Apply for Home loan in India is the life force that bridges our dreams of owning a home to reality. But to avail a home Loan, one has got to qualify for it. All hosing financing companies follow some certain guidelines to seek out the creditworthiness of an applicant. Among many, one criterion of home Loan eligibility is – employment.
Lenders check the employee status of the applicant before sanctioning a home loan. If you’re a salaried employee, getting a loan becomes easy as you’ve got a hard and fast source of income. But if you’re a contract based employee, the eligibility checking takes a couple of more steps. The house loan applicant should check home Loan EMI before applying for a loan. Doing this helps you propose your finances better way. The lender takes a couple of more measures to seek out the loan eligibility of the applicant. Our today’s article is an insight on how lenders evaluate the creditworthiness of a contract based employees.
Contact-based employees also can avail for Apply for Home loan in India . But not altogether conditions. Here we’ve put up some scenarios to know the house loan availability of contract based employees.
Joy, a young professional who has just completed his graduation and joined employment on a contract basis. Though it’s his first job, he’s earning tolerably to satisfy the eligibility criteria of a home loan . In such conditions getting a loan seems to be difficult as he’s in his first job. No prior work experience may go as a negative impression on the lender. As Joy has no work experience, the termination of the contract may leave him unemployed. So, in those situations, the application has high chances of getting rejected.
Jiten holds his degree in Chartered Accountancy and joined his first job as a contract based employee. If Jiten applies for a home loan, there’s a high chance of getting approval on the house loan due to his high qualification. In such situations, lenders generally assume that albeit the contract expires after a year or some months, getting another job are going to be easy with such knowledgeable degree. So getting a home loan for Jiten are going to be easier than Joy.
Ganeshanan may be a software developer and dealing for a multinational company on a contract based job. He has five years of experience within the same field and drawing a quite good amount of salary. If Ganeshanan applies for a home loan, he will catch on easily. The factor which supports the approval of home loan is that the work experience he has. The lender will assess the creditworthiness of Ganeshanan with the continuity of labor, the continuity of employer, credibility of the employer, past appraisals or profits etc.
The next scenario is of Amit’s, who has 5 years of labor experience and presently working as a contract based employee. But at the time of applying for the loan, his age is 40 years. Though he has quite good work experience, getting a loan are going to be challenging as until his mid-age he’s working as a contract based employee. Such situations may make the lender suspicious on the past work lifetime of the applicant. This will be a negative impression and switch to be a hindrance for the approval of the loan.
To Sum Up
Being a contract based employee, it’s not impossible to urge for Apply for Home loan in India. But the eligibility criteria is slightly stringent as compared to salaried employees. If you’re a contract based employee, it’s strongly recommended to see the eligibility criteria or ask the lender before you Apply for Home loan in India . The Employee status isn’t the sole criteria to measure the creditworthiness of an applicant. Your credit history, age, relationship with the bank etc. also matters when it involves getting approval on your home finance application.