With ever-increasing real estate prices, most home buyers rely on loans to purchase their dream house. You can become a homeowner by approaching a lender who can offer you the funds required to purchase the house that you choose. Clix Housing is a reputed NBFC that offers home loans of up to ₹ 2 Crore. However, lenders consider numerous factors before they approve the home loan amount you applied for.
Lenders judge your repayment capacity, income, credit score, credit history, and your other loans before they approve your loan amount. So, if you are planning to apply for a home loan and wondering how much loan amount can you get, here are a few factors on which your approved home loan amount may depend.
1. Your Income
The most crucial factor that lenders consider while approving your loan amount is your income. Based on your monthly remuneration, the lenders determine if you can pay your EMIs on time or not. To apply for a Home Loan with Clix Housing, you must be a salaried employee or a self-employed professional and you must have an annual household income of at least ₹ 3 lakhs.
You may use a home loan EMI calculator to get an estimate of your EMIs and decide if you can easily afford them every month within your budget. Ideally, the total of all your EMIs should not be more than 30-40% of your monthly income.
You must also be careful while selecting your loan tenure. Shorter tenure will have bigger EMIs, but you will pay off your loan faster and you will also save money on your total outgo. Longer tenure may have smaller EMIs, but you will be paying for a longer duration and your interest outgo will also be high by the loan term-end.
So, the loan amount you receive depends on your income. The lenders won’t lend you an amount that you can’t comfortably pay within your income.
2. Your Repayment Capacity
While your income determines how much amount of loan amount you may get, it is not the only factor considered. Before you apply for a home loan, it’s important to calculate your regular expenses, including credit card bills, utility bills, other EMIs you are paying at present, etc. Depending on these, you will be able to estimate how much money you are left with after fulfilling all your financial obligations. Accordingly, you will arrive at an EMI amount you can afford to pay every month.
Your repayment capacity largely depends on your spending habits. If you keep your expenses under control, you may be able to afford a higher EMI in less income as compared to a borrower who earns more than you but spends money extravagantly.
3. Your Credit Score
The lenders give utmost importance to your credit score. It is a 3-digit score based on your credit history and repayment habits. A home loan is a secured loan that can last up to 25 years. Since it is a high-value loan, lenders need assurance that you will pay your EMIs on time and not default on them. For this, they look into your credit score, which helps them to understand your repayment behaviour.
A high credit score of at least 725 assures the lenders that you are a creditworthy borrower who is responsible towards repayments. The lenders may even sanction a higher home loan amount based on your credit score. You must check your credit score online before applying for a home loan, as applying with a low credit score may lead to loan rejection and may further reduce your credit score.
4. Your Age
The lenders consider your age before sanctioning your home loan amount. They prefer borrowers who are in their earning years with a stable income. For Clix Housing’s home loan, you need to be at least 22 years at the time of loan application, and maximum 65 years by the end of the loan term. If you do not fall into this age group, you may not get the loan amount you applied for.
5. Your Documents
NBFCs have made it easier to apply for loans with simple eligibility conditions and minimal documentation requirements, here are a few documents you need for Clix Housing’s home loan:
- Completely filled online application form
- Passport-sized photograph
- Identity Proof- Aadhaar card, Pan card, or Government ID for government employees
- Address Proof- Aadhaar card, passport, voter ID, driving license, or utility bills for the last 2 months
- Salaried individuals need to provide these financial documents:
- Last 3 months’ salary slip
- Last 6 months’ bank statements showing salary credit
- The latest copy of Form 16
- Self-employed individuals need to provide these financial documents:
- Business profile
- Last 6 months’ bank statement
- Last 2 years’ Income Tax returns & financials, including balance sheet, Profit and Loss accounts
The loan amount approved for you depends on what the above mentioned documents show about your income and credit history. The stronger your financial documents are, the higher the loan amount you are entitled to get.
If you are looking forward to applying for a home loan. Go ahead and apply with Clix Housing, we offer home loans of up to ₹ 2 crores, which you can repay over a loan period of up to 25 years
You can also reach out to us at email@example.com or call us at 1800 200 9898