is advisable to seek the help of a loan manager to take you through the process of applying for a Rs. 10 lakh housing loan online.
If you are new to home loan options, try out Grihashakti today to get attractive offers on the loan amount. To learn more about their rates on offer, visit their website or contact their customer care.