1. Income
Before answering the question of the cost of a house in Chennai, keep in mind that home loan companies / banks take into account your total income – salary, business income, rental income, capital gains, interest, etc. Loan eligibility.
2. Credit History, Debts and Loans
In India, Sybil (Credit Information Bureau of India) produces scores, which the leading banks rely on to provide home loans to eligible customers looking to buy a home. Generally, the higher the Sybil score, the better your chances of getting a home loan with lower EMI payments per month. According to the Economic Times, as of January 2017, the Bank of Baroda has decided to issue a home loan with interest of 8.35% if the credit score is greater than 760, and many will follow suit. So, hurry to pay off your current debts and credit card bills. Check your Sybil score online for free.
Therefore, your bank will consider the amount of loan payments you make regularly – any educational loan EMIs, car loan payments, credit card bills and other installments. If these monthly payments are high relative to your income (ie, your debt to income ratio is high), then you may not be accepted for a home loan.
