For many of us, owning a home is a big dream. We strive hard for years and secure finance to make this dream come true. “Home is not a place, it’s a feeling” and we all agree with this. It is a place where we live and cherish memories forever.
As a private salaried employee, do you find yourself in the same situation, wanting to be a homeowner? Then just stop worrying. Today, you can get a housing loan readily to purchase your dream home.
However, before applying for a home loan for private employees, check if you are well-prepared with the following steps.
1. Check your eligibility criteria
The first step in applying for a home loan is to check whether you are eligible for a home loan. Unfulfillment of even one criterion can result in the disapproval of your home loan application. Checking and fulfilling the eligibility criteria beforehand is key to a smooth and speedy approval process.
Most financial institutions have different sets of home loan eligibility criteria for loan approval. At Tata Capital, we follow the criteria mentioned below:
- You must be a salaried employee
- You must be an Indian Citizen
- You must be between the age of 23 to 62
- You must have at least 3 to 4 years of working experience
If you find yourself fit in these home loan eligibility criteria, then you are good to go ahead with the procedure.
Additional Read: How Can Non-Salaried Individuals Increase their Chances of Getting a Secure Home Loan
2. Keep documents handy
You need to follow an extensive documentation process when applying for a home loan. Here’s a list of the important documents that you must prepare before applying for a loan with Tata Capital.
- KYC documents
- Form 16
- Address Proof (bank statements, voter’s ID, utility bills, etc.)
- Photo Identity Proof (PAN card, Passport, Aadhaar card, etc.)
- Employment details (appointment letter, salary slips, etc.)
- Age proof (PAN card, Passport, driving license, etc.)
As with the eligibility criteria, preparing your required documents beforehand is advisable, so you don't miss out on any vital documents.
3. Income proof
To be eligible for a home loan for a private employee, having a steady source of income is of utmost importance as the lender wants to be sure of your repayment capabilities. A lender will ask you to show an income proof document to verify your income and establish your financial ability.
You can provide the following income proofs:
- Bank statement over the last 6 months
- Salary slips for the last 6 months
- Employment continuity proof
4. Maintain a good credit score
Your credit score is an indicator of your financial well-being. Financial institutions consider your credit score a critical factor when approving loan sanctions. A credit score of around 750 is considered good and you might easily qualify for a loan. Not to mention, you might fetch lower home loan interest rates if you maintain a good credit score.
But if you have a low credit score. Here are a few tips to improve your credit rating:
#1. Start by obtaining a free copy of your credit report to understand your current credit score and identify any areas that require improvement.
#2. Never default on your credit card bills and EMIs. Repay them on time and in full.
#3. Avoid utilizing your credit cards to their maximum limit, as this can impact your credit utilization ratio and lead to a lower credit score.
#4. Don't have too many outstanding loans. Prior to submitting an application for a home loan, try to pay off a few other loans.
A bonus tip while applying for a home loan for a private employee is to opt for a longer loan tenure, as it can lead to smaller EMIs. Most lenders prefer longer loan tenures as it reduces the likelihood of borrowers defaulting on payments.
You can start with a longer tenure and make part-payments whenever you have surplus funds, which can help to reduce your overall interest payment and help you pay off the loan faster. This allows you to save money on interest while keeping your monthly budget in check.
Additional Read: What Is the Role of CIBIL Score in Getting a Home Loan?
Your dream home is a loan away!
Wondering if you’ll qualify for an affordable housing loan? Fret not! With Tata Capital’s high eligibility loan options, you can get the required funds for your dream house in no time!
If you have everything in place, then do not hesitate to apply online for a housing loan at Tata Capital with competitive interest rates starting at just 8.50%. Besides, we offer flexible EMI options, easy repayment, and a quick loan disbursal for your convenience.
Visit our website to check your home loan eligibility, use our home loan EMI calculator, and learn more about our offerings today.
29 April 2022
4 mins read
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