Understand Credit profile

Age factor is crucial

Home loans are usually available for longer tenure around 20 to 25 years. Though, one can avail the maximum tenure depends upon the customer's age in which he is applying for the loan. The age factor plays a vital role in deciding upon the tenure of the loan especially when the person is near to the retirement.

It is observed that customers who are in the age group of 50s apply for the home loan. In this case, if the person requires 20 yrs tenure, so that he can easily pay the EMI, then he should go for joint home loan. It will not only increase the loan amount but will also increase the loan tenure.

Importance of the place of employment and its stability

Banks lay a lot of stress on job stability and even on the place of employment where the customer works. They demand that the customer should have worked for more than 1 year or 3 years. There are cases where bank does not provide loan if they are curious towards the company’s future. One should not change their job so fast, as it affects his creditability. Try to remain for 1year in a company.

Does gender make any difference in getting the loan?

Few years back, the banks oppose to provide the loan to the women who are single. The reason behind this was the fear of the bank of losing income if the women get married. But in today’s time, this view has been changed towards the women.  Now, women are also career oriented. So the banks are tapping this emerging segment. Though, in some cases bank still asks for the guarantor. It can be her husband or parents. In the home loan, one should go for a joint home loan as it increases the eligibility of the person for the higher loan amount.

Track record of repayment

It is another crucial factor for the processing of any loan application may be it is a home loan or a personal loan. If the person defaults in paying the credit card bill, or any EMI of the previous loan, it affects his CIBIL score. When the bank looks upon the past track record, and it finds out any default in the repayment of the loan, the banks do not sanction loan easily. Even if one’s loan is sanctioned, the interest rate will be high in this case. So, one should never default in repayment of the loan EMI or payment of the credit card.