alexa
Indianmoney.com Missed Call Number
Home Articles Home Loan Eligibility Calculator | Housing Loan Eligibility

Home Loan Eligibility Calculator | Housing Loan Eligibility

IndianMoney.com Research Team | Updated On Tuesday, June 19,2018, 11:42 AM

5.0 / 5 based on 2 User Reviews

Home Loan Eligibility Calculator | Housing Loan Eligibility

 

 

 

A home loan is money borrowed from a bank, NBFC or HFC to purchase or construct a house. The loan is secured against the property.

 

  •  The property can be a self-occupied property. You can even avail a composite home loan (loan for purchasing land + construction of the building).
  •  If the borrower fails to pay back the loan, the banker can retrieve the money by auctioning the property.
  • You can even avail a joint home loan with spouse and certain family members.

 

Want to know more on home loans? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.

 

You May Also Watch:

 

 

Home Loan Eligibility Calculator

 

Eligibility criteria for availing a home loan may vary across lending institutions.

 

1. These are some of the common requirements to avail a home loan:

 

  • You must be salaried, self-employed or a business person who is a resident of India.
  • Your age must be between 21 - 60 years. For Self-employed citizens its 65 years.
  • You must have a regular source of income for timely repayment of the home loan.
  • Ensure that you do not have a bad credit score while applying for a home loan.
  • If you are a salaried employee, banks will want your combined loans, not to exceed 40-45% of take home pay.
  • For self-employed individuals, profits earned determine the eligible loan amount.
  • Loan eligibility criteria differs across banks. Approvals are based on borrower’s income, credit profile and the existing relationship with the bank.

 

 

 

These are some of the steps followed by banks to determine home loan eligibility:  

 

Step 1: Bank will consider your salary slips and bank statements to calculate the income/salary.

Step 2: Bank usually assumes 30% of your income as savings, say your income is Rs 1,50,000, the savings will be Rs 45,000.

Step 3: If there are any existing loan EMIs it will be reduced from the income.

Step 4: Banks then do a backward calculation to determine how much of a loan amount can be offered, according to the saving amount interpreted.

 

SEE ALSO: What 4 Years Of Modi Government Has Done To Your Finances?

 

2. What is a home loan eligibility calculator?

 

There are home loan eligibility calculators which help you calculate home loan eligibility. Using a home loan eligibility calculator, you can calculate your home loan eligibility.

This is how your home loan eligibility calculator works:

Step 1:

  • You have to key in the amount of home loan availed in the home loan EMI Calculator.
  • You select the interest rate in the home loan EMI Calculator.
  • You select the tenure and the home loan EMI Calculator calculates the home loan EMIs.

 

Be Wise, Get Rich.

 

 

Did you find this article useful? You can Rate us
5.0 / 5 based on 2 User Reviews
Article Author

IndianMoney.com Research Team

The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.

Get It now!