Indiabulls Home Loan Eligibility

Indiabulls offers home loans to both resident Indians and NRIs (from Dubai and UK) aged between 21 and 65 years. Existing home loan borrowers from other banks/housing finance companies (HFCs) can also opt for home loan balance transfer to transfer their loan to Indiabulls at lower interest rates. Both salaried and self-employed applicants are eligible to avail Indiabulls home loans. Loan applicants can improve their home loan eligibility by including co-applicants (spouse and close family members) for the loan provided that the co-applicant is also co-owner of the house.

Improve your Credit Score

While Indiabulls has not explicitly mentioned the cut-off credit score for their home loan applicants, top lenders usually consider credit score while determining the home loan eligibility of their prospective homeowners. Credit scores of 750 and above are considered as creditworthy by most lenders. Thus, home loan applicants with high credit scores have a much higher chance of getting their loan applications approved. Furthermore, it can also help them get lower home loan interest rates as many lenders have started setting the interest rates based on their loan applicants’ credit scores.

Home loan applicants can maintain or improve their credit scores by following healthy credit practices like repaying EMIs and credit card dues by the due date, avoiding multiple loan or credit card applications within a short span of time, monitoring the loans guaranteed or co-signed by them, etc.

Loan applicants should also review their credit reports at regular intervals to identify any errors present in these reports. They can highlight any mistakes in the credit reports to their respective lenders or credit bureaus for correction. A rectified credit report will automatically enhance the loan applicant’s credit score and help improve his 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

Indiabulls 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 loan from Indiabulls 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

Indiabulls 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  

Indiabulls 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.