The commercial capital of Kerala, Kochi’s economy is mostly concentrated on business with an inclination towards the service sector. Major industries dominating the port town are shipbuilding, construction, manufacturing, chemical industries, IT, banking and health services.
Owing to 11.4% of Kerala’s GDP, Kochi’s economy is booming for the past decades with minimal state intervention and less stringent laws. Considering the immense potential it holds in the employment sector, Kochi has witnessed a steady influx of migrants in search of better opportunities.
This has also prompted the acquisition of residential property in this port town. Now, with the availability of a home loan in Kochi from leading financial institutions and NBFCs, the real estate market is booming as well.
So, if you are considering availing housing loans in Kochi, here are some of the things you need to look into –
- Job stability
For a home loan online apply, financial institutions take your job stability as their primary criteria for loan approval. If an applicant has frequented too many jobs, it reflects poorly on his loan application.
To be eligible for a home loan in Kochi, lenders prefer applicants who have been working in a company for at least 3 consecutive years. Keep in mind, even if the applicant is employed at a reputable firm, the lender still holds the right to reject his/her application, provided the firm seems unstable.
- Credit score
To receive the best home loan offers, the applicant must hold a higher CIBIL score of 750 or above and exhibit an exceptional repayment track record.
This reflects your creditworthiness and fewer chances of defaulting, thus increasing your chances of loan approval. Possessing a low credit score is one of the crucial reasons why lenders may reject your home loan application.
- Existing debts
If you are considering a home loan in Kochi, and you already have existing loans to repay, your application is likely to be rejected. This is owed to the excessive liabilities you have at present, and thus have chances of defaulting on your home loan.
You can improve your housing loan eligibility by applying for a joint home loan where your co-applicants income and credit history will be taken into account.
You must always use a home loan EMI calculator to check if the credit amount is affordable for you or not.
If you are considering joint home loans, pick lenders that offer simple-to-meet eligibility criteria and nominal paperwork. This will ease-up your chances of procuring this advance and at competitive joint housing loan interest rate.
- Past rejected loan applications
Credit bodies like CIBIL take loan application rejections into account, which is reflected in your credit record. Thus, it is advisable to take a look at your credit history and check for discrepancies before applying for housing loans in Kochi. This will allow you to inform the credit authority to correct the mistakes and ensure there are no possible reasons for loan rejection.
- Type of property as security
Financial institutions and NBFCs require securities to approve a home loan in Kochi. Keep in mind that lenders do not take all types of residential properties as securities. Therefore, the applicant should ensure that the property has a good resale value and is constructed by trusted and reputed builders.
Lastly, keep the property documents at hand, to avoid housing loan applications from getting rejected. You have to provide your property documents, income proof, identity proof, address proof, and additional relevant documents when you apply for a home loan in Kochi.