How to enhance your home loan eligibility

Building your own home is special, isn’t it? To get you, your dream home, banks are offering different home loan facilities to lay the foundation. However, these banks have different mechanism to find out your eligibility before processing your application.

It’s always nice to go for things with your eyes wide open. Here are few tips to help you in enhancing your home loan eligibility.

Check your Credit score before applying Home Loan

Before processing your home loan application, bankers in India will first lookHow to enhance your home loan eligibility into your credit score. Credit score will reveal your credit worthiness. If you already have existing loans then your credit worthiness will come down by which eligibility will also go down.

Before applying for a home loan, you can check your credit score online and make sure that it’s not below 700 points.

If you are a guarantor for your relatives or friends then your eligibility will also go down to the extent of the guarantee that you have given.

Also read: How to get access to your CIBIL report

Increase your Home Loan Tenure

Based on the repayment period, your EMI is calculated which you need to repay every month. If based on your income and debt, bank has decided Rs 20 lakhs as your home loan amount for a period of 10 year then the eligibility can be increased if you increase the tenure from 10 to 20 years.

The reason for such increase is because of lower EMI with respect to increase in home loan period. With the increase in loan period your EMI will come down and will be within your net income or eligibility.

Joint Application

How to enhance your home loan eligibilityAs discussed home loan eligibility is calculated bases on your income. If you want a higher loan and your income is not enough to get that then try applying with your wife or brother or any relative as a joint-applicant to get sanctioned for a higher amount.

Joint home loan will also give income tax benefits to both applicants.


Step-Up loan facility is available with an expectation of higher future earnings of the borrower. It’s a type of home loan where your EMIs will be lower in the initial years and then increases over time. By this, you will be paying lower EMIs at the initial period of your loan and then higher EMIs at the end of your tenure. These types of home loan will be approved to professionals who have good future prospects in job or employment.

You can also opt for some other income in addition to your salary income and include that to your income tax return. By doing this your income will go up to enhance your home loan eligibility.

Also Read: Form 16 and IT return requirements for a Home loan

Editorial Staff at Yourfinancebook is a team of finance professionals. The team has more than a decade experience in taxation and personal finance.