Having your own home is a big feat considering the increasing real estate costs prevailing in India. This is where house loans assist. They bring you closer to achieving your dream of owning a house. They are easy to obtain as long as you qualify for the same.
Checking your eligibility is the initial step in the loan application process. Banks and financial institutions offer a tool called the home loan eligibility calculator for your aid. It is simple to use where you enter the primary factors influencing your loan qualification. It simplifies the procedure of finding out if you qualify without any hassle.
Here is how you use it:
Age: The standard age requirement for home loan application is between 21 to 65 years. The earlier you apply, the longer loan tenure you can expect. This is why lenders consider it as a parameter for evaluating your qualification for the same. It is generally the first data you provide by entering your date of birth.
Employment status: The lenders calculate home loan eligibility differently for a salaried, a self-employed and a business owner. Hence, you need to select the same from the provided options to proceed with the calculation.
Monthly income: Depending on the calculator you use, you must either enter the gross or net monthly revenue. It directly influences your home loan eligibility for the amount sanctioned. The minimum income required is more than Rs. 25,000. This differs for salaried and self-employed individuals.
Interest rate: Here, you enter your expected home loan interest rate. It is inversely proportional to your eligibility. You get either higher or lower interest charged depending on your eligibility. Therefore, it is crucial to have a good credit score, income and financial standing before you apply to get desired interest rate.
Loan tenure: You input your desired duration in this tab. Lenders provide home loans for a minimum of five years and up to 30 years. It depends on your age and other factors and affects your equated monthly instalments. Hence, it is best to think about your repayment capacity and the loan cost before finalising it.
