How to Apply for a Home Loan with Low Income?

Everyone dreams of a beautiful home. To finance your dream home, you search for a reliable lender and submit an application to it. The lender evaluates your income, job stability, repayment capacity, and then approves your home loan plea. In this whole mortgage financing process, one of the biggest challenges for the applicant is satisfying the specified income criteria laid down by the lender. If you have low income, your application may get rejected. Puzzled?

The remedy of this problem is that you should apply to the lender, where you meet the home loan eligibility criteria. You can apply with the co-applicant and segregate your risk between you and your co-applicant. Don’t worry; there are schemes that can beat your home loan stress

In this context, let us have a glance on a scheme, where applicants with even bare income can fulfill their housing dreams with convenience. Here, we are talking about IIFL Home Loans’ New Home Loan Scheme (NHLS).

New Home Loan Scheme (NHLS) empowers the average Indian middle-class people in building their dream homes with adequate funding at competitive interest rates. The beneficial/constructive change would enlighten the lives of unreached masses in an unprecedented way. 

Know 5 Important Things about NHLS –

1. Indian nationals - be it salaried or self-employed, can apply for this scheme. Resident Indians with low income can apply for this scheme, subject to terms & conditions*

2. The scheme offers freedom from structured income documents. Income proof documents along with identity documents like Aadhaar Card is required to apply for this scheme. Easy documentation Process!

3. The maximum home loan amount can be up to 20 lakh. Home Loan would be financed for maximum up to 20 years, subject to eligibility assessment by the housing finance company.

4. Co-applicant is required in the property registration and home loan structure.

5. The applicant can apply for the scheme even at 0/nil credit history. Generally, a home loan is not possible if your credit score is below 650.

The government of India aims to build 2 crore new houses under its progressive mission “Housing for All by 2022”. NHLS is a leg up to this affordable housing mission. It will empower people to purchase their home.

So, we have seen how the loan is possible even at low income. In this regard, some points need to be taken into consideration while making an application for home loans –

1. While you are going through the mortgage financing process, don’t add up any loan.

2. If possible reduce your existing liabilities.

3. If you have to pay the E.M.I of any running loan, ensure to pay on time. By paying the installments on time, you will enhance your credit score.

4. Don’t change your job or profession. Sticking with a job will boost the lender’s confidence in your repayment capacity.

5. Keep the down payment ready with you; this will help in smooth home loan processing.  

*Disclaimer – Loan eligibility would be commensurate with the customer income as assessed by the housing finance company as per its credit norms.