How to Check Home Loan Eligibility for Free?
With the introduction of digitization in the Banking sector, availing a home loan has become a quick and hassle-free process. You can apply for a home loan at the ease of your fingertips and take the first step towards purchasing your dream house. However, before applying for a home loan, check your home loan eligibility beforehand. This will not only reduce the chances of loan application rejection but also give you a fair idea as to how much amount can be borrowed.
Here’s a step-by-step guide for checking home loan eligibility with the help of our online home loan eligibility calculator.
Steps to Check Home Loan Eligibility
- Step 1: Visit Kotak Mahindra Bank’s “Home Loan Eligibility” page and open the Home Loan Eligibility Calculator.
- Step 2: Enter your basic personal and financial details such as your age, credit score, net monthly salary, etc.
- Step 3: Enter the amount of current EMIs or other financial obligations (if any).
- Step 4: Mention your city of residence.
- Step 5: Enter your date of birth.
- Step 6: Select your loan tenure.
Click on ‘Check Your Eligibility’ to calculate your home loan eligibility with ease. A home loan eligibility calculator helps you plan the repayment strategy and makes the home loan application process hassle-free and transparent.
There are certain measures that you can take to boost your home loan eligibility.
Tips to Improve Home Loan Eligibility
- Maintain a good credit score
The credit score plays a crucial role in deciding whether your loan will be approved or not. A high credit score of 750 or above will enhance the loan eligibility and help you avail a higher loan amount at a competitive interest rate. You can improve the credit score by clearing outstanding dues, having the right credit mix, and decreasing your credit utilization ratio.
- Do not apply for multiple loans simultaneously
When you apply for a home loan, the lender may raise an inquiry with a credit bureau to assess your default risk. Such enquiries are known as hard enquiries and are recorded in your credit report. Multiple enquires may hurt your credit score and make you a high-risk applicant, thereby affecting your home loan eligibility. Thus, to avoid this, do not apply for multiple loans simultaneously.
- Assure the lender about your high repayment capacity
Your income and employment stability determine your repayment capacity. Therefore, make sure to inform the lender about your steady finances, regular income, and the possibility of better earnings in the near future. Also, if you have any additional source of income, ensure to provide the details of the same to the lender.
- Add a co-applicant
If you wish to avail a higher loan amount, it is advisable to add any earning member of your family as a co-applicant. This will increase the maximum amount you can borrow because it enhances your EMI affordability. Hence, it helps boost your home loan eligibility considerably.
Make the most of the above-mentioned tips to improve your home loan eligibility. Since a home loan is a long-term financial responsibility, ensure to read and understand the terms and conditions of the loan agreement carefully.