Buying a home can be one of the most fulfilling experiences in life. Most people prefer to take home loans to finance their purchases and make the process easy. Besides, many lenders today rely on relaxed eligibility criteria to provide loans, which is why you can now obtain the necessary funds within days of applying.
In any case – you, as the borrower, can follow some simple steps to make sure your loan application gets approved instantly. Here are some tips to ensure a smooth borrowing process.
Strengthen your credit score
The credit or CIBIL score of the applicant, ranging on a scale of 300-900, is one of the most critical factors impacting your home loan eligibility. If you have a high CIBIL score, ideally of 700 or above, lenders may be willing to overlook some other shortcomings and grant you the loan simply based on your credit score.
This is because a high CIBIL score reflects your diligence in making loan repayments. So, lenders will be assured of your repayment ability. As such, having a CIBIL score closer to 900 is the best way to get a loan approved quickly.
Clear off your pending debts
Before taking a loan for your house, make sure to clear any pending loans and credit card dues to improve your eligibility. Doing this will not only help you convince the lender of your creditworthiness but will also free up your finances and make room to accommodate the loan EMI payments.
However, if you feel that you cannot prepay an existing loan to close it earlier, don’t forget to use a home loan EMI calculator.Using the calculator will help you get the gist of your EMI obligations and tweak the loan amount according to your affordability.
Additional Read: Home Loan Guide: Get Details on How to a Get Home Loan in India
Get a co-applicant
One of the lesser-known ways to boost your credibility as a borrower and quicken your home loan approval is to get a co-applicant. A co-applicant is an immediate family member, such as a parent or a spouse, who earns a stable income and can support you in repaying the loan. Getting a co-applicant can increase your loan eligibility as the lender combines your income with your co-applicant’s income to offer better loan terms.
Know the basics of a loan
Finally, be fully aware of your chosen lender’s terms and conditions, including tenure, interest rates, prepayment facilities, processing time, etc. You must go through the application form thoroughly and understand the fine print to smoothen the process.
Additional Read: Can we get a pre-approval for home loan in India?
At last, gather all the relevant documents and disclose your credit information honestly. And if you’re looking for reliable housing finance, turn to one of India’s leading lending institutions – Tata Capital!
At Tata Capital, you can get your loan approved in a quick and hassle-free manner. We only require minimal documentation to disburse your desired loan amount in the least time possible. So, don’t delay and avail of the most competitive home loan interest rates today! Visit our website to know more.