home loan eligibility calculator

Know How to Calculate Home Loan Eligibility Before Availing of a Home Loan

Finance

Like any other financial product, a loan has a set of requirements that you must satisfy to access it. Financial institutions are typically skeptical about offering money to you if you are deemed a high-risk borrower. A strong credit score, among other things, is necessary if you want to impress your prospective lender. The first step to take to avail yourself of a home loan deal in India is to ensure that you qualify for the home loan. 

How many years of work experience do you have? Some lenders require that you must have spent several years at your workplace before approving your application. Do you have existing debts? We advise that you settle those debts to be strongly considered for a fresh loan. Age, credit score, credit history, and income are other key determinants of whether or not you get approved. 

Lenders will only offer you low-interest housing loans once they determine that you can easily repay the loan before the tenor elapses. Make conscious decisions by learning how to calculate your eligibility for a home loan. Doing this allows you to improve your chances of getting approved by the lender. 

Read on to learn how this works.

Home Loan Eligibility: An Overview 

As stated above, you must meet your prospective lender’s requirements to receive a home loan. When you do not meet the requirements, you do not only face rejection but this also negatively impacts your credit score and history. This means that your score decreases and your chances of getting approved by future lenders lessen too.

Although lenders have their specific requirements, know that none of them will give you a home loan if you are not at least 21 years nor an Indian citizen residing in India. 

What are the Factors that Influence Your Odds of Getting a Home Loan? 

If you are nursing a recent home loan rejection or you are a first-time applicant and want to get it right, below are three factors that affect your eligibility for a home loan.

Credit Score 

This is perhaps the most important part of lenders’ eligibility criteria. Having a strong credit score of up to 725 and above speaks well of your credit behavior and opens up the possibility of getting a home loan at the lowest interest rate. 

Factors, such as your debt repayment history, availability of current loans, and credit card bills, help the credit information bureau to set your score. 

Income

Lenders fix their income criterion based on the city that you live in. So, ensure that your income is within the range of what your lender permits.

Current Financial Commitments 

Most lenders tend to focus on unpaid dues when deciding whether or not you should get approved for a home loan. They also study your payment attitude, keeping an eye out for missed equated monthly installment (EMI) payments and other things. 

We advise that you cultivate a healthy debt repayment attitude. This not only improves your chances with home loan applications but allows you to negotiate for great terms. 

How Can You Calculate Your Eligibility for a Home Loan?

Before availing yourself of a housing loan in India, you should confirm that you truly qualify. How can you achieve this? Using an online calculator helps you to gain helpful information instantly. 

A home loan eligibility calculator displays the amount you can apply for and enables you to prepare a repayment schedule. It effectively reduces the risk of rejection and eliminates the stress of manual calculations. 

A Step-by-Step Guide to Using a Home Loan Eligibility Calculator

Below is a quick step-by-step guide on how to use a home loan eligibility calculator:

● Input personal information like your date of birth and city of residence. 

● Input figures in fields like net monthly salary, loan repayment tenor, other sources of monthly income (if any), and the EMI value of other loans (if any). 

A quick tip: Using the calculator allows you to know your options and apply for a reasonable amount with decent benefits. Further, you can use this tool free of charge. 

Take a Low-Interest Home Loan Now 

Now’s not the time to keep paying ridiculous amounts as interest on a home loan when you can take one at the lowest interest rate available today. The current home loan interest rates are at a historic low and therefore, the perks are many. So, make an application today and become a homeowner. 

Uneeb Khan

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