{"id":60,"date":"2020-02-12T08:04:31","date_gmt":"2020-02-12T08:04:31","guid":{"rendered":"https:\/\/www.loanfasttrack.com\/blog\/?p=60"},"modified":"2022-09-06T13:08:48","modified_gmt":"2022-09-06T13:08:48","slug":"what-do-you-mean-by-loan-eligibility-in-home-loan","status":"publish","type":"post","link":"https:\/\/www.loanfasttrack.com\/blog\/blog\/finance\/what-do-you-mean-by-loan-eligibility-in-home-loan\/","title":{"rendered":"What Do You Mean By Loan Eligibility In Home Loan?"},"content":{"rendered":"\n
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Loan Eligibility\nin broad terms means your ability \/ capacity to avail the loan from lender\nbanks\/ NBFCs. It the measurement tool of the banks to decide to lend what\nquantum of funds on the basis of your financial credentials (Financial\ncredentials means your income, other obligations, additional source of income,\netc. i.e. all financial figures associated with you), subject to your current age that decides your loan tenure. However your income and age is not the only criteria\nfor determining your loan eligibility. Your loan eligibility is also largely\ndetermined by the combination of other factors such as your employment details,\nbanks current interest rates, type of loan and its tenure you wish to opt for,\nCIBIL scores and on the market value of the property. <\/p>\n\n\n\n

Eligibility Calculation:<\/strong><\/p>\n\n\n\n

Banks\/NBFCs have their own calculation\nfor eligibility criteria but the formula in general remains same for all, which\nis: <\/p>\n\n\n\n

((Net\nincome per month X 60% FOIR) \u2013 Obligation\/Deductions) \u00f7 Per lakh EMI <\/strong>subject to market value of the property i.e. LTV <\/p>\n\n\n\n

LTV\n\u2013 Market Value of the property X (60%-90%)<\/strong><\/p>\n\n\n\n

 Where, FOIR stands for fixed obligation\nagainst income ratio and Obligation\/Deductions means EMIs of other loans if any\nand LTV means Loan To Value.<\/p>\n\n\n\n

Your loan\neligibility is the final outcome of the lower\nof the two<\/strong>– i.e. your income\neligibility<\/strong> and the LTV factor of\nthe property. <\/strong><\/p>\n\n\n\n

How to increase the loan eligibility:<\/strong><\/p>\n\n\n\n

1) By adding an\neligible co-applicant to the loan application.<\/p>\n\n\n\n

2) By adding your\nadditional variable income from other sources, such as a property rental\nincome, agricultural income, perks from company, etc.<\/p>\n\n\n\n

3) By repaying\nyour existing loan and other debt obligations such as a personal loan or credit\ncard outstanding balance.<\/p>\n\n\n\n

How do banks increase the loan eligibility?<\/strong><\/p>\n\n\n\n

1) By increasing your FOIR percentage\nfor income eligibility and <\/p>\n\n\n\n

2) By increasing the market value of\nthe property.<\/p>\n\n\n\n

Note: Banks may consider increasing\nyour loan eligibility only subject to your clear profile and good CIBIL score. <\/p>\n\n\n\n

As per the RBI guidelines the LTV\npercentage cannot be altered\/ increased to increase your eligibility against\nproperty funding. However market value of the property can be increased to\nincrease your eligibility against property funding by adding car parking to the\nmarket value, by adding cost of amenities (club, gym, swimming pool, garden,\netc) to the market value. <\/p>\n\n\n\n

Other\nSurrogate products for eligibility calculation<\/strong><\/p>\n\n\n\n

Apart from the standard way (formula\nmentioned above), banks also have other surrogate products specially designed for\ncalculating your eligibility so as to make you eligible for the loan. <\/p>\n\n\n\n

1) Banking product<\/strong>:  Specially\ndesigned only for self employed you, where your income eligibility is assessed based on your banking\ntransaction history reflecting in the account statements. For higher\neligibility requirement you may also provide multiple bank accounts. (There is\nno capping on the number of accounts which can be considered). And importantly\nyou are not required to submit your ITRs or financials under this product.<\/p>\n\n\n\n

2) Gross Turnover Product (GTP)<\/strong>: This product is again specially designed for\nself-employed you only. Under such product your income eligibility is calculated\non your Gross Profits (lower of actual or imputed) which increases your\neligibility to 3.3 times higher as compared to the normal eligibility\ncalculation.<\/p>\n\n\n\n

3) Salary Multiplier<\/strong>: This is a Multiplier Product designed only for salaried you for availing your first home loans. The banks has their categorized list of companies and only those you who come under this specified bank\u2019s companies list are eligible for this product of salary multiplier. This product does not consider any other existing obligations of you while calculating your eligibility.<\/p>\n\n\n\n

By,<\/p>\n\n\n\n

Loanfasttrack<\/p>\n\n\n\n

Loanfasttrack<\/strong><\/a> is a Mumbai-based loan provider company since 2015 offering loan services in Mumbai on– housing loan in Mumbai<\/strong><\/a>, mortgage loan in Mumbai<\/strong><\/a>, personal loan in Mumbai<\/strong>,<\/a> <\/a>unsecured business loans<\/strong><\/a>, <\/strong>home loan transfer<\/strong><\/a>, top-up loans<\/strong><\/a>, and loan transfers<\/strong><\/a>. Loanfasttrack is a direct sales associate with leading banks namely, ICICI Bank, HDFC Ltd, Canara Bank, Citi Bank, Piramal Housing Finance, etc.  <\/p>\n\n\n\n

Contact Loanfasttrack:<\/strong> <\/strong><\/p>\n\n\n\n

Website –<\/strong> <\/strong>www.loanfasttrack.com<\/em><\/strong><\/a><\/p>\n\n\n\n

Email – <\/strong>info@loanfasttrack.com<\/em><\/strong><\/a><\/p>\n\n\n\n

Tel –<\/strong> <\/strong>9321020476<\/em><\/strong><\/p>\n\n\n\n

Loanfasttrack\u2019s specialized services include providing:<\/p>\n\n\n\n