Other income, mortgage guarantee can help you increase loan eligibility

Showing other income, and buying mortgage guarantee will help get approval

In recent days, lenders are applying more stringent standards while approving home loans. For loans sanctioned before the lockdown, they are asking for income-related documents again and re-evaluating applications. In some cases, the loan amount is being pared.

Many applicants have seen job losses, pay cuts, and deferments. Lenders fear that if they lend without due diligence, many of these loans may turn bad. Due to the moratorium, many customers have not paid their EMIs, but the lenders (especially housing finance companies or HFCs) still have to pay to the banks they have borrowed from. Hence, they, too, are conserving