Of late, several HFCs have slashed their lending rate, making home loans much cheaper than they used to be. Housing loan are a very popular product among Indian citizens at the moment, given the present home loan EMI rates.
Prospective borrowers who are worried about their eligibility for home loans can make use of EMI calculators to know how much loan they can get from the lender.
A number of factors like a person’s monthly income, credit score, current age, monthly financial obligations, credit history, and retirement age determine an individual’s eligibility.
How to check eligibility using a home loan eligibility calculator?
A home loan eligibility calculator facilitates checking eligibility for housing loans online. One simply needs to fill in the following details:
- Gross monthly income in rupees – Put in the total monthly income in rupees.
- Loan tenor: Put in the loan term in years for which you desire to avail the loan. A longer tenor helps enhance eligibility.
- Interest rate: Put in the prevailing housing loan interest rate of your HFC of choice. One can check the prevailing home loan interest rates
- Other EMIs (Monthly): Put in the other monthly EMIs of any other loans that you may have in this calculator, and this is how home loan eligibility is calculated online.
How can home loan eligibility be enhanced?
By following these simple tips one can easily enhance their home loan eligibility significantly:
- Add another earning family member as a co-applicant
- Avail a structured repayment plan
- Clear existing loans or short term debts
- Declare additional income sources
Factors that affect home loan eligibility
An individual’s home loan eligibility in India and universally is judged upon their perceived ability to pay back. So lending institutions gauge that based on the following factors that affect home loan eligibility:
- Borrower age – This is important because it determines the tenor of the loan, which, in turn, determines the monthly EMI. The longer the tenor, the lower the EMI and vice-versa for any given loan amount.
There are ways around it, however. There are many ways to reduce home loan EMI and also save money while doing so.
- Credit report – An applicant’s credit report and score helps the HFC judge their creditworthiness. This is a very important criterion for both the approval and rejection of loans.
- The nature and size of their monthly income – An individual’s monthly income determines the amount of EMI commitment they are capable of taking on. This determines how much disposable income they have after considering all other liabilities.
- Their previous loan commitments – Prior loans or credits, and how individuals serviced them play a significant role in deciding one’s eligibility.
To make this home loan process easier, some reputed housing finance companies provide pre-approved offers to expedite the loan procedure. These offers are available across several financial products such as home loans, loans against property, and more. Individuals can easily check their pre-approved offer by providing their basic information such as name and contact details.
The above-mentioned points on the home loan eligibility calculator can help one understand the basics of eligibility. A few entries on the calculator can have one on their way to finding their dream home.