Everyone’s house may be a dream. It provides financial security, relief in tax, emergency network and living consistent with your choice.
If you are doing not have the cash to shop for a house, then banks or non-banking finance companies (NBFCs) offer you long-term loans. By paying a hard and fast amount to the bank or NBFC as a monthly instalment, you come back the principal amount and interest of the loan over a period of 10, 20 or 30 years.
The eligibility for taking a home equity credit is decided as follows:
- A person can get a loan of 60 times his total monthly income.
- If you’ve got taken another loan (car or consumer loan etc.) which is current, then the lending bank will consider the quantity of the house loan after deducting its monthly instalment from your income.
- If you would like to require a home equity credit and your credit score isn’t correct otherwise you have defaulted within the payment of any previous loan/loan, the bank can refuse to offer the loan.
- You can fix your eligibility by taking a loan for an extended period.
- If you’re a salaried employee otherwise you are a personal business person, then the eligibility of loan is different for both.