The demand for home loans has increased over the years and so has the availability of home loan options. Many banks and NBFCs offer different home loan products. Whereas each home loan product comes with inviting features, HDFC Home Loan surely has earned thousands’ trust. The customized plans, flexible tenures and low-cost EMI facilities are key features of HDFC home loans. Furthermore, the HDFC Home Loan Interest Rate has made HDFC a top choice among the home buyers. If you want to avail the HDFC home loan, here are 7 tips to easily get your loan approved.
Maintain a good credit score
A good credit score is a foremost parameter for the bank to decide your eligibility as an HDFC home loan borrower. The bank uses the CIBIL to examine and acquire information about your previous credit behavior. Thus it is necessary to maintain a credit score between 700-800 for your home loan application to be granted. A credit score below 300 is likely to get rejected without any consideration on the bank’s behalf. It is also important that you do not have any default payments if you want to be considered a creditworthy applicant.
The bank takes your occupation under consideration while evaluating your loan application. They will check if your employer is financially stable and disburses the salary on time. Applicants working in reputed companies get preference over applicants working in startups. This is to ensure that you repay the debts on time without any impediments. Also, they have a proclivity to grant loans to those who have government jobs to ensure security. Moreover, if you are a doctor, CA, lawyer or engineer, getting the bank loan approved becomes a cakewalk.
Age is an important criterion
The age limit for both salaried and self-employed applicants is 21 years to 65 years. However, the applicants nearing their retirement age are considered to have high risks. This is because they may lose their regular source of income. Make sure you meet the age criterion if you want to get the approval.
Steady income is important
It is important that you have a stable income. A steady income reduces increases the chance of timely repayment. The bank is likely to examine your income capacity as well. Your account must reflect an adequate amount even after paying the EMI. If not, the bank is likely to consider you as default. If the ratio of income is five times higher than the EMI, you are likely to be considered a safe candidate and bolster your home loan eligibility.
A shorter tenure can be beneficial
Maintaining a short repayment will approve your loans much faster and quicker. The higher the repayment slabs, the more the reduction in your credit score. If you can keep the tenure within 5 years, the bank will approve your loan sooner. However, a shorter tenure means a higher EMI. Make sure that you can afford the EMI. If not, then it is better to repay the loan properly through a longer tenure than missing repayment.
Paying a bigger percentage of the margin money helps
The bank always provides 80% of the entire cost while purchasing a house. The rest 20% has to be paid by the borrower. However, if you can pay more than 20%, the bank will let you do so. This move will be considered by the bank as more reliable and trustworthy and will prevent the bank from defaulting risks. If you are able to pay a bigger margin of the loan amount in the beginning, you are bound to get it approved sooner.
Opting for a joint loan is always wise
Opting for a joint loan is beneficial as it assures the safety of repayment. If you can opt for a co-applicant while acquiring your home loan, the bank will evaluate both applicants. Any lack in one applicant can be adjusted by the latter. A combined loan will give you the benefit of opting for a higher amount.
Besides these, there are certainly other factors that are considered too, before the bank approves your loan. If you are already a customer of HDFC, it will help them to determine your financial records and determine your financial stability. Moreover, you can easily share your documents online. Selective pre-approved customers can get their loan just within 10 seconds.