As per the reports released by the Housing Finance Companies (HFCs), an average of Rs.25,000 crore home loans have been disbursed in the 4th quarter of the year 2018. In the 3rd quarter of the financial year 2019, a 14% growth of interest rate has been witnessed on a year-on-year basis. Subsequently, on a quarter-on-quarter basis, a growth rate of 3.5% has emerged. The last 5 years have compounded annual growth of 19% in the housing sector loan.<\/p>\n

Owing to the increased demand for houses particularly construction of houses on a vacant plot, financial institutions have made available home construction loans<\/a>. This secured loan allows diverse expenditures to be easily covered without any hassle.<\/p>\n

Home loans are easily accessible financing options in India. Nonetheless, in order to get an instant approval for such a loan, specific guidelines are to be followed.<\/p>\n

Eligibility to get a construction loan for a home with ease<\/b><\/p>\n

Fulfilling the following essential factors increase the prospective borrower\u2019s chances of approval of home loan-<\/p>\n

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• Age bracket- <\/b>Salaried individuals should be at least 23 years old and not exceed 62 years of age. For self-employed individuals the age-bracket considered is between 25 and 70 years.<\/li>\n
• Credit score- <\/b>A clean credit history is essential for easy approval of a loan. A CIBIL score of 750 is considered to be ideal to avail a home loan. This ensures the financial institutions of the borrower\u2019s repayment capability. Default payment can be avoided if the EMI calculator is used by the borrower.<\/li>\n
• Occupation- <\/b>The individuals must either be self-employed or salaried with a regular source of income. Salaried applicants must have a minimum of 3 years of work experience. Self-employed individuals should complete at least 5 years of business.<\/li>\n
• Income- <\/b>In general, salaried individuals should have at least Rs.20,000 as monthly income in towns and cities. In metro cities, a minimum salary of Rs.25,000 is required to avail home loans. Applicants can select their home loan repayment options based on their eligible income made available by the financial institutions.<\/li>\n
• LTV- <\/b>Loan amount is provided in accordance with the market value of a property. If the maximum down payment is made against the construction loan interest rate, a home loan can be availed quicker.<\/li>\n
• Documents-<\/b> Property documents, identity proof including PAN card and Aadhaar card and address proof should be provided for instant approval of the loan. Salaried individuals should provide Income proof including Form 16 and self-employed individuals should present their financial statements.<\/li>\n<\/ul>\n

  It is advisable to check your eligibility via a home loan eligibility calculator before availing the loan.<\/p>