Home Loan Eligibility
NBFCs (Non Banking Financial Companies) base their home loan elgibility criteria on the borrower’s profile, which is defined by the following:
- Monthly income (gross and take home)
- Spouse’s income
- Assets and liabilities
- Stability of occupation
- No. of dependents
- Savings history
- Possibilities/opportunities for canvassing other institutional business income
How do NBFCs do it quicker?
✓ They have less documentation.
✓ They are aggressive in their approach.
✓ Their loan process is quicker.
✓ Their credit policy is flexible.
✓ They sometimes provide doorstep services.
Salient features of a NFBC home loan to salaried individuals:
- a) The rate of interest is fixed based on prime lending rate (PLR) of the NBFC.
- b) Loan may be sanctioned to a borrower with an inadequate credit score, albeit with increased ROI.
- c) Online loan application and process is available.
- d) When they encash the advance cheque given for process fees, you know that your papers are in process.
Are NBFC home loan interest rates reasonable?
This is one area where the NBFCs are competitive, but this is also an area of concern for a consumer since their priority is to get the cheapest offer possible. Most NBFCs disclose their basic rate of lending but also state applicability vaguely, maintaining that the rate of interest would depend upon individual requirements and consumer profile (permanency in job, professional qualifications, etc.). As and when interest rates change downwards, NBFCs insist on payment of additional charges for each such interest downgrade/review. Read here all kinds of home loan interest rates.
Consumer VOICE did home loan comparison of 7 NBFCs on basis of loan amounts, processing charges, rates of interest, eligibility age, repayment periods ad other parameters to recommend the Best Buy, Good Buy and Fair Buy for a home loan from NBFC.