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Owning a permanent home of our own gives anyone a sense of financial security. But buying a home from your savings is a bit difficult. You need to depend on home loans. Banks and housing finance corporations offer these loans. Indian residents and NRIs can apply for this loan. The lender checks if you are eligible for the credit before approving it. If you are looking to apply for NRI home loan, here’s how you can enhance your loan eligibility.

  1. Maintain a decent credit score
  2. Clear existing debts 
  3. Pay bills on time
  4. State any additional income 
  5. Consider applying jointly 

1. Maintain a decent credit score

Whether you are an Indian citizen or an NRI, lenders verify your credit scores first and foremost, even before considering your application for the loan. Therefore, it is vital to make sure you have good credit scores. To fit into your lender’s NRI home loan eligibility conditions, you must make sure that your credit scores go above the minimum 750+ points out of a total of 900 points. High credit scores are a sign of reliable credit repayment behaviour, so you must try to raise the score before applying for the loan.

2. Clear existing debts 

An excellent way to improve the credit score is to clear off any existing loans. As an NRI, you may have taken an investment in your country of residence. The lender will check all your current loans, plus those made abroad. If they are not paid on time, or if you have defaulted on any payments, your application may be rejected. While applying for NRI housing loans, it is best to ensure all unpaid loans are repaid in full.

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3. Pay bills on time

Credit card debt is also viewed as a kind of loan. To increase your eligibility, you must ensure that you repay all your credit card debt every month and not just the bare minimum required. If credit card payments are not paid on time, and you pay high interest on this debt, the lender will be suspicious about the loans being approved.

4. State any additional income 

You are required to mention all your revenue sources when you send out your loan application. It may be earnings from equity transactions, fixed deposits and even rent from another property that you own. Also, if your employer offers a bonus or benefit over and above your monthly net wage, you can mention that income. This salary is called variable pay. The lender considers it as added income, which can help enhance your NRI house loan eligibility.

5. Consider applying jointly 

If you can display high net monthly income, the chances of having your home loan approved increases. If you have a working spouse or another employed member of the family, you can list these individuals as joint account holders. The lender will consider the salaries of both applicants. You should also rest assured that if one borrower is unemployed for a certain period, the other will pay the EMI loan. Remember that when applying for the loan, the joint borrower must also show strong credit ratings and must have no outstanding debts.

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PrajaktaGaud

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