Apply for a housing loan Kerala and make your dream come true to live in this serene state of Kerala. Top banks and NBFCs offer home loans in Kerala starting at a rate of interest of 8.50% per annum. The maximum period for loan repayment is up to 30 years. For processing each home loan application, the lender may charge a processing fee between 0.25% – 0.50% of the loan amount. The best home loan in Kerala offers up to 90% of the property value as the loan amount to eligible borrowers.
Eligibility Criteria for Home Loans in Kerala
So, what do banks and NBFCs consider when granting home loans to applicants in Kerala? They look for general parameters like the applicant’s age, nationality, source of income, minimum income, and credit history.
Eligibility
Home buyers must know the eligibility criteria to get a home loan. The important clauses and rules are usually the same for most lenders, and if they are eligible for one then they are for the rest too. This is an important step of the home loan process as it lays the foundation. We discuss these below.
- Credit Score
The credit score reveals the borrower’s capacity to repay the loan on time. A higher credit score is favorable as it gives the lender confidence in the borrower’s ability to repay. If either of them has a score of 750 and above their chances of getting the loan are high.
- Income and Employment
Lenders look for borrowers with stable and sufficient income to repay the loan. A stable employment history is preferable as stability assures regular income and better career prospects. Loan applicants may have to share their employment records like salary pay slips and work experience certificates to prove their income sources.
- Down Payment
All lenders expect a down payment of 10 to 20 % of the property value. If the borrower can make a higher down payment, they have the financial power to repay the loan which is a good sign by the lenders. Depending on their salary the borrowers can decide on the down payment amount.
Tips for improving home loan eligibility:
- Improve Credit Score
The best way to improve the credit score is to repay any outstanding loans and pending credit card bills. The credit card bill should be less than 30% of its limit. Either of them can opt for pre-approved eligibility by meeting all the criteria in advance.
- Income and Financial Stability
The borrower’s income should sufficiently exceed the EMI payouts. In case the income is lower, they can generate additional income through other sources. This will reflect a healthy income statement increasing their chances of getting the loan.
- Save For Higher Down Payment
A higher down payment will reduce the loan amount and build credibility with the lender at the same time. The home buyers can achieve this by creating a long-term dedicated savings plan.
- Co-applicant
The spouses or trustworthy relatives like siblings or close family members can become a co-applicant if they have a good credit score, increasing the chances for loan approval increase. Usually, lenders prefer the co-applicant to be the spouse or a family member.
This home loan guide will help first-time home buyers in being eligible so that the home loan is sanctioned quickly easing the home buying process.
Note: Applicants are encouraged to declare any additional sources of income besides those mentioned in the table above to boost their chances of getting a home loan approval.
• A majority of banks and NBFCs offer home loans in Kerala to Indian residents, while some also offer to NRIs and PIOs
• The eligible age limit for an applicant to apply for a home loan in Kerala is between 21 years to 65 years
• Salaried applicants should possess a minimum work experience of 2 years, and the self-employed ones should have a minimum work experience of 3 years in a business
• Kerala banks prefer offering home loans to applicants with a credit or CIBIL score of 750 or more
Note:These criteria are subject to variation from one bank to another. It is recommended that you check with the specific bank you are applying to for a home loan for its eligibility requirements.
