Have you ever been hounded by telemarketers urging you to apply for a loan? Calls, text messages, WhatsApp or even meeting you in person, representatives of financial companies leave no stone unturned when it comes to convincing you to take a loan.
But how is the loan application processed? Do lenders really bend over backwards to hand you the loan cheque? It does not quite work that way.
Yes, sales personnel employed by financial institutions are aggressive in their attempts to lure you. They have to be; their commissions depend on it. And if one takes the bait and applies for a loan, the situation is likely to change by the time the application is processed.
It is the borrower who is expected to satisfy the credit parameters and fulfil all the eligibility criteria for the Home Loan.
Let’s get down to the basics. What do you think is the main eligibility criteria for taking a Home Loan?
The simple answer is the borrower’s ability to repay the loan.
This means the income of the loan applicant must be enough to pay the instalments on time. The lender provides a schedule for paying the equated monthly instalments (EMIs).