Home Loan Eligibility Calculator

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Home Loan Eligibility Calculator Highlights

Considering a Home Loan Eligibility Calculator before applying for a home loan is ideally a wise decision as it tells you how your monthly EMI outgo will seem potentially just in case you avail of it.

Description

Home loan eligibility criteria have common elements of all the financial institutions. Nevertheless, there could also be certain requirements that are applicable for each moneylender in accordance with their needs. Considering a Home loan Eligibility Calculator before applying for a home loan is ideally a wise decision as it tells you how your monthly EMI outgo will seem potentially just in case you avail of it. 

Eligibility Criteria for Home Loan

Following are the fundamental requirements for home loan in India: 

Home loan Eligibility Criteria – 2021 

Particulars 

Details 

Age 

18 to 70 Years 

Income (Min.) 

Rs. 25,000 

Credit Score 

750+ 

Employment Status 

Salaried, Non-Salaried 

Work Experience 

2 Years 

Loan Amount 

Determined by the bank 

Residence Type 

Permanent Resident, Non-Resident Indian (NRI) 

LTV Ration 

Up to 90% 

Property Type 

Land / Plot, Completed / Under construction project, Building on own land, Land purchasing and building home 

Note: Home loan eligibility criteria may vary based on a bank. Sanctions are based on the incomes of borrowers, credit profile, and existing association with the bank. 

Home Loan Eligibility Calculator

A Home loan Eligibility Calculator enables you to compute the amount of home loan you’re eligible to take out by considering multiple factors. Using this financial tool is quite easy and smooth, yet, here we are stating to you just in case you don’t know, how you can use a home loan EMI calculator. To check your home loan eligibility, all you are needed is to key in the following details: 

  • Net Monthly Income 

Net Monthly Income is the take-home amount of your salary. To understand simply, after your employer has deducted taxes and other deductions, the net monthly salary remains. In the case of self-employed individuals, the amount that remains after taxes have been deducted from their Gross Income will stand out as Net Income. 

  • Monthly Obligations 

Monthly obligations are those payments that you are required to make on a monthly basis. These monthly accountabilities do not comprise statutory deductions like provident funds and taxes, and deductions on investments like recurring deposit, insurance premiums, etc. Other loans besides home loans fall under the monthly obligations. 

  • Interest Rate 

It is a rate at which interest will be levied on your home loan amount. 

  • Repayment Tenor 

The repayment tenure is the time frame within which you are accountable to pay off the whole home loan amount including the applicable interest. 

Once done, the calculator will demonstrate the maximum loan amount that you’re eligible to take out alongside the EMI per month at the chosen interest rate. 

Factors That Affect Your Home Loan Eligibility

Following are the factors that stand out at the forefront in determining your home loan eligibility: 

  • Age 

As home loan eligibility is estimated for a certain period called the ‘loan tenor’, the age of the borrower also comes into consideration. Typically, younger applicants are sanctioned for longer term home loans as contrasted with those near to their retirement age. 

  • Income 

Your income is a factor that will stringently be taken into consideration by the lender so as to determine the amount they can lend out as a loan to you. The higher your income, the higher will be the loan amount that you can procure. 

  • Employment Type 

The type of your employment will determine the majority of your home loan eligibility. The lender will ask your background, whether you are a salaried individual or function as a self-employed professional or a self-employed non-professional. 

  • Credit Score 

On the basis of your credit history, a credit score gets allotted to you. This credit score or payment history is taken into usage so as to decide how well you managed your liabilities in the past and how likely you are to repay pay off the loan. 

  • Qualification and Work Experience 

Your academic credentials and experience of work also play a crucial role when it comes to determining tour home loan eligibility. Higher academic credentials and impressive work experience boost your odds of attaining a home loan sanctioned. 

