How to use home loan eligibility calculator?
- Enter the net monthly income. eg: 40000
- Enter the required loan amount. eg: 2000000
- Select the loan tenure (no. of years). eg: 20
- Select the rate of interest. eg: 10.5
- Click on calculate button.
- Your home loan eligibility will get display above calculate button.
- To reset all values click on reset button.
- Check your EMI using Home Loan Emi Calculator
Calculate Home Loan Eligibility
Important points about Home Loan Eligibility
Before buying your dream home, it is imperative that you check your home loan eligibility. Once your home loan eligibility is in place and you actually know how much maximum home loan you can avail it will be much easier to plan your home purchase and arrange the additional funds that you would be required to chip in with.
Banks are very welcoming when it comes to providing Home loans and a offer easy finance options to deserving clients. As a home loan borrower you can avail almost 75-80% of the property value as determined by the bank's valuation department. This is of course if everything else with regards to the property title and other technicalities are in place.
The home loan team at ghar.tv guides you at every step of the way to ensure that you find your home loan eligibility as fast as possible with an updated home loan eligibility calculator. However it is important to note that your financial track records in terms credit card payments, outstanding, bad credits, cheque bounces are all factored in along with your CIBIL score when a bank actually provides you with your home loan eligibility. It is therefore highly advisable to maintain a clean financial track record to ensure maximum home loan eligibility for yourself.
What does Home Loan Eligibility actually mean?
Based on your income either through business or through salary, you get qualified for a home loan. However the amount that one would be entitled to get as a home loan varies based on multiple criteria including the amount of salary, the amount of profit, age and other aspects of the job or business. All these and other relevant factors determine the following:
1. If you are eligible to get a home loan
2. How much home loan are you eligible for?
In other words a bank actually factors if you can repay the home loan amount in the time period that you are borrowing the amount for. This, simply put, is called home loan eligibility.
It is prudent to check your home loan eligibility before embarking on home purchase exercise. A negative reply from a lender for your home loan application could actually spoil your credit profile which is all available online today. This in turn would lead to a detailed scrutiny by other banks when you apply again. So it is important to the help of a professional home loan agent or a professional home loan provider to do a soft check on your eligibility and then do the actual application for a home loan.
ghar.tv home loan division provides you with an immediate assessment of your home loan eligibility using a smart home loan eligibility calculator and also with the manual help of experts to factor in conditions that a calculator cannot understand. After this Ghar.tv also helps you avail home loans from a wide range of banks and financial institutions across India.
A brief ready reckoner for Home Loan Eligibility Criteria in case of salaried and self employed individuals:
Minimum Salary / income
Nationality - has to be Indian
The calculation for home loan eligibility and the limit for salaried borrowers and self employed (business persons) borrowers vary and so do the document requirements too.
Home Loan Eligibility for Salaried individuals
In the home loan category, having a salary is a big advantage when it comes to bank approvals. A recurring salary along with a stable job is something that all banks like instantly. There is a certain method that a bank uses to calculate the home loan eligibility and the maximum loan amount that any salaried individual is qualified to get. The net salary is considered important as it clearly shows your take-home amount. Based on this it is easy for the bank to evaluate your borrowing and repaying capacity and thereby calculate the loan amount they can provide you.
So essentially your net salary is what really determines your eligibility in terms of the home loan amount you can avail. Of course other factors like an existing loan, default payments, financial track records will also influence the bank's decision whether to give you a home loan and if yes, how much to give you as loan.
Of course age is also a major factor when it comes to your home loan eligibility. The younger you are the longer tenure you can get for a home loan and the closer you are to retirement age, the loan tenure will shrink proportionately. The higher your salary, the higher will be your home loan eligibility and vice versa.
With the help of a home loan calculator and with net monthly income, age, existing EMIs, other financial obligations and relevant basic criteria you can easily determine your tentative eligibility and plan your home purchase accordingly.
How does an Eligibility Calculator for Home Loan provide by ghar.tv help you to buy a home?
Since ghar.tv works with all leading banks and financial institutions our home loan eligibility calculator provides computations for multiple banks including home loan eligibility calculator for ICICI bank, loan calculator for Axis bank, SBI home loan calculator and others. Also there are purely individual home loans home loans and joint home loans where home loan eligibility calculator with co-applicant would come into play. In such cases if the co-applicant is also generating an income both the incomes would be combined and the eligibility would be derived based on the total income. This is computed in a particular way and the home loan calculator helps applicants with such combinations too.
