Home Loan Tips: Home loan is not easily available after retirement. Banks are also generally hesitant in giving loans to a retired person. However, if you apply for a loan with a little understanding and preparation, you can get success. Senior citizens have to fulfill a few more conditions to avail a home loan. Today we will tell you some important tips These are the things that will help you in getting a home loan.
Senior citizens should check eligibility based on their age, income and other aspects before applying for home loan. Keep in mind that eligibility varies from bank to bank. Experts believe that the applicant should be such a pensioner in whose case a table pension income is expected during the tenure of the loan. Applicant’s age should not be more than 70 years from the date of application. The loan repayment should be completed before the applicant’s age is 75 years. Think of it as an applicant who has attained 70 years of pension, can only get a home loan of 5 years.
A better option is to add a co-applicant with you while applying for home lane after retirement. By doing this, the risk of the lending institution’s location gets reduced. The co-applicant should be such a person who has a stable income and good credit score. While applying for home loan after retirement, the loan is available but its amount is less. The loan amount increases only when no co-applicant with good earning is joined together. Linking of co-applicent greatly increases the chances of getting a loan. It can be availed at affordable rates for long term.
Keep a low Loan-to-ValueU (LTV) Ratio for home loans and keep your contributionusion high for buying a home. This increases the buyer’s contribution to the property and reduces the EMI. Higher the buyer’s contributionusion lowers the risk of the bank. At the same time, low EMI increases the loan affordability. Both these factors increase the loan eligibility of the buyer.
Secured Loan will help you
Loan taken against the guarantee of any asset is called Secured Yard Loan. The risk of banks is less in the case of CoinYard Loan. The rules for a secured yard loan are a bit softer than for an unsecured yard loan. Loan can be taken against assets like property, goldd, shares, mutual funds or PPF etc.
Good credit score is also important for retired people. Most of the banks and finance zwj;th Institute consider the core of 750 and above to be good
approach a government bank
After retirement, if your income is your pension, then you should apply for a loan in a government bank. Government banks offer pensioner loans for which it can be easy to meet the eligibility criteria. These have slightly lower interest rates than personal loans.