It’s not possible to fulfil your own house dream or to buy a car with amount available in your hand. That’s why banks offer loans. But it is not that easy. Banks and loan agencies measure the person in various aspects. What to do to get loan without any trouble? How to move forward? Let’s know about them…
A person is working in a private company. His salary is above Rs.30000. age 40years. He plans to buy a old flat for 30lakhs. But he had 10lakhs and for remaining amount he applied for the loan. He submitted all documents and waiting for the confirmations. But banks rejected his application. Why it is rejected? We need to observe some details…
There are minimum and maximum limits in age. This will change according to banks. 18years is enough for SBI, Andhra bank, Vijaya bank, Canara bank and other banks. ICICI, bank of Baroda will only give who have more than 21years age. 24years for Axis bank. There are differences in maximum limits also. Most of the banks limit the maximum age to 58years. for example you have 48years of age then banks will give loan for 10years repayment period. SBI, Vijaya bank, LIC home finance, Canara banks limit the highest age to 70years. For businessmen 65years. 65years in Axis bank and 65years in ICICI, Andhra bank and bank of Baroda.
How much is your income?
Income is the main thing to get loan. In this there is limit for only minimum income. To get loans from private and foreign banks you should have higher income. Most of the banks will give the loans for minimum 1.5lakh income per year. Home loan will be paid in installments. So, banks confirm the EMI from 35% to 45% of gross income.
How much time…?
Normally home loans are available for 5years to 25years. If you want more time, then your age should be below 35years. People who are near to retirement they decide loan period to end up to 65years.
Now a days it is common that both husband and wife are earning. So it is easy to get combine loan. You’ll get more amount as loan. If a family have more than one people as earners then banks will proceed faster. It is difficult if the situation is reverse.
How much amount?
Registration fee, stamp duty is must for buying or constructing a home. Banks will consider these also to confirm the total loan amount. It depends on two factors to decide the loan amount. Every bank has its own minimum and maximum limits. For this you need to consult banks.
Some banks will not give more than 80% of home value as loan. Some banks are giving up to 90%.
Some banks are ready to give loan of 48 to 60 times of monthly income.
The main factor of loan eligibility is repayment ability. If you have any other loans then to clear them they deduct some EMI amount from your income.
They inspect working place also…
If all the details like age and income is okay then it is also important to know employment and business safety. Some banks are rejecting loans for some kind of jobs and business.
You need to show the savings…
When you apply for loan banks ask for six months bank account details. So, be particular about your bank account maintenance. Make sure that some amount should be exist in the account. Most possibly clear all the due loans and cheques.
For businessmen account details are very important. Income tax returns also important. If is there any profits yearly then you should give clear information on that. It increase your loan eligibility.
History is important…
Whatever the income and however eligibility, you should have good credit score that is only key element to decide the loan. Banks also check your accounts in different banks.