There is no doubt that the ghar.tv home loan eligibility calculator and loan eligibility calculator excel with its calculations can help you prepare well in advance before buying your dream home. This would help in proper planning while arranging funds and also avoid nasty surprises later ensuring a hassle free and smooth property deal for you.
Feel free to use ghar.tv home loan calculator by visiting ghar.tv and clicking on the home loan section.
Home Loan Eligibility for Self employed individuals
When it comes to business persons and self employed individuals, the method of calculation varies slightly. Generally a minimum of three years of Income Tax returns are required to prove the income amount. Base on the ITR and the profit & loss statements and other factors, the home loan eligibility of a self employed individual is calculated using the home loan eligibility calculator.
Even with a business person all the other factors remain the same like exiting EMIs, payment track record, credit card defaults, banking history and overall financial behavior. There are some banks who also give more importance to the bank statements and overall transactions in the loan applicant's bank account.
Summary of the crucial factors that affect Home Loan Eligibility
There are a lot of important factors that influence the home loan eligibility. Out of these some are not necessarily in your control like:
1. Your age - Anyone generally beyond the age of 23 to the age of 62 years in case of salaried individuals can apply for a home loan. In case of self employed individuals and businessmen the age range is between 23 years to 70 years generally. Definitely your age is not in your hands but at what point in time of your life you apply for a home loan is definitely in your hands. The earlier you apply the longer tenure you will get. At the same time as you grow old and more experienced your salary increases and the amount of loan you can avail also increases. This is a decision that an individual needs to take along with his or her family, financial advisors, property consultants, etc.
2. Job - You qualifications, your job, the credentials of your company, and the amount of salary you receive and the appraisals that you receive based on your designation could all determine the amount of loan and your loan eligibility with a bank. This factor is neither completely out of your hands nor completely in your hands. Albeit it is definitely a major factor when it comes to deciding your home loan eligibility.
3. Business - The nature of your business - whether its manufacturing, trading, service oriented, volatile, insecure, stable and many such other factors decide the credibility that a bank views you with at the time of considering your home loan application. There are many businesses that are literally 'black listed' and even if the business is making a decent profit, many bans refuse to acknowledge them. At the same time even smaller businesses which are more stable in nature are considered apt for a home loan and banks provide home loans to such business owners too.
Factors in your control to enhance your home loan approval and home loan eligibility:
CIBIL: Your financial behavior is definitely something that is under your control. Ensuring that your bills including utility bills, credit card bills, etc. are paid on time is definitely your responsibility. Also avoiding credit card defaults, avoiding cheque bounces, late payments and any other financial irregularities in your life is in your control. As the entire banking, security and social system are literally connected through online mechanism and every individual's data and behavior are available for scrutiny with all authorities it is prudent to ensure hygiene when it comes to your finance life. A CIBIL score determines the amount of credit hat one can have and also highlights an individual's credit records. It is basically a rating mechanism which is computed based on your financial history and every negative action from your end tends to bring your CIBIL score down. The lower the CIBIL score the lower are your chances to get a home loan. Whereas the higher you CIBIL score, the higher are your chances to get eligible for a home loan easily and at lower interest rates too. Your PAN number, AADHAAR card are all linked to your CIBIL score and it is available within seconds for any bank's perusal. Therefore make sure that you maintain a very healthy CIBIL score and keep your chances of getting any kind of loan on the higher side always.
Ideas to increase your home loan eligibility
Improve your CIBIL score
Maintain a proper Income Tax return file
Create a healthy saving habit with at least some investments in Mutual funds, fixed deposits, life insurance policies, gold, etc. Banks do consider these factors and they enhance your credibility and eligibility too.
Ask for a longer home loan duration as that will reduce your monthly installments and thereby qualify you for a higher loan amount. Of course you will end paying more interest but your immediate requirement of a higher loan amount could be satisfied with this step.
Clear off all your existing loans, credit card dues, close your existing monthly installments and make sure that your outgoings per month are on the lower side. This would automatically help increase your home loan eligibility.
Increase your home loan amount eligibility by adding one or more co-applicants. The combined value of the incomes can help increase the loan amount and your eligibility as a combination will definitely go higher.