My Home Loan Eligibility helps me decide the interest rate!

You can get the desired rate of interest on your home loan from your respective lender when you meet the home loan eligibility. The borrower, while applying for a loan makes several mistakes during the procedure, which turns the home loan interest rates high. So, to avoid those errors read the given article to know the importance of home loan eligibility to your interest rate.

What are the home loan eligibility list of details?

There is not a particular detail required for loan eligibility, you just need to meet certain criteria to get the loan. And the home loan eligibility criteria vary from lender to lender. Look at some of the similar details which you will find from every home loan provider.

Age: Your age should be 21-25 years at the beginning of the loan because every lender offers a home loan to customers with duration up to 30 years. And if you reach the retirement period during the tenure of the loan, then a high-interest rate is charged on your loan. So make sure, you fit in the home loan age criteria before applying for it.

Income: Another thing that helps you get the desired home loan interest rate is your monthly income. If you yield a good amount of income, reducing the monthly liabilities and other EMI’s, then the bank or NBFC would charge an appropriate rate of interest to your loan.

Credit score: The previous record of your loan or credit card payments are taken into account to know the creditworthiness. If your score ranges from 700 to 900 then there is a good chance of getting the desired interest rate on your home loan.

Advantage of low interest rate on my first home purchase!

If you have not borrowed a loan before for home finance and buying or constructing a new property, then your home loan interest rate could be in your favor. You can choose the interest rate to your borrowed amount to be floating or fixed. Because a floating rate of interest changes with the duration while the fixed home loan interest rate remains the same from beginning to the end. And if your home loan eligibility for the amount is high, you can negotiate with the lender for a reasonable interest rate.

Under what circumstances, I am eligible for tax deductions on a home loan!

The government provides additional benefits on your loan payment for the house construction and purchase under the Income Tax Act (ITA) of 80C, 24b and 80EE. Your home loan eligibility for ITA is valid if you do not pre-pay or foreclose the loan after getting the tax benefit. The tax benefit on a home loan can be availed after 5 years of timely payment. And you must submit all your documents to the lender during the loan process to get the benefit. Your income proofs and Id details are necessary along with the property documents which include the valuation charge, stamp duty charges, etc. So, Finance your property with a home loan to get the benefit of an attractive interest rate, longer repayment duration and the house of your dreams if you are home loan eligibility meets the loan criteria.