Home loans can help you buy your dream house without draining your savings. However, to avail a home loan, you must meet the requisite eligibility. Having a sufficient salary is one of them. Therefore, if you have a low income, you might face problems in getting your loan approved. Thankfully, there are solutions.

Home Loan on a Low Salary in India

Here are ways through which you can avail a home loan even on a low salary:

  • Take a joint loan

Having a co-applicant who has a steady source of income canhelp you avail a home loan. The lender would club the income of both the applicants, which would help enhance the eligibility. Availing a joint loan would also help you share the responsibility, making it easier to repay the loan without default. You can avail a joint home loan with your spouse, parents and siblings.

  • Opt for different repayment options

Though the basic repayment method is paying a consistent EMI throughout the tenure, there are some other options as well. Many lenders have different home loan schemes, where they offer different repayment options. For example, some lenders offer step-up loans where you get the facility of paying EMIs in proportion to your salary. In the initial years, the EMI is low. When your salary increases, your EMI is also increased accordingly. Through this facility, you can avail a home loan with a low income as well. You can use the home loan EMI calculator to determine your affordability and accordingly choose the repayment option.

  • Manage your debt well

Before you initiate the home loan process, ensure that you pay off all your debts. The lower your credit utilization ratio, the better would it be for you to get the loan approved. Also, pay all your credit card dues on time and do not maximize its limit. In addition, it would be advisable for you to avoid availing of any other loans with a home loan.

  • Ensure a high credit score

The lender determines your repayment capacity from your income. However, your credit score is vital too, as it is a representation of your creditworthiness. You must have a credit score of 700 and above without any negative remarks on your credit report. You must check your credit report to identify any discrepancies and get them rectified before you apply for a home loan.

  • Steady job profile

Avoid changing too many jobs if you wish to avail a home loan. Having a steady job helps in assuring your repayment capacity to the lender. Most lenders prefer applicants who are employed with their organisation for at least three years. Also, you must keep the down payment amount ready for a seamless home loan process.

You could consider taking a joint home loan, opt for different repayment options, improve your credit score, and make sure to manage your debts well, in order to avail a housing loan even on a low salary. Note these points mentioned above and all you’ll need to do is, ensure that you meet the eligibility criteria and requirements of the lender before applying for the loan.