5 Foolproof Tips To Enhance Home Loan Eligibility

The borrower’s eligibility plays a crucial role in loan approval.

If your eligibility is high, you can expect a quick loan approval. However, if your eligibility is not up to the mark, your lender may increase the interest rate or not approve the loan.

Home loan eligibility is essential since it enables the lender to approve your loan.

In addition, your eligibility decides the interest rate, tenure, and loan terms. You can check your home loan eligibility for free before submitting the loan application.

The following sections contain five foolproof tips to increase your home loan eligibility.

5 Foolproof Tips to Enhance Home Loan Eligibility

1. Keep Your Credit Score High

The credit score is a vital factor that affects every aspect of a home loan. Lenders check a borrower’s credit score before deciding their home loan eligibility.

The credit score is issued by credit bureaus like CIBIL, Equifax, etc.

The credit score usually ranges between 300 and 900, and lenders generally offer the best benefits to borrowers with a credit score of 750 or more.

Hence, before submitting your loan application, you must increase your credit score to avail the lowest rates.

2. Increase the Repayment Tenure

Lenders like PNB Housing offer up to 30 years for repaying a home loan (principal and interest).

However, since thirty years is an extended period, borrowers often reduce the tenure based on their financial capability.

But, when you opt for a shorter term, lenders consider your loan riskier. Hence, they might increase the interest rate or scrutinize your financial profile more rigidly.

Therefore, if you want to improve your home loan eligibility, consider opting for a longer tenure.

3. Close All Loans Before Applying For a Home Loan

Borrowers generally get the best rates when they have no financial obligation besides the home loan.

Loans are directly linked to the debt-to-income ratio, meaning each loan increases your debt.

When lenders check, they look at the borrower’s net obligations and compare them with their net income.

If your current debt is more than 40% of your net income, the lender may increase the interest rate to reduce the risk.

Hence, it is wise to clear off your current debt before availing of a new loan.

4. Club All Income Sources Before Calculating Home Loan Eligibility

Suppose you have any other income source, such as rental income, freelance work, part-time work, or interest income.

In that case, it is prudent to disclose them to the lender; the higher the net income, the better the eligibility.

If your home loan eligibility is high, you can get a high loan amount and quick approval.

PNB Housing Home loan amount of up to 90% of the home’s market value, and a decent income can make you eligible to get the highest amount.

5. Include The Spouse Name

Sometimes, borrowers include their spouse’s name to increase their loan eligibility.

But, including the spouse name can only increase your loan eligibility if your spouse has a higher monthly income than you. Including your spouse’s name has two benefits.

First, it increases your home loan eligibility, and both applicants can claim tax deductions under Section 80C and 24 under the Income Tax Act.


Checking your home loan eligibility is the first step before applying for a loan.

While the tips mentioned above can help you enhance your eligibility, choosing the right lender makes it foolproof.

Reputed lenders like PNB Housing offer industry-best interest rates and relaxed eligibility.

Also Read: Top 10 Financial Tips For Those Over 50

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