Five factors hurting Home Loan eligibility

Home Loan eligibility

If you thought a robust credit score and income were enough to secure your dream home, you are sadly mistaken. There are many other factors that bankers verify before clearing your loan application.


Working Years Left:

The home loan eligibility is higher for a 30-year old drawing Rs. one lac monthly than a 50-year old earning Rs l.5 lac a month.

As you can see, the 20-30 years of residual employment years will always be preferred over a mere 5-10 years left for retirement.

Profession or Work Sphere:

Generally banks are apprehensive about extending home loans to new, unproven business enterprises or to freshers in employment.

The bank may also be less keen to clear the application of an employee of an organization with total workforce below 50.

People working in media, police department and law firms have conventionally low home loan eligibility.

Property Check:

Before disbursing loans, bank charges a separate fee to verify the property in question. It is one of the biggest factors that directly impact a bank’s loan approval function. If found in the list of blacklisted projects or developers, the chances of loan approval become close to zero.

Overdone Loan Enquiries:

Think twice before making your loan enquiry rounds from bank pillar to bank post.

It may leave an unpleasant trail on your credit profile as a person ‘enquiring too much’ is labeled ‘credit hungry’ and accordingly assigned a lower eligibility score.

Family History:

A bank is particular about the family history of the aspiring home borrower. More often than not, single women take a hit on this front as the bank tends to link their single, ‘no support’ status with a higher probability of default.

The presence of a loan defaulter in the family may also significantly spoil one’s chances of loan eligibility.

Curated from Five factors hurting Home Loan eligibility


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