Use of Home Loan Eligibility Calculator in Deciding the Loan Amount

Posted by Arwind Sharma on May 9th, 2018

In today’s time, a Home Loan has rightly emerged as a modern-day viable financial medium to help home buyers fulfil their dream of purchasing their dream home.

Yes, depending on your Home Loan eligibility, you can borrow money as high as Rs.20 lakh to Rs.10 or more as per your lender’s terms. That’ where if you are mulling a home purchase with a housing loan, being loan eligible is the first thing to do!

Also, if you are unsure of a House Loan amount that you can borrow, you need to discover your loan eligibility. For that, using a Home Loan eligibility calculator could be a smart step!

Let’s provide you more inputs on Housing Loan eligibility and related factors in this post as you read on!

What is a Home Loan Eligibility?

A Home Loan eligible is the capacity of a borrower to afford a Housing Loan and pay the borrowed amount in EMIs without hassles within the pre-determined tenor. Since a housing loan involves a large amount, lenders want to be sure that you can repay it! And that’s why not all are eligible and so many formalities are put into practice while awarding a Housing Loan finally!

What Determines your Home Loan Eligibility?

Lenders want to ensure that you are the correct person to whom they can offer a Home Loan before sanctioning it. As a result, they require some information from their borrowers to help them understand if you can afford a desired loan amount or not.

Lenders require a mix of information related to your age, a city where you live, monthly income, other income, other EMIs that you are paying, and a repayment tenor.

It is required to determine your House Loan eligibility so that you are provided with a final amount that you can apply!

What is a Home Loan Eligibility Calculator?

An eligibility calculator is an online tool that helps you determine a loan amount that you will finally borrow against a desired House Loan figure. It is available at prominent lender’s websites and apps which you can use easily.

How to Use a Home Loan Eligibility Calculator?

It is quite easy to use an eligibility calculator if you follow some steps such as:

Method 1 – Select your city of residence or where you want to avail a Home Loan

Method 2 – Enter your birth date

Method 3 – Enter your net monthly salary and other income if you are receiving it

Method 4 – Select an appropriate tenor or duration that you would need to repay a Home Loan EMIs

Method 5 – Enter your existing or current total financial obligations or EMIs that you are paying towards other loans/credit card outstanding

Method 6 – Click on ‘Check Your Eligibility’ button to know your Home Loan amount that you can now apply to the lender

The Bottom Line

A Home Loan has rightly emerged as a fabulous financial tool to help you buy a home and is always available for eligible candidates. If you think that you are eligible for a desired loan amount, you can quickly check it with an eligibility calculator. Alternatively, you can also know about an exact EMI amount and payable interest on a loan amount by using a Home Loan EMI calculator at a lender’s website.

All set to apply for a Home Loan? Determine your loan eligibility today and embark on your way towards a Home Loan and buy a dream abode!