What is Home Loan Eligibility Calculator?
At loanbaba.com, you can apply for home loan online. The funds will be sanctioned only for property purchase meant for residential purpose. We offer you free-to-use home loan eligibility calculator that will help you understand the exact loan amount you are eligible based on few details you provide. Rather than calculating the results manually, you can utilize the free-of-cost tool and make understanding of your housing loan eligibility, easy. You can also understand important tips for getting home loan approval from leading banks and NBFCs.
On our website, you will find financial institutes that offer up to 80% of the house purchase price. 20 percent is the minimum margin maintained by the banks and NBFCs. Interest rate start at 8.35% but will differ from one bank to other. Tenure of the loan can be from a year to 15 or more years.
What is Home Loan Eligibility Criteria?
The eligibility criteria for housing loan differ from a bank to another. You may want the funds to purchase a residential property out of state or in your own city, and there are some precautions to know while make the choice of a lender. The below table informs you about basic factors that banks and NBFCs look at to analyze your loan eligibility.
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Income
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The first thing the bank notices is nature of income/ employment of the applicant i.e. salaried, self-employed or professional. The applicants under any category should have a steady source of income. Income determines your eligibility for the mortgage loan which can also checked through online home loan calculator.
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Rate of interest
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For a higher rate of interest, your eligibility decreases. You can check eligibility as per specific rate of interest through tools like SBI home loan calculator and HDFC home loan calculator or online home loan eligibility calculator on our website.
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Loan tenure
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Your eligibility will improve if the repayment period is increased. However, the amount of interest to be paid by you will increase.
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Property Details
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The residential place you want to purchase will be analyzed regarding legal issues. Loan for home buying is given only after certain criteria are met by the builder/constructor/owner.
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Documents required for applying home loan
- Application form duly signed and photographs affixed on the same.
- KYC documents:
- Identity proof: voter card, PAN, passport, Aadhar card, DL.
- Address Proof: passport, Aadhar card, DL, voter card, utility bills, ration card.
- Salaried employees- salary slip of past 3 months and current salary certificate.
- Self-employed personnel and businessmen- audited financial statements along with bank statement of previous 3 to 6 months.
- Salaried individuals- latest form 16.
- Self-employed personnel- ITR of previous 3 years.
- Salaried individual- certificate of employment.
- Self-employed personnel and businessmen- legal documents which pertain to business establishment like partnership deed, articles and memorandum of association, etc.
- Property proof.
- Processing fees.
- Similar documents for co-borrowers are required.
How to increase Eligibility for Home Loan?
Eligibility for home loan cannot be assessed so easily. Banks consider your present income, liabilities and assets for calculation of eligibility. In case there is slight difference between your eligibility for loan and mortgage requirement, you can change the presentation to increase eligibility. Some of the tips are listed below:
- Clearing existing loans - You should not miss any credit card payment or Home Loan installment as this affects your CIBIL score and banks sanction home loan against CIBIL score.
- Variable pay - You should have proper record of variable pay as it plays an important role in eligibility calculations.
- Take time - In case you find any problem with your credit score or you already know that you have an amount unpaid against another loan, you should try to correct the CIBIL score first. Also, you should not apply with multiple lenders at the same time as individual application will be shown in your CIBIL report and may create suspicion about you in bank’s mind. You should also take time while choosing your lender on the grounds of rate of interest, repayment period and customer service.
- Step up loans - If you want to increase your eligibility for mortgage loan, it is better to consider step up mortgage loan. In such loans, EMI is lower in initial period and increases gradually. It is beneficial for young applicants.
What are the ways which improves Eligibility for Home Loan/Home Loan Eligibility Tips?
Below mentioned are the ways to improve your mortgage loan eligibility:
- Rental income- The rent you receive as a consequence of letting out your property adds up to your monthly and annual income and hence has a positive impact on your eligibility for housing loan. An enhanced value of loan can be sanctioned to you with this extra income.
- Tenure- Increase in repayment period increases your eligibility for the loan which cannot exceed 30 years in any case. However, the overall interest amount payable will also increase due to this.
- Spouse income- In case your spouse is also working or has any other source of income, then making him/ her co-borrower can be beneficial as it may increase the eligibility. This also means that both the borrowers have liability to pay the loan amount along with interest.
Why Use a Home Loan Eligibility Calculator?
Below mentioned are the reasons why you must use housing loan eligibility calculator:
- The tool provides idea about the interest amount to be paid, and how much interest you can save on the loan, and thus assists you to plan your yearly finances wisely.
- The housing loan eligibility calculator provides information on different combinations of loan repayment. It offers clear concept on loan based on your repayment capacity.
