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Eligibility Criteria for Axis Bank Home Loans

Given the current scenario of the housing market, purchasing a property that you could call your dream home is not easy by any stretch of imagination. The sharp rise in the prices of real estate is a cause of concern for many people who wish to buy a house of their own. If you are restricted by your budget, you can always get a home loan to buy that house you always wanted. However, you need to be eligible for the home loan. Here we describe the Axis Bank home loan eligibility criteria which is not that different from other Indian banks.

To be eligible for a home loan, you need to be a salaried individual or a professional or self employed.

In essence, you must have a source of regular income to meet the eligibility criteria. This is not difficult to understand since the bank expects repayment of the loan, and an earning individual is more likely to repay a loan. In other words, the risk involved in lending money to an earning person is less, and that is why most banks including Axis Bank offer loans to people with a steady income. Now let us discuss the above listed categories in detail.

1. Salaried Individual: You should be a permanent employee in a government based company or a reputed private company. Bank account details and salary slips can be produced in the form of documents. If you are a salaried individual, you can apply for a home loan. If your spouse falls under this category, the loan can be applied in his/her name.

2. Professional: Professionals; that is, doctors, engineers, dentists, architects, charted accountants, management consultants, company secretary, cost accountants only are eligible to apply for a home loan from Axis Bank.

3. Self Employed: If you are running a business or if you have a different source of income, and if you have been regular in filling your income tax, you can apply.

In addition to the above, there are several other factors that determine your Axis Bank home loan eligibility.

1. Income – How much you rake in each month determines the amount of loan you are eligible for. Axis Bank usually keeps the EMI to income ratio between 50% and 60

%2. Age – The applicant should be at least 24 years of age at the time of loan commencement and up to the age of 60 years or superannuation (up to 65 years or less in case of professionals and self-employed individuals) at the time of loan maturity.

3. Interest Rates – Loan eligibility is inversely proportional to the interest rate. If your applicable interest rate is low, your loan eligibility will be high and vice-versa

4. Loan Tenure – The longer your loan tenure, greater the loan amount you would be eligible for.

5. Existing Loans – As a standard, Axis Bank tries to keep the EMI to income ratio between 50 and 60 percent. In case you have any existing loans, the eligibility amount for the new loan will be reduced to maintain that EMI to income ratio.

6. Credit History – Axis Bank also checks your credit history from CIBIL (Credit Information Bureau India Ltd.), which is India’s first credit information bureau. They have a repository of information containing the credit history of consumer and commercial borrowers. This information is available in the form of credit information reports. To ensure that you meet the Axis Bank home loan eligibility criteria, you can access your own credit report by visiting the CIBIL website.

Debt to Income Ratio Crisis in Canada – How to Deal with Debt and Protect Your Assets

While the recession in Canada may have subsided, debt continues to cripple Canadians. So many Canadians struggle with debt for a myriad of different reasons. Many families who find themselves drowning in debt didn’t have it occur simply because of overspending. Those who lost employment or income during the recent recession represent a large group of individuals who have been trying to figure out how to deal with debt. Other reasons that people run into problems with debt include divorce, disability or other major life changes that create an immediate impact on one’s ability to pay his or her debts.

The Globe and Mail has reported extensively on the “debt to income ratio crisis in Canada”. An individuals’ debt to income ratio represents the amount of debt an individual has measured against his or her income. In 2010, the Globe and Mail reported that the debt to income ratio of Canadians has surpassed the debt to income ratio to our American counterparts.

In 2012, the Globe and Mail reported that the debt to income ratio report from Statistics Canada revealed that as of the third quarter of 2011, the average Canadian’s debt-to-personal-disposable-income ratio was 153 percent. That’s up from 150.6 percent in the previous quarter and higher than 148.3 percent a year ago. It seems that the debt that Canadians carry is ever increasing.

One reason for this trend we surmise has to do with how Canadians families cope with loss of income. When a major breadwinner in the household loses income, one natural solution may be to use credit cards to bridge the gap until that income might be coming in again. Another reason for this trend is because of banks and finance companies over-lending to people based on their household income so when one person suffers a loss of income the payments become unmanageable for the family to continue to maintain.

When a financial crisis emerges, naturally people begin to worry and wonder “what will happen to my home?”, “what will happen to my car?” and how to deal with their debt while protecting their assets. Most people want to pay their debt and don’t want to end up bankrupt. You can deal with debt and protect your assets and without filing for bankruptcy.

There are many programs available to help Canadians to deal with debt without going into bankruptcy. These programs are also quite effective at enabling people to deal with their debt while keeping their home and vehicle. They are also able to stop enforcement action like wage garnishments.

If your debt to income ratio is through the roof and you want to deal with your debt and protect your assets, you must act before things spiral out of control. Financial and debt consultants are a good option to help you not only deal with your debt but work through your budget and other financial affairs to help you get back onto a firm footing. Unlike bankruptcy trustees, financial and debt consultants represent you, not your creditors, and offer many more options than bankruptcy to deal with a financial crisis.