Even though the past few years have witnessed an increase in home loan disbursals from financial institutions across India, there still remains a possibility of a borrower’s application being rejected on several grounds.
While home loan apps have made applying for these advances a lot easier, it is still crucial for individuals to be mindful of the following aspects to ensure that their application is approved –
To ensure easy approval of home loans, borrowers should ensure that they have a healthy credit score of 750 or above. An individual’s credit score depends on several factors like their repayment history, existing debts, etc.
Lending institutions deem borrowers eligible to avail home loans if they meet the minimum income criteria. An individual’s income is also a determinant factor of the amount of advance he/she can borrow.
Existing debts can have a significant impact on the approval of home loans, while unpaid dues can be a cause of concern. It is thus imperative for individuals to track their existing debts if any, through instant loan apps. For instance, the Bajaj Finserv app – Experia allows users to check their previous borrowings with ease.
LTV is the ratio between the loan amount and the market value of the house. A higher LTV makes the loan riskier for lender. In such cases, borrowers may face rejection. On the other hand, making a higher down payment reduces the LTV, which increases the chances of approval.
Home loans usually come with a long tenor ranging up to 240 months. Since repayment of the borrowed advance has to be made over a long period of time, younger individuals stand a better chance of getting their loan easily approved through an online loan app.
With these aspects in consideration, availing easy loans can become hassle-free for potential borrowers.
While home loan apps have made applying for these advances a lot easier, it is still crucial for individuals to be mindful of the following aspects to ensure that their application is approved –
- Credit score
To ensure easy approval of home loans, borrowers should ensure that they have a healthy credit score of 750 or above. An individual’s credit score depends on several factors like their repayment history, existing debts, etc.
- Income
Lending institutions deem borrowers eligible to avail home loans if they meet the minimum income criteria. An individual’s income is also a determinant factor of the amount of advance he/she can borrow.
- Existing debts
Existing debts can have a significant impact on the approval of home loans, while unpaid dues can be a cause of concern. It is thus imperative for individuals to track their existing debts if any, through instant loan apps. For instance, the Bajaj Finserv app – Experia allows users to check their previous borrowings with ease.
- LTV ratio
LTV is the ratio between the loan amount and the market value of the house. A higher LTV makes the loan riskier for lender. In such cases, borrowers may face rejection. On the other hand, making a higher down payment reduces the LTV, which increases the chances of approval.
- Age
Home loans usually come with a long tenor ranging up to 240 months. Since repayment of the borrowed advance has to be made over a long period of time, younger individuals stand a better chance of getting their loan easily approved through an online loan app.
With these aspects in consideration, availing easy loans can become hassle-free for potential borrowers.
Also Read:- Apply for a Home loan via Online Loan App
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