Indian Bank Home Loan Eligibility

The Indian Bank is a high performing top-level government-owned bank in India. The bank was established in 1907 in Chennai for offering various financial services. It is one of the banks which has also established overseas branches and provides its products across borders.

Getting your own house is an aspiration that a lot of people have. With the growing property rates, it's difficult to purchase property with no financial backing. Home Loans provide a great solution for people looking to fulfil their aspiration of a self-owned house. Indian Bank provides such Home Loan solutions for people so they can avail the financial capital required so that their aspirations are met. Indian Bank provides personalised service for Home Loan borrowers and can set up customised plans according to the individual needs.

Below are some eligibility criteria to avail a home loan in Indian Bank.

• The borrower must be an Indian National or a Non Residential Indian (NRI)
• The borrower must be either a self-employed individual or a salaried employee
• Home Loan can be availed for purposes like purchase of property, plot or construction, etc.
• The borrower's age must be between 18 - 70 years

Below are the features of a Home Loan in Indian Bank:

You will have to submit the relevant documents along with your Home Loan application in order to get your loan application cleared.

• Duly filled application form with the relevant fields.
• Identity and residential proof:
• Aadhar Card
• PAN Card
• Voter ID Card
• International passport
• Telephone Bill
• Electricity Bill
• Proof of income:
• 3 months of salary statement(for salaried employees).
• Business existence certificate
• 6 months of bank statement
• 3 years of profit/loss statement
• 3 years of Income Tax returns(for self-employed individuals)
• Other documents:
• Processing fee cheque
• 2 passport sized photographs

Note: This is not an exhaustive list. Indian Bank can ask for other essential documents as well.

Even if the applicant meets all the eligibility criteria mentioned above, the loan application can still be rejected based on some factors mentioned below:

• Credit score:

Having a good credit score is very crucial to getting a loan disbursed. Credit score is an indication of your financial stability and confidence. It shows how financially prepared you are and how you have handled your finances so far. A good credit score can give you great points on your loan application

• Existing liabilities:

Indian Bank needs to ensure that the borrower is able to repay the loan without any doubt. So, in case of the borrower having any existing debts to pay off, there is a small chance that your loan application will be rejected. You will have to make sure to clear off any or all existing debts before you can apply for your Home Loan. In case you cannot clear it off, you will need to be able to present that you will be able to pay for the instalments of both loans. This is also true if you have signed as a guarantor for someone else

• New business holder or new employee:

Banks require you to be financially stable to pass your loan application. That is why, if you have just started with your business or just joined a new workplace, it will reflect negatively on your application. Indian Bank asks for 3 months of IT returns as well and 6 months worth of proof of Income. That's why it is safer to have a couple of years of experience before you can apply for a loan

• Low take home salary:

Even if you have an appropriate monthly income, your loan application can still be rejected if you have a lower take-home salary. The banks will check all your liabilities and if you have very little left after paying off your liabilities, your application won't pass through. Indian Bank requires that the anticipated EMI should be not more than 40% of your take-home salary

• Employer not approved:

Indian Bank has a pre-approved list of employers. These are employers that have been thoroughly vetted and considered safe and reliable. If the applicant's employer is not present in this list, there is a chance that the loan application might be rejected

• Property issues:

The property to be purchased is usually the one which is taken as mortgage for the Home Loan by Indian Bank. This is why the property will be thoroughly checked by the bank. The bank will ask for all original documents related to the property and if they find any issues with the property, the loan will likely be rejected. It is important that the property is verified and check properly

• Missed payments:

If the applicant has missed any EMI previously or has been late for any kind of payments, it is going to reflect badly on your credit report. Missed payments have a negative effect on your credit score and if your credit score gets lowered, your chances of getting your loan disbursed are reduced.

Even if you feel that you have satisfied all the eligibility criteria, there is still a minute possibility that your loan is rejected. This can be due to many reasons and the fact is that the decision is entirely of the bank. What you can do is to make sure that your claim is as strong as possible. Below are mentioned some factors that can affect your Home Loan application.

Get a complete financial assessment done:

Getting a clear view of your financial history and status is very important before you apply for a Home Loan. It is wise to know exactly what liabilities you have as opposed to your income sources and just how much of a disposable income can you spare without inconveniencing yourself

Credit report:

When you apply for a Home Loan, your entire financial history is checked out by the banking officials. Every previous credit utilization and repayment is checked to get an overview of your financial stability. So, before applying for a new loan, it is advisable to check your updated credit report. By doing this, you will be aware about your credit score as well. To avail any loan from a bank or financial institution, credit score plays as one of the most important factors.

Have a co-applicant:

If you apply for a Home Loan jointly with someone, your chances of getting your loan application accepted is significantly higher, especially if your co-applicant has a good credit score. The income of your co-applicant gets added to your total income and both of you become responsible for repayment. This divides the burden of repayment as well and also gives the bank a little more confidence in your loan application

Have a thorough application:

Home Loans are usually high amount and high tenure loans. The repayment window is generally 20-30 years and you have to keep into account that you will have to pay EMIs consistently till that time. This means that you have to make sure that the loan amount you apply for is something that you are going to be completely comfortable with for a long term basis.

EMI (Equated Monthly Instalments) stands for the monthly amount the bank will get from the borrower as repayment for the loan disbursed. The EMI amount depends on the principal amount, the rate of interest and the tenure. Usually, the longer the tenure, the high the rate of interest, and the low the EMI amount. This is because your total amount is divided as per your tenure. EMI amount is crucial as this is the amount that you will have to pay to the bank consistently every month and you have to make sure that you still stay financially secure long term.

EMI amount is calculated as shown below:

E = P.r.(1+r)^n/((1+r)^n-1)

Where E = EMI anount

            P = Principal loan amount

            R = rate of interest

            N = Tenure in months

The calculation for the EMI can be fairly complicated. This is why a lot of vendors provide an easy to use EMI Calculator to help the borrower get a for idea of the EMI he will be required to pay. The EMI Calculator also makes it easy for the borrower to check and determine the ideal combination of the interest rate and tenure the borrower is list comfortable with. The EMI Calculator can be an important tool to help with your loan application process.

• Determine the loan tenure - Interest ratio best suited for your needs
• Easy way to calculate EMI amount without doing complicated calculations yourself
• Easy to use service which requires just a laptop/mobile and an internet connection
• Quick response for EMI calculation
• Freedom to choose the plan as per the EMI amount you are most comfortable with