Loan Matters
Getting a loan from a bank is not always straight forward. Banks take into account many factors while sanctioning a loan. Banks criteria determines wheher you are eligible for a loan and if so what is the amount of loan you may be able to get. If you are aware of these parameters, the process would become easier for you. One word of caution, what we have described here is for a general idea. We urge you to do your own research and be prepared
Background Check
The information you provide on your loan application is verified by the loan sanctioning authorities. They may verify this information by calling your references, employers, checking bank's records and so on. If they find discrepancy in any information, this could be cause for rejection of your application. Your credit history is also plays a part. Banks may be able to look up information concerning repayment of any previous loans that you may have taken.Therefore, you need to make sure that you have provided accurate information while filling out your loan application
Repayment Capability
Your income level, net income, liabilities would determine the amount of loan you are ultimately eligible for. Banks would look for a minimum fixed income from a steady source such as employment with a reputed organization. Your liabilities also play a part. If you aleady have loans for which you are making payments, it would diminish repayment capability.
Personal Profile
Your profile is an important factor. Your academic qualifications, profession, employment play a part in the process of loan sanction. Other factors such as number of dependants and assets owned by you also influnce the process. If you have a large number of dependents, it would affect your repayment capacity.
Age
Age does play a significant part especially for the tenure of the loan. The applicant and co-applicant (if there is one) must be adults. The loan perid is would be shorter, if any one of the applicant is close to retirement age. On the other hand, if all the applicants are young, the tenure of the loan could be longer. The period of the loan would detemine your EMI.
Property Criteria
Property Location - If the property is at a good location your chances of getting a loan is better. Banks may also not consider giving loan for properties in cretain locations.
Built-up area - Banks may have criteria not to give loans for a properties under a certain built-up or carpet area
Age of Property - For relsale, property above 50 years old may not be eligible for bank loans.
Property title - Properties must have clear title with no lien and encumberances
Pre-approved Builders
Sometimes, banks may have a list of pre-approved builders and loans for their properties may be more easily sanctioned.