By simply entering a few basic details of your home loan, the calculator will determine whether you are eligible for a home loan or not. You need to simply provide basic information about yourself like salary, city of residence, employment type, etc.. After you have entered these details, the application will give you a list of home loans that you are eligible for.
|Home loan eligibility factors||Home loan eligibility criteria|
|Age||Minimum: 18 yrs. Maximum: 70 yrs. (depending on type of employment)|
|Minimum Net Annual Income||Rs. 5 - 7 lakhs depending on type of employment, EMIs offered up to 50% of net income, on average|
|Type of Employment||Salaried, Salaried Professional, Self Employed Business, Self Employed Professional, Student, Retired, and Homemaker|
|Status of Employment||Regular: at least 1 yrs. in current job/business/profession.; at least 2 yrs. of prior employment|
|Type of Residence||Owned/ Rented|
|Status of Residence||At least 1 yr. at current place of stay|
|Credit Rating||Good rating as per recognised credit bureau|
|Type of property being purchased||Affects loan amount eligibility|
Chandra Patra is an employee of a leading company in India. His salary break up is mentioned below:
Let us consider that Chandra has no loans or liabilities at present and his net available income is Rs.1,03,400. However, you one must always remember that Leave Travel Allowance is not taken into consideration by the bank while calculating the salary. The medical allowance is also excluded from the calculation. This is because, these expenses are not derived by an individual with his/her salary. In this case, Chandra will only get these amounts as reimbursements, in case he spends on medical needs or travel requirements.
Thus, the bank or the lender will deduct that LTA and medical expenses from the net income. Chandra’s net income now stands at Rs.1,03,400 – Rs.(9,000 + 2,000), which is equal to Rs.92,400. Thus, the loan eligibility for Chandra Patra stands at Rs.92,400 x 60 = Rs.55,44,000 In case of a home loan, EMI is restricted to a maximum of 40% to 50% of the net income (monthly) by most banks. This suggests that you are eligible for a home loan where the equated monthly instalment is not more than 50% of your monthly income
Note: Supporting documents vary according to lender requirements.
|Age range||Loan range||Work experience||Tenure range|
|Axis bank home loan eligibility criteria||24-64 years||5L - 10Crs||2 years||1-30 Years|
|PNB HFL home loan eligibility criteria||23-70 years||8L min||-||1-30 Years|
|HDFC home loan eligibility criteria||21-60 years||5L - 10Crs||-||1-30 Years|
|SBI home loan eligibility criteria||18-70 years||-||-||1-30 Years|
|ICICI home loan eligibility criteria||21-65 years||5L - 10Crs||-||3-30 Years|
1) Age: Age is the first and foremost factor a lender/ financier considers when one applies for a housing loan. Normally, financial institutions attempt to limit the house loan term to the primary applicant's age of superannuation. This means young professionals (20s and early 30s) can avail a loan with a term of up to 25 years with no trouble. But older applicants especially those beyond 40 can find it a tad tough to be eligible for an extended tenure. Many a time, single applicant aged 50 and above were denied home loans purely on this basis.
2) Income: Let us categorize this into salaried, professional and self-employed. Whichever category the applicant falls into, a steady and regular source of income is must. Basically, there are fewer risks in loaning money if the applicant is an earning individual.
3) Rate of Interest: Home finance eligibility is always inversely proportional to the rate of interest. If the rate is more, eligibility will be less and vice-versa.
4) Loan Term: If you opt for a longer tenure, your eligibility will improve. EMIs too will lesser and manageable. But the downside to this is, you will end paying more interest.
5) Outstanding Loan(s): Indian banks and financial institutions always recommend keeping the EMI to Income Ratio between 50 or 60 percent. This is to leave window for future loans or to pay of existing loans if any. But unsettled loans could be a great damper on your eligibility.
6) CIBIL Report: Banks also scrutinize your credit repayment history from CIBIL (Credit Information Bureau India Limited), which is country's regulator and first credit information bureau. They keep detailed records of every info regarding credit history relation between you and lenders/ creditors. A negative entry can bring down your eligibility significantly.
Eligibility is not an easy thing to assess. The banks and lenders will be considering your present liabilities, income, assets, etc. while calculating your home loan eligibility. In case the mortgage requirement is slightly higher that the eligible loan amount, some changes in the way you present yourself can help in increasing the eligibility factor. Tips to increase your eligibility for a home loan are mentioned below:
There are several factors that are considered by banks or lenders to determine if you are eligible for a loan. These factors are mentioned below:
Yes, your parents, children and spouse are considered eligible for being co-applicants for the home loan.
Yes, you can avail tax benefits when you take home loan from a bank or a financial institution under Section 80C and Section 24 under the IT Act.
In case you have a poor credit score, it will be difficult for you to get a home loan. Banks or financial institutions consider your credit report to be of great value while determining your eligibility towards a loan. If you have a good score, banks will be happy to offer you a home loan with attractive rates of interest. However, with a bad score lenders will doubt your repayment capability and might not consider you to eligible for a home loan.
While applying for a Home Loan, there can be a lot of confusions with regard to your EMI Payments. However, technology has made it easier for borrowers and potential borrowers to now use the EMI calculator to accurately calculate the EMI one has to pay after availing a particular loan. By simply entering a few details about your loan tenure, loan amount, interest, etc., the EMI calculator will be able to accurately assess your EMI payments.
Read on to know more about: Click Here
While applying for a Home Loan, there can be a lot of confusions that arise with regard to your EMI Payments, tenure, eligibility, etc. However, technology has eased this process for borrowers and potential borrowers. They can to now use financial calculators to accurately calculate the EMI one has to pay, your eligibility, interest, amongst other factors. By simply entering a few details about your loan tenure, loan amount, interest, etc., financial calculators accurately assess your loan details.
Read on to know more about: Click Here
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