Banks and non-banking finance companies such as Bajaj Finserv offer home loans in India. For getting the best deals, borrowers must look at various lenders, and compare the home loan interest rate they offer, along with all other services the offer. They also have different home loan eligibility and the borrower must make sure they qualify before approaching the lender.
Although home loans may bring joy in the form of a house in which the borrower and his/her family can stay, it may also cause some anxiety, as the process of obtaining a home loan in India can be lengthy and complex.
Although the applicant may be suitable for home loan eligibility, the number of loans an individual can take in India may be confusing. The good news is, a borrower can have as many home loans in India as he or she wants, and there is no law barring them from servicing only one home loan at a time. Therefore, if a borrower wants to purchase say 25 properties at a time, he or she can take different home loans for all of them from 25 different lenders.
However, the borrower must keep in mind their repayment capacity. Since lenders sanction loans based on the repayment capacity of the borrower, this becomes the sole criterion for obtaining a large number of the best home loans for the borrower.
The CIBIL score for home loan must be very good, as this is a measure the lenders look at to assess the past financial behavior of the borrower.
If the borrower has been seeking several credit cards and loans in the past, their credit score is likely to be poor. This may affect their eligibility for the best home loans. Therefore, if the repayment capacity of a borrower is not adequate, the lender will rightly refuse to grant a home loan in India.
If the borrower has adequate repayment capacity, and is eligible based on his income, they will offer a loan. The borrower must be a genuine investor in property, and have a good track record, with clarity in all transactions in all cases. Lenders will check if the borrower fulfills the above criteria, there is a good chance they will sanction the best home loan.
When a borrower seeks a home loan in India, lenders will look at a number of factors such as savings, income, age, qualifications, nature of work, work experience, etc. They will also look at the number of loans the borrower is presently servicing to assess their repayment capacity. After considering all the above issues, the lender will decide on the borrower’s home loan eligibility, and the amount of the home loan they will sanction.
Borrowers can avail tax benefits on loans they are servicing at a time. They can also buy property in another city, and the tax benefits will still be applicable. Therefore, with a good CIBIL score and adequate repayment capacity, a borrower can take any number of the best home loans.
Also Read: How Much Home Loan can get on Salary?