- You just have to provide few details in the calculator to arrive at the eligible loan amount within seconds. The tool is easy to use and simple to understand.
What are the Benefits of Using Home Loan Eligibility Calculator?
Below mentioned are benefits of home loan eligibility calculator:
- The Eligibility calculator home loan eases calculation of eligibility for the applicant regarding how much loan can be provided by NBFC or bank.
- The calculator is made by the experts to indicate the borrower about his/her home loan against CIBIL score, thus verifying your eligibility and other necessary details.
- For instance you are not sure which financial institute you must choose for the housing loan, you can use the eligibility calculator and feed details particular to banks, such as interest rate, loan amount offered, fees etc, and understand the best quote by knowing the amount you are eligible to borrow from each of these institutes.
How to Use Home Eligibility Calculator by Loanbaba?
Below mentioned are the ways on using the housing loan eligibility calculator on our website:
- Enter your net income for the month.
- Adjust the slider on the bar to mark the interest rate.
- Enter amount you pay for other instalments.
- Adjust the slider on the bar to mark the loan tenure (number of years).
- As per the entered value, at the left-hand side of inputs entered, you will be able to see the amount for total interest payable and the eligibility amount.
Home Loan Eligibility Calculator FAQs
Below mentioned are some of the important questions regarding housing loan in India.
Loans to purchase residential property can be of many types. Besides understanding types of housing loans, you should know eligibility criteria for the same by leading banks in India.
- Axis Bank home loan eligibility
- Applicant should be of age between 24 years and 65 years.
- Self-employed personnel must possess a work experience of at least 2 years.
- One can avail a home loan of Rs. 5 lakh easily from Axis Bank; however the maximum limit of finance under this scheme is Rs. 10 crores, subject to fulfillment of housing loan eligibility conditions.
- A repayment period between 1 year and 30 years is given to the borrower depending upon his/ her individual eligibility and other factors.
- PNB HFL home loan eligibility
- One can avail a minimum loan of Rs. 5 lakh easily from PNB HFL.
- The applicants should be at least 23 years old at the time of application of loan and not above 70 years at the time of maturity.
- The repayment period can range between 1 year and 30 years.
- HDFC home loan eligibility
- The minimum and maximum amounts of loan that can be availed are Rs. 5 lakh and Rs. 10 crores respectively.
- Applicant should be aged between 21 years and 60 years at the time of application and maturity of loan respectively.
- A repayment period of 1 to 30 years is awarded by the bank.
- SBI home loan eligibility
- SBI mortgage loans are offered for a period between 1 year and 30 years.
- The applicant’s age should be between 18 years and 70 years at the time of application and maturity of loan respectively.
- ICICI home loan eligibility
- The applicant’s minimum and maximum age is 21 years and 65 years respectively.
- A repayment period of 3 to 30 years is offered by the bank depending upon individual eligibility.
- The minimum and maximum of loan amount that can be sanctioned is Rs. 5 lakh and Rs. 10 crore. Depending upon the eligibility of the customer, a sum in between these two amounts is sanctioned.
The prime factor which is being considered for granting a mortgage loan is age of the applicant. Lender (banks and NBFCs) try to limit the maturity of loan at the time of superannuation of the main borrower. Now, superannuation age is normally 60 years in government sector and is considered to be same in case of private sector. Hence, it can be said that young applicants can get a time period of 20 to 30 years for repayment of loan; however old applicants (above 50-55) may be refused to be granted loan.
As per Indian banking system, EMI to Net Income ratios of 40 to 60 percent is considered ideal. However, if you have more loans, it will be shown in your CIBIL report and banks hesitate to sanction home loan for low CIBIL score. Hence it will be better to know your home CIBIL report before applying for such a loan. You must clear your previous loans first if you need home loan with bad CIBIL score.
Below mentioned is housing loan eligibility as per employment type:
- Salaried individuals- Banks look for a work experience of at least a year in the same organization to know if the salaried individual has a stable income. To verify banks insist upon form 16, reference from employer, pay slips and bank statements. In case of co-borrower, same needs to be furnished on demand.
- Professionals- Under this category, individuals like dentists, management consultants, freelancers, engineers, CAs, architects, doctors, etc lie. ITRs for last 3 years along with bank statement are insisted upon by bank.
- Self-employed- For people falling under this category, tax related documents and bank statement are insisted upon.
The minimum CIBIL score required for home loan varies from bank to bank, but preferable score is above 650 or 700. CIBIL report is a major factor behind decision of your housing loan. The bank takes out CIBIL score for home loan grant. Banks often keep record of your CIBIL score throughout the loan tenure. And it is clear that no bank offers any home loan for CIBIL defaulter.
