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 |
Note:
Chandra Patra is an employee of a leading company in India. His salary break up is mentioned below:
| Income | Amount | Deductions | Amount |
|---|---|---|---|
| Basic | 32,000 | Income Tax | 3,300 |
| HRA | 900 | Provident Fund | 2,200 |
| Conveyance | 10,000 | ----- | ----- |
| LTA | 9,000 | ----- | ----- |
| Special Allowance | 55,000 | ----- | ----- |
| Medical expenses | 2,000 | ----- | ----- |
| Total | 1,08,900 | Net Income | 1,03,400 |
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.
| Â | 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
GST Rate of 18% Applicable for All Financial Services Effective July 1, 2017.
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The lenders are focussing a lot on the segment that includes self-employed individuals for fuelling the housing loan growth. However, as per a CRISIL report, the businessmen have been warned about the risky segment. The segment is seen to be risky because of the immense spike in bad loans. The number of self-employed customers has gone up for the home loan finance companies to 30%. Four years ago, this stood at 20%. However, the gross non-performing assets, which were at 0.40% before, are now at 1.1%. One of the officials stated that the initiatives taken by the Government of India has caused the growth surge and the trend is expected to continue as both small and large housing finances organisations keep their focus on this particular segment.
5 April 2018
The Supreme Court has been concentrating more and more on the homebuyer’s security and the completion of various housing projects on time. This has been seen as a positive development and people are gaining more trust and faith in the real estate sector on the whole. In fact, the results of this are in front of our eyes. In the recent months, there has been a sudden and increased rise in the ‘insolvency’ cases against various real estate developers and promoters who have not finished projects on time, and have ‘defaulted’ in some way or the other.
As per a recent order issued by the apex court in India, it made it very evident that the main objective is to safeguard the interests of buyers in the country. Also, to encourage the completion of projects that have been overdue from a long period of time. Apart from this the Supreme Court is also likely to collect ‘undertakings’ from real estate developers in an effort to strictly monitor the completion of various housing projects that need to be completed. It will be quite a challenge to keep a track of all the incomplete projects since the numbers are pretty huge in the country. In this light the RERA Act has immense potential to look into the various issues related to the real estate sector in the nation in the coming years.
21 March 2018
The economic survey of 2016-17 has highlighted that migration has doubled in the period between 2011-16 as compared to the period between 2001-11. As per the survey, over 90 cities in the country had recorded annual population growth of 3 percent or more. Given the rise in migration, the urban housing shortage was estimated to be 19 million homes as of 2012. It needs to be taken in account that rental housing forms a significant component of housing in urbanising countries. As per the data available on migration-rental hypothesis, states like Gujarat, Maharashtra, Andhra Pradesh have a high percentage of rental housing. A report suggests that small, medium and large cities had 28, 36 and 40 percent of rental housing in the country. It added that in cities where large-scale construction and wards with industrial corridors are being witnessed have a higher share of rental housing. Given that, the migration figures are constantly on the rise, several changes need to be brought about to ensure that issues related to the rental housing market can be addressed.
19 March 2018
Companies that deal with housing finance reported a 30–60% increase in disbursements for housing loans in the last nine months of 2017 compared to the corresponding period in the financial year 2017. According to the companies, a chunk of the disbursements have been to the economically weaker section and the low income groups. The companies are focusing more on affordable housing and are targeting low and middle income customers, trying to customise products so that such customers would find it easier to take out home loans. Housing Development Finance Corporation (HDFC) reported an increase of 30% in home loan disbursements and LIC Housing Finance reported a year-over-year increase of 57%.
9 February 2018
The real estate industry in India has been through many twists and turns in 2017. The sector had recovered from the effect of demonetisation when drastic reforms like RERA and GST were introduced. All of these pushed the real estate market in a slump.
