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Tips to Increase loan amount

Updated on February 26, 2011

Home loans are key for any one who want to realize their dream of having own house in India. But it is pain if the loan is not granted sufficiently. Here are the things to do to increase the eligible loan amount.

Usually every bank estimates the customer's capability to repay the loan amount and accordingly decides on the eligible loan amount for him/her.

The property value is also an important factor in deciding that. usually banks would agree to sanction only 70-80 percent of the property value. If you are not decided on any property yet, you can still get the eligible amount from the bank and can get an understanding about the loan amount.

If both husband and wife are working, they can show their income together to increase the loan.

Try to increase the loan period, so that EMI will be reduced and the loan amount can also become more. Usually banks would allow a period of up to 20-25 years.

Mention about your extra income to the bank such as the house rents which you would be already getting from your own house etc. Deposit them in a separate account and use that as another source to pay your EMI. So the bank may consider increasing your loan amount.

If you are already having some small debts, try to clear them up.

Sometimes, the bank and the customer relationship would decide about any discount you may be eligible for. For example, you may get a discount of 0.5% interest if you take the loan from the bank in which you hold your salary account.

The main thing at last, ensure that you don't have any problems with your credit score, Clear all your dues in time from at least last 6 months.


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