Central Bank of India Home Loan Eligibility

Central Bank of India Home Loan Eligibility Criteria

Central Bank of India Home Loans can be availed by eligible borrowers for financing their home purchase, home construction and plot purchase. Loan applicants use the proceeds of the home loan for the purpose of overdraft, home renovation or home extension. Existing home loan borrowers from other banks/housing finance companies (HFCs) can also opt for home loan balance transfer to transfer their loan to Central Bank of India at lower interest rates. The bank also provides Cent Home Lakshmi, a home loan scheme solely for women applicants.

The eligibility criteria set for availing Central Bank of India Home Loans are as follows:

• Resident Indians and NRIs, both salaried and self-employed, are eligible for availing home loans. Groups of individuals, including co-operative societies, with a legal, identified and regular source of income can also apply for the home loan.
• Any loan applicant can apply either individually or with up to 3 other eligible persons including spouse, children, parents or siblings.
• The loan applicant’s age must be 18 years or above on the date of application
• The bank decides the EMI/NMI ratio for a home loan applicant based on his net annual income:

Net Annual Income	EMI/NMI Ratio
Up to Rs. 1.2 Lakh	20%
Above Rs. 1.20 Lakh up to Rs. 3 Lakhs	30%
Above Rs. 3 Lakhs up to Rs. 5 Lakhs	55%
Above Rs. 5 Lakhs up to Rs. 8 Lakhs	60%
Above Rs. 8 Lakhs up to Rs. 10 Lakhs	65%
Above Rs. 10 Lakhs	66.67%

Tips to Improve Eligibility for Central Bank of India Home Loans

Improve your Credit Score

The minimum credit score for home loan applicants of Central Bank of India are as follows:

• Cent Home Loan

Name of CIC	Minimum Score
Transunion CIBIL	675
CRIF	570
Experian	700

• Cent Grih Lakshmi

Name of CIC	Minimum Score
CIBIL	775
CRIF	680
Experian	775

• Cent Home Loan Scheme for purchasing 3^rd or 4^th house/flat

Name of CIC	Minimum Score
CIBIL	675
CRIF	675
Experian	700

Like many other lenders, Central Bank of India also sets its home loan interest rates based on the credit scores of loan applicants. Prospective home loan borrowers with higher credit scores can get lower interest rates on their home loans.

Home loan applicants can maintain or improve their credit scores by following healthy credit behaviour including repaying their EMIs/credit card dues by the due date, avoiding multiple loan or credit card applications within short durations, regularly monitoring any loans guaranteed/co-signed by them, etc.

Additionally, loan applicants should regularly review their credit reports to identify any errors or incorrect information present in these reports. They can highlight the mistakes in their credit report to their respective lenders/credit bureaus for correction. Rectified credit reports enhance the loan applicant’s credit score and help improve their home loan eligibility.

Home loan applicants with low or no credit scores can also avail the Step Up Credit Card co-branded with SBM Bank India Ltd. to build or improve their scores. It is a lifetime free secured credit card issued by Paisabazaar.com against the fixed deposits of SBM Bank.

Select a Longer Home Loan Tenure

Central Bank of India home loans have tenures of up to 30 years, with the loan tenure extending till the borrower’s retirement age or till he is 65 years old, whichever is earlier. Lenders usually approve home loan applications made by individuals whose total EMI obligations, including their proposed home loan’s EMI, does not exceed 50% – 60% of their total gross or net monthly income. Loan applicants availing home loans from Central Bank of India Housing Finance or any other lender can opt for longer tenures to reduce their EMI burden, thus improving their repayment capacity and increasing their chances for home loan approval. Prospective home loan borrowers should also check the home loan EMI calculator to determine the optimal home loan tenures and EMIs based on their repayment capacity.

Adding a Co-Applicant

Central Bank of India home loan applicants with insufficient monthly/annual income or low credit scores can improve their home loan approval chances by adding any earning family member as a co-applicant. Doing so makes the co-applicant equally responsible for timely loan repayments, which reduces the credit risk for the home loan lender.

Adequate Funds for Down Payment  

Central Bank of India Housing Finance has not disclosed the loan to value (LTV) ratio for their home loans. However, RBI has restricted home loan lenders to finance up to 90% for home loans of up to Rs. 30 Lakhs, up to 80% for home loans of above Rs. 30 Lakhs and up to Rs. 75 Lakhs & up to 75% for home loans above Rs. 75 Lakhs. The home loan applicant is responsible for arranging the remaining component through down payment or margin contribution. As higher down payment lowers the credit risk for home loan lenders, loan applicants can increase their chances of home loan approval by making higher down payments.