Every borrower needs to meet the home loan eligibility criteria required to qualify for a home loan. This ensures that he/she can repay the loan amount effortlessly without defaulting. So, ensure to complete the processing faster and smoothly by fulfilling the required eligibility criteria. 

There are various parameters that are considered for arriving at one’s home loan eligibility, like- AGE, EMI, credit score, LTV that one needs to check for loan eligibility. Since the banks and financial organizations lend money to an unknown person, they have set strict eligibility criteria that need to be fulfilled for getting the loan. Some of the factors on which a home loan is provided are listed below:

  • Salary or income of the borrower– This plays a crucial role in determining whether the borrower will be able to get the loan or not as the income of the borrower helps the bank in assessing whether they will be able to pay back the loan or not.
  • Borrower’s Age– The age of the borrower is important in establishing the length of time for which the loan should be made. If a person is youthful, they will have more time to repay the debt, however, if a person is older, the financial institution will be hesitant to issue a long-term loan
  • Credit Score of the borrower- The credit score of the borrower helps the bank in determining whether the borrower is a reliable person and has paid previous loans on time or not. 
  • Property: If the borrower is requesting an Rs 80 lakh loan, their property should be worth at least Rs 1 crore. Technically, the property’s price should support it, and the borrower will have to pay 20% out of pocket and the remaining 80% with a loan. It should not be the case that the borrower spends Rs 1 Crore for a property worth Rs 10 Lac.
  • Approvals of the property: Depending on the location, kind, and amount of deviation when construction, banks will decide whether or not to grant a loan.

An individual’s home loan eligibility is mostly determined by their income and ability to repay the loan. Here are some tips to help improve one’s eligibility.

  • Assign a co-applicant to the loan to a family member who earns a living, such as an individual’s spouse.
  • Check with the lender to see whether a structured repayment plan is available.
  • Ensure that one has a steady income flow and regular savings & investments.
  • Provide information on one’s regular extra sources of income, such as rental income from another property, revenue from a business other than their job, and so forth.
  • Keep a record of one