Tips to Be Eligible for Home Loan

Below we have stated a few tips that can facilitate you in getting eligible for a home loan: 

  • Apply with a co-applicant 

You can maximize your eligibility by applying for a home loan along with a co-applicant. A co-applicant can be an earning spouse or your parents. If you apply for home loan along with the co-applicant, it boosts your income and eligibility to borrow more money. 

For instance, your monthly income is Rs. 30,000 and the loan amount you are eligible for is Rs. 15 lakhs. If you add your spouse as a co-applicant, earning Rs. 20,000/month, can boost your eligibility to Rs. 25 lakhs. So, it’s suggested to add a co-applicant, wherever possible, to boost your odds for home loan eligibility. 

  • Get free from existing debt obligations 

If you hold existing loans and you are paying other EMIs due to which your loan amount eligibility is less, you may consider prepaying some of your existing debts to boost your eligibility for home loan. 

For instance, your monthly income Rs. 35,000/month and you possess a credit card outstanding of Rs. 10,000. In this event, your eligibility minimizes since your FOIR is computed based on your income left post clearing debt obligations. So, attempt your best to pay off your credit card dues and then apply for new home loan for a higher loan amount. 

  • Maximize loan tenor 

Apply for a maximum tenor in accordance with your age. For instance, if you apply for home loan for 25 years, it will boost your eligibility since the EMIs mitigates. In this event, although, you will end up paying more interest by the end of the tenor. In contrast, if you take a loan for 10 years term, you might be eligible for a lesser loan amount. 

  • Perform market study 

Carry out full market study since the home loan interest rates keep on changing. Fixed rates remain the same throughout the whole tenor but floating rates change. Therefore, it is important to study the changes in home loan rate of several banks in response to the repo rate to comprehend the responsiveness of banks to market-rate adaptations. Even though, no need to perform if you are seeking home loan with fixed interest rate. 

  • Other sources of income 

The higher your income the greater your chances will be for your home loan eligibility. Just in case you are earning income by means of other sources like rent, do not forget to state the income with all the proofs since it can boost your eligibility for a high loan amount. 

➤ FAQs

Ques. How do I compute my home loan eligibility?

You can calculate home loan eligibility within a matter of seconds with Home loan Eligibility Calculator. All you need is to key in your net monthly income, monthly EMI obligation, interest rate, and repayment tenure. Once done with entering the information, the calculator will automatically show the resulting home loan eligibility amount.

Ques. How is Home loan Eligibility Calculator different from home loan EMI calculator?

A Home loan Eligibility Calculator is totally a different tool from home loan EMI calculator. A Home loan Eligibility Calculator tells whether you can get a home loan or not, while a home loan EMI calculator tells you how much you are capable to pay every month in form of EMI for a home loan.

Ques. How can I maximize my home loan eligibility?

You can increase your home loan eligibility in the subsequent ways: 1. Select a longer tenure 2. Mitigate / Clear your existing debt obligations 3. Enhance your credit score 4. Mention another income source 5. Apply for a home loan along with a co-applicant 6. Get an account opened with the selected home loan lender

Ques. What factors decide my home loan eligibility?

The following elements facilitate in deciding your home loan eligibility: 1. Age 2. Academic Qualifications and Work Experience 3. Net Monthly Income 4. Type of Employment 5. CIBIL or Credit Score

Ques. How does my monthly income affect my home loan eligibility?

Generally, home loan lenders will consider 40% to 60% of your monthly income as available towards the EMI of your home loan. Certainly, the proportion of the amount that can be kept aside for the repayment of the home loan every month will boost with a boost in income. So, the higher your income, the higher will be your home loan eligibility and vice-versa.

Ques. Why choose Afinoz for home loan?

Nowadays, almost all banks offer appealing schemes on home loan at competitive rates with many customer-friendly features. You can carry out rates comparison, check your eligibility, compute EMI, apply online easily and smoothly and get the best home loan interest rates. Afinoz facilitates you across the entire loan process from the second you apply to the disbursement. You can register with us, check home loan status on a constant basis.