Need to borrow more?

There is abundance of home loan lenders in the market but still a borrower can sometimes find it difficult to find a lender that is willing to finance the required amount because the loan amount that he requires exceeds his loan eligibility.

Lenders follow very stringent procedure while lending loan to the borrower and that includes careful and precise evaluation of the borrower in terms of his financial state, lenders prefers a borrower with good credit history as there is much less involved in lending to such a customer as compared to a defaulter; and since the lending rates have increased the lenders tend to lend to the applicants that they are sure about.

Sometimes even if a borrower has a decent credit history, borrowers won’t lend to such a borrower due top his loan eligibility. The loan eligibility of a borrower is determined by the total inflow of funds and his total commitments. But there are several ways by which a lender can improve his loan eligibility and can borrower loan from the lender his wants to.

The first thing that a borrower can do is to pay all the loans and other commitments as then the amount that he can pay as monthly installment will increase and hence the amount that he can avail as home loan.

The most effective option is to club income with relative. The applicant can club his income with his wife, spouse, mother, and father. The bank will then decide the loan eligibility of the borrowing by clubbing both the incomes. This is the most convenient option that a borrower can go for.

Other option includes increasing the loan tenure, if a person opts for it then the amount of EMI that he needs to pay will decrease and hence the capacity of paying installments will increase resulting in an increase in his loan eligibility.

If a person is in his initial stage of his career and expects increase in the fund inflow in near future than step-up loan is a very suitable option for him. Under this loan scheme, initially the borrower has to pay lower EMIs but the amount of EMIs increases with the time period, it also helps in enhancing the borrowing capacity of a borrower.