Observing the recent hike in home loan interest rates, there’s no denying in the fact that this would create domino effect especially influencing home loan eligibility for any potential borrower. Since it has implied relation with rates, any hike in the interest rate has its corresponding effect on the eligibility. Understandably, potential borrowers need to re-evaluate loan amount alternatives because of the new eligibility.

Here are some best ways to help you improve your home loan eligibility.

Increase loan tenure - Home loan tenure is believed to be one of the factors to affect your housing loan eligibility. It is so because of the corresponding fall in the payment of EMI per lakh caused by an increase in the tenure. Means, if the tenure is increased, other factors like interest rates and loan amount remains constant except the changes in the net interest expense owning to the elevation of tenure.

Understandably, with lower EMI caused by increase in tenure, your repayment capacity plus home loan eligibility both increase automatically.

Disburse outstanding loans - Outstanding loans like home loans, car loans or personal loans are the biggest impediments to improve your housing finance eligibility. Bank’s criteria over computing eligibility of borrowers are based on the loans with 12 outstanding installments which consequently make borrowers liable to disburse all unpaid installments to increase the eligibility.

For instance, if you have personal loan with 16 unpaid EMIs, then you must prepay all those unpaid installments to the concerned lender before you approach to HFC for fresh housing loan.

Clubbing Income – Unquestionably, this is one of the best ways to improve your eligibility for housing finance. An alternative way of clubbing income of kindred (spouse/father/mother/son) will reinforce your income with corresponding increase in your eligibility.

For example, if you are sanctioned housing loan of Rs 10 lakhs on the basis of your current income but you want Rs 20 lakhs, then in that case, you can club income of your spouse (if he/she is earning similar annual income) to double up your income. In such a case, the eligibility will be computed on the basis of clubbed income of both husband and wife thereby increasing your eligibility.

Conclusion – To improve home loan eligibility is a way to convince your lender in terms of the reinforced potentiality to pay off EMIs against the principal loan borrowed. In such a case where the rate of interest is skyrocketing, choosing bank housing finance has become tough task because of corresponding effect on the EMI. Hence, it is quite rational of a borrower to increase eligibility for housing finance to face EMI easily.

Home loan is one of the best loans to help you sort out monetary problems. However, the hike in interest rate has correspondingly affected home loan emi thus requiring borrower increase home loan eligibility. This is the only way to get access to desired home loan. Apply for HDFC Home Loan and HSBC Bank Home Loan in India.