However, with the Union Budget 2018-19 right around the corner, the realty sector in the country is hopeful. Many key players in the industry are hoping for relief measures, few of which have been highlighted below:
22 January 2018
The Times Real Estate Expo is set to begin today, 16 December, that will exclusively feature RERA registered projects. The exhibition will last for two days, starting on Saturday, at The Grand Bhagwati Memorial Hall on S G Road. The timings of the exhibition are 10 a.m. to 7 p.m.
The expo is first of its kind and will showcase all the real estate projects that have been cleared by the RERA authorities. It will also serve as a platform to clear all the queries that one may have regarding RERA. Additionally, one can also explore the investment opportunities in real estate after the implementation of the Real Estate (Regulatory and Authority) Act.
28 December 2017
Every bank checks the prospective borrowers’ details like age, salary, bonds and securities, and credit score to determine their capability of repayment and analyse the risks involved in granting the home loan. So, if you have huge debts or default payments on your credit card or if you possess a number of cards then your home loan application will be at risk of getting rejected by the bank. Keeping in mind the significance of credit score, below are some factors you should remember while applying for home loans.
Do not overdraft your credit limit as it lowers the chance of getting a home loan approval. Talk to your bank to lower the limit.
Do not keep too many cards. Even if you’re not using them, the number of cards under your name affects and reduces your loan eligibility.
Do not keep a higher debt amount on your cards. If you are paying a considerable amount for debt repayment, lenders automatically assume that the potential amount for repaying home loans will be reduced.
Maintain a good CIBIL score and balance the ratio between your card limits and payable amount.
26 December 2017
The department of law, justice and parliamentary affairs recently increased the travel allowance and housing loan limit for lawmakers in the country. This decision was made after increasing their salaries and after considering the money left to be spent in the Constituency Development Fund (CDF). According to the new rule, lawmakers and any member of his/her family can utilise travel allowance upto Rs.1.5 lakh in one financial year. Similarly, the motor car loan limit for lawmakers have also been increased to Rs.10 lakh which was Rs.5 lakh previously.
The housing loan limit has been raised to Rs.10 lakh from Rs.5 lakh. If a lawmaker does not avail a car loan, then the borrower can avail a housing loan upto Rs.20 lakh provided he provides a letter from the concerned authority. If you are planning on availing a home loan, try one of the many online home loan eligibility calculators to determine your eligibility.
4 December 2017
Since State Bank of India reduced their Marginal Cost of Lending Rates(MCLR) by 5 basis points few days ago and claimed them as the cheapest home loan providers in the country, many banks and financial institutions have been following the trend to gain the title. Bajaj Finserv, one of the leading Indian company that offer a wide range of financial services has recently announced that in their limited period offer, they are offering the lowest interest rates on home loans and home loan balance transfers.
Home buyers can now expect an interest rate of 8.30% p.a. For home loan value above Rs.30 lakh. They also stated that currently, this is the lowest interest rate on home loans offered in the country. Bajaj Finserv is also offering a very high top-up loan for home loan customers upto Rs.50 lakh which can be used for any purpose like renovation, holiday, or wedding. This offer is valid for all new and old home loan customers who are looking to avail a home loan or transfer their existing home loan from 23 November 2017 to 29 November 2017.
To check if you are eligible for a Bajaj Finserv home loan, use an online home loan eligibility calculator.
29 November 2017
NBFC Cholamandalam Investment and Finance Company under Murugappa Group’s is known for for vehicle finance business. N Srinivasan, Executive Vice-Chairman and Managing Director who was recently appointed stated in an interview that they are now focusing on building a pure home loan portfolio. The current home loan portfolio size ranges from Rs.600 to Rs.700 crore. He further stated that currently they are lending to few affordable projects and the average ticket size is between Rs.15 to Rs.20 lakhs. They are going to focus on expanding home loan segment to potential borrowers.
With over 700 branches, they are confident that they will succeed in the home loan industry. If you are planning to avail a home loan, do your research and compare various home loans before you finalize on one. You can also check your home loan eligibility using an online home loan eligibility calculator before applying for a loan. This way, you can negotiate better.
17 November 2017
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