Calculate Home Loan Eligibility on Bankbazaar

In today’s world, almost everyone opts for a home loan when it comes to buying a house. Bankbazaar allows you to calculate the home loan eligibility at ease.

The steps to find out your eligibility towards a particular home loan product are mentioned below:

• Click on above image or this link: /home-loan.html?variant=slide
• It will take to you to the page where you will be able to calculate your eligibility towards a home loan by simply following a few steps.
• On this page, choose the city you reside in. Mumbai, Chennai, Delhi and Bangalore are already there on the page than be chosen by you. However, if you reside in a different city choose ‘Other City’ and select your city from the list that appears next.
• You will be navigated to the next page where you must select your gender.
• Next you must choose the city where the property that you wish to purchase is located. Mumbai, Chennai, Delhi and Bangalore are already there on the page than be chosen by you. However, if the property that you want to buy in a different city, choose ‘Other City’ and select the city from the list that appears next.
• After this, you must click your type of employment from the options mentioned on the page. Depending upon your type of employment, the slides will keep changing. There are 7 options that you can choose from – Salaried, Salaried Professional, Self Employed Business, Self Employed Professional, Student, Retired, and Homemaker.

• When you choose ‘Salaried’, you automatically move to the next slide that requires you to enter the name of your company where you are currently employed.
• Enter the name of your company and click on ‘Continue’.
• Enter your year and month of joining. On the slider below, select your experience and click on ‘Continue’.
• On the next slide, enter your gross monthly income. You’ll see that the scale automatically takes the marker to the amount that you entered. Click on ‘Continue’.
• You should enter the bonus amount, if you have received any. However, this is an optional input and you may choose to skip this step.
• After you click on ‘Continue’ or ‘Skip’, you will be asked to enter your average monthly incentives. This data is also optional and you may choose to skip it.
• Enter the total EMIs that you pay at present. If you have no ongoing EMI payments, skip this step.
• On the next slide enter your age. As you move the marker on the scale, you will find your birth-year and month in a table below. Move to marker to your current age and then select the month and the year. Once you choose the month and year, another box will appear where you must choose your date of birth. Post this, click on ‘Continue’.

Home Loan Eligibility

After completing all the steps above (as per your type of employment), follow the next steps:

• Choose how to use the home loan amount in the next slide. You can choose from three options – Purchase or construct on the property that you have already chosen/Transfer your existing home loan/Purchase a house although you haven’t zeroed-in-on on one.
• If you choose any of the first two, you will have to elaborate about your property and select from the five options mentioned on the next slide:

• Completed Project:
  • If you choose this, on the next slide you have to enter the name of the builder and project. (optional)
  • Enter the cost of the home or flat.
  • On the next slide, choose if you want to own the property all by yourself or with a co-applicant. If you wish to get a co-applicant on-board, enter your co-applicant details. Click on continue and choose who will be your co-applicant – father, mother, spouse or children. Also enter his/her other details like type of profession, income, etc.
  • If you wish to be the sole applicant, click on ‘No, I’m applying alone’.
  • You will be taken to the next page where you need to enter your name, mobile phone number (optional) and email id (optional).
  • Check the box that authorizes Bankbazaar to SMS, call or mail at about the products that it offers.
  • Click on ‘View FREE Offers’.

• Under-Construction Project
  • If you choose this, on the next slide you have to enter the name of the builder and project. (optional)
  • Enter the cost of the home or flat.
  • On the next slide, choose if you want to own the property all by yourself or with a co-applicant. If you wish to get a co-applicant on-board, enter your co-applicant details. Click on continue and choose who will be your co-applicant – father, mother, spouse or children. Also enter his/her other details like type of profession, income, etc.
  • If you wish to be the sole applicant, click on ‘No, I’m applying alone’.
  • You will be taken to the next page where you need to enter your name, mobile phone number (optional) and email id (optional).
  • Check the box that authorizes Bankbazaar to SMS, call or mail at about the products that it offers.
  • Click on ‘View FREE Offers’.

• Land/Plot Only
  • After you choose this type of property, on the next page select where the land is – Inside City Limits or Outside City Limits.
  • Post this screen, choose the type of transaction – Direct Allotment or Resale.
  • On the next page, mention who the seller is – Private/Government/Builder
  • Enter the cost of the land after choosing the seller.
  • On the next slide, choose if you want to own the property all by yourself or with a co-applicant. If you wish to get a co-applicant on-board, enter your co-applicant details. Click on continue and choose who will be your co-applicant – father, mother, spouse or children. Also enter his/her other details like type of profession, income, etc.
  • If you wish to be the sole applicant, click on ‘No, I’m applying alone’.
  • You will be taken to the next page where you need to enter your name, mobile phone number (optional) and email id (optional).
  • Check the box that authorizes Bankbazaar to SMS, call or mail at about the products that it offers.
  • Click on ‘View FREE Offers’.

• Built/Building on Land You Own
  • Enter the cost of the land after choosing this type of property.
  • Enter the cost of construction on the next page.
  • On the next slide, choose if you want to own the property all by yourself or with a co-applicant. If you wish to get a co-applicant on-board, enter your co-applicant details. Click on continue and choose who will be your co-applicant – father, mother, spouse or children. Also enter his/her other details like type of profession, income, etc.
  • If you wish to be the sole applicant, click on ‘No, I’m applying alone’.
  • You will be taken to the next page where you need to enter your name, mobile phone number (optional) and email id (optional).
  • Check the box that authorizes Bankbazaar to SMS, call or mail at about the products that it offers.
  • Click on ‘View FREE Offers’.

• You are Looking to Buy a Piece of Land and then Build on It
  • After you choose this type of property, on the next page select where the land is – Inside City Limits or Outside City Limits.
  • Post this screen, choose the type of transaction – Direct Allotment or Resale.
  • On the next page, mention who the seller is – Private/Government/Builder
  • Enter the cost of the land after choosing the seller.
  • On the next slide, choose if you want to own the property all by yourself or with a co-applicant. If you wish to get a co-applicant on-board, enter your co-applicant details. Click on continue and choose who will be your co-applicant – father, mother, spouse or children. Also enter his/her other details like type of profession, income, etc.
  • If you wish to be the sole applicant, click on ‘No, I’m applying alone’.
  • You will be taken to the next page where you need to enter your name, mobile phone number (optional) and email id (optional).
  • Check the box that authorizes Bankbazaar to SMS, call or mail at about the products that it offers.
  • Click on ‘View FREE Offers’.
• In case you choose the third option (I haven’t yet identified the property I’d like to purchase), choose if you want to own the property all by yourself or with a co-applicant. If you wish to get a co-applicant on-board, enter your co-applicant details. Click on continue and choose who will be your co-applicant – father, mother, spouse or children. Also enter his/her other details like type of profession, income, etc.

• If you wish to be the sole applicant, click on ‘No, I’m applying alone’.
• You will be taken to the next page where you need to enter your name, mobile phone number (optional) and email id (optional).
• Check the box that authorizes Bankbazaar to SMS, call or mail at about the products that it offers.
• Click on ‘View FREE Offers’.

Similarly, when you choose other types of employment like Student, Retired or Homemaker, you need to follow the steps displayed on the screen to calculate home loan eligibility.

When you click on ‘View FREE Offers’, you will get to know about all the home loans that you are eligible for. Compare all of them and then choose the one that is the best for you.

Example of Home Loan Eligibility Calculation: Let us understand home loan eligibility calculation with the help of an example.

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

Home Loan Eligibility Criteria

Note:

• Loan eligibility criteria differ for each banks/lender.
• Approvals are based on borrowers' incomes, credit profiles and existing relationships with the bank.

Documents Required for Applying Home Loan:

Supporting documents vary according to lender requirements:

Home Loan Eligibility Criteria for Some of the Top Banks:

Axis Bank Home Loan Eligibility:

• The age of applicants can range between 24 years and 65 years.
• The minimum amount of loan that an applicant can avail with Axis home loan is Rs.5 lakh. The maximum home loan that can be availed stands at Rs.10 crore.
• The minimum work experience for self-employed applicants must be 2 years.
• If the applicant is eligible for Axis Bank home loan, he/she will be able to enjoy a tenure ranging between 1 year and 30 years.

PNB HFL Home Loan Eligibility:

• The age of the applicants can range between 23 years and 70 years.
• The minimum loan amount that the applicant can borrow is Rs.5 lakh.
• The tenure offered by PNB HFL home loan ranges between 1 year and 30 years.

HDFC Home Loan Eligibility:

• The age of the applicants can range between 21 years and 60 years.
• The minimum loan that the applicant can avail is Rs.5 lakh and the maximum loan that can be availed stands at Rs.10 crore.
• The tenure of HDFC home loan ranges between 1 year and 30 years.

SBI Home Loan Eligibility:

• The age of the applicants can range between 18 years and 70 years.
• the tenure offered by SBI home loans range between 1 year and 30 years.

ICICI Home Loan Eligibility:

• The age of the applicants can range between 21 years and 65 years.
• The minimum loan that can be availed with ICICI home loan is Rs.5 lakh and the maximum loan amount that can be availed stands at Rs.10 crore.
• If the applicant is eligible for the loan, he/she can avail tenures ranging between 3 years and 30 years.

Top 6 Factors Affecting Home Loan Eligibility

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.

• Salaried Individual: If you are working for any government department or at any registered private company, you belong to this group. Most banks insists that the applicant should have completed at least one year in the present firm at the time of application. Pay slips, Form 16, bank statements and employer reference letter are the documents almost all lenders demand. Proofs for the same is needed for co-applicant and guarantor too (if applicable).
• Independent Professionals: Doctors, dentists, architects, engineers, management consultants, chartered accountants, freelance workers etc. belong to this category. Bank statements and ITR papers have to be submitted.
• Self Employed: Do you have your own company/ business? Or do you have other source of income like rented properties or hold shares? Then you belong to this category. If you have bank statements and tax-related papers to show, you can certainly apply for a home loan.

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.

7 Tips to Increase Your Home Loan Eligibility

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:

1. Clearing Existing Loans: Ensure that you pay diligently towards your credit card outstanding or personal loan instalments. These can make the lender reject your application. The ideal thing to do is clear all dues and collect a no-due certificate before applying for a home loan. Ensure that your CIBIL report reflects these payments when you apply for home loan.
2. Variable Pay: Ensure that you keep track of the variable pay that you get with your salary package. Calculation of eligibility towards a home loan also depends on this factor.
3. Rental Income: If you have a house that is not being used by you, lease it out. The money that you earn as rental from this property can be used by you to show additional income source when you apply for a home loan. Your loan value can easily be enhanced by adding the rental income with our regular earnings.
4. Increase in Tenure: The tenure of the home loan and the eligibility factor are directly proportional to each other. The eligibility increases upon increasing the tenure of the home loan. However, the maximum tenure that can be availed at present stands at 30 years.
5. Income of the Spouse: In case your spouse has a regular source of income, then applying for a joint home loan can prove to be advantageous. The home loan eligibility goes up dramatically if you apply for a home loan with your spouse. This also suggests that both of you will have to repay the loan together.
6. Take the Time You Need: Before making an application for a home loan, it is advisable that you take a look at your credit score. Look for errors on your report. In case, you find an error, ensure that it gets cleared by CIBIL. In order to get a loan quickly, do not apply with multiple lenders. Instead, find out the offers that you can get from different lenders. If the CIBIL score that you have is good, different lenders will be more than satisfied to offer the loan amount to you. Before you choose your lender, speak to an existing customer of that lender. Easy schedule of repayment, competent rates of interest and good services are the things to look at while choosing a lender.
7. Step up Loans: Step up loans can be considered by you if you wish to increase your home loan eligibility factor. This is a great option for people face a lot of struggle initially, but get rewarded as they get established. Example – Chartered Accountants and Doctors. Under step up loans, lower EMIs will be offered with the loans. The instalments will go up gradually in the future.

FAQs on Home Loan Eligibility:

• What factors are considered by a lender/bank while approving a loan?

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:

• Applicant’s age.
• Applicant’s income level.
• Qualification of the applicant.
• Income level of spouse.
• Resident status.
• Existing loan status.
• Credit score and credit history.
• Are my children eligible to be co-applicants for my home loan?

  Yes, your parents, children and spouse are considered eligible for being co-applicants for the home loan.

• Am I eligible for tax benefits if I take a 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.

• Will I be eligible for a home loan if I have a bad credit score?

  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.