Home Loan

Yes, it is mandatory to have a co-applicant for a home loan. This requirement is in place to ensure that there is a second party financially responsible for the loan, which helps to reduce the risk for the lender. If the property is jointly owned, then both parties must be co-applicants. If the property is solely owned, then any member of the immediate family, including spouses, parents, children, or siblings, can be a co-applicant.

Yes, an upfront, non-refundable processing fee is required for all home loan applications. The processing fee varies depending on the loan amount and is typically up to 1% of the loan amount plus applicable taxes.

An extended tenure home loan is a type of mortgage that allows borrowers to spread out the repayment of their loan over a longer period, typically 25 years. This can result in lower EMIs, making it easier for borrowers to afford the loan. However, it also means that borrowers will pay more interest over the life of the loan. Extended tenure home loans are often a good option for borrowers who are on a tight budget or who have limited savings for a down payment.

Unfortunately, it's not possible to get 100% financing for a home loan. Banks and financial institutions don't lend the full property value. They set a margin, which is the percentage they cover. For instance, if the margin is 10%, the bank covers 90% of the property value. This means you'll need to make a down payment for the remaining amount, which is 10%, to cover the rest of the cost.

If your home loan application faces rejection, consider the following steps:

Review Credit Score: Assess your credit score, addressing any issues that may have contributed to the rejection. Rectify errors, pay off outstanding debts, and demonstrate responsible financial behaviour to improve your creditworthiness.

Loan Amount Adjustment: Reevaluate the loan amount applied for in alignment with your financial capacity. Consider a lower loan amount or explore alternative financing options that better suit your eligibility.

Assess Other Ongoing Loans: Evaluate existing loans and credit obligations. Consider reducing outstanding debts to enhance your debt-to-income ratio, improving your loan eligibility.

Explore Co-applicant Options: Introduce a creditworthy co-applicant, such as a family member or spouse, to strengthen the application. A co-applicant with a higher credit score or stable income can positively impact the loan approval chances.

Employment Stability: Demonstrate stable employment history and income.A consistent employment record enhances your credibility as a borrower, potentially increasing the likelihood of loan approval.

Document Verification: Ensure all necessary documents are accurately prepared and submitted. Thoroughly review the documentation to eliminate any discrepancies that may have led to the rejection.

Seek Feedback: Request feedback from us regarding the reasons for the rejection.Use this information to address specific concerns and take corrective measures for future applications.

Professional Advice: Consult with financial advisors or mortgage specialists for personalised guidance.

They can provide insights into improving your financial profile and increasing your chances of loan approval.

Remember, a rejection doesn't necessarily mean you can never secure a home loan. By addressing specific issues, improving your creditworthiness, and reassessing your financial situation, you can enhance your eligibility for future loan applications.