HOME LOAN ELIGIBILITY CALCULATOR
To know more about home loan eligibility calculators, we will be first required to know more about the term ‘Home Loan Eligibility’. The term, home loan eligibility, stands for the defined set of criteria that helps the lender to determine whether the borrower is capable of obtaining a home loan or not. There are many factors that help to determine eligibility for a home loan, such as, your income, age, financial status, CIBIL score etc.
The Home loan eligibility calculator, is a specially designed calculator that is used to calculate the possibility of the applicant to avail a home loan and to what extent. It is an online tool that can effectively manage your home loan eligibility, in accordance with your financial factors. By using this calculator, you can appropriately determine the home loan amount you are eligible for, based on your repayment history and your monthly income. As a result, it also decreases the chances of rejection of your home loan application.
This tool is useful as it helps the applicant to manage his home loan buying, keeping in mind the eligibility. It determines the amount you are eligible for, which also helps in planning. You are required to give only the basic information to know your home loan eligibility, such as-
- Your monthly income, which is the most important factor to determine your home loan eligibility.
- The desired repayment period in which you wish to pay your entire home loan back
- The interest rate on home loan, offered by your lender
- Other monthly obligations or any EMIs that you are obligated to pay.
Factors influencing Home Loan Eligibility
There are some factors according to which the lender calculates your home loan eligibility. Here are mentioned the factors that influence your home loan eligibility-
- CIBIL score, which determines your creditworthiness
- Age of the applicant, which will determine the maximum loan tenure you can avail
- Employment status, which determines your financial status
- Monthly income, which determines the maximum EMI you can afford to pay
- Loan to Value ratio
- Property details
- Expense to income ratio
Based on the aforementioned factors, the applicant’s home loan eligibility is determined. The more extent you have in the above factors, the more likely you are to obtain a home loan with a greater amount. To know your home loan eligibility using the tool, you need to put the required information that are-
- Net monthly in-hand salary
- Home loan repayment period
- Any other valid income source
- Other EMIs and monthly obligations
Importance of Income in Home Loan Eligibility
There is no doubt in the fact that higher income will help you to avail a home loan with a higher amount. The home loan amount you are eligible for depends on a number of factors such as your CIBIL score, age, location, salary and any other EMIs. Lenders often provide you with a maximum home loan that will be 60 times your annual income. Your monthly in-hand salary will determine the maximum EMI you can afford to pay in a month, which will determine your maximum home loan amount. Your income states your repayment capacity, which is indeed a very important factor for the lenders.
The Bottom Line
Applicants should go for a thorough research and analyze the home loan eligibility defined by several lenders before moving ahead with the home loan application. Before finalizing the lender, the applicant should use the home loan eligibility calculator, with the rates offered by different lenders. This will help you to have clarity and choose the best home loan with the most affordable interest rates. Also remember, that having a stable salary is very important in obtaining a hassle free home loan. You can also use the home loan EMI calculator to know your EMIs, on a prior basis, according to your monthly income and repayment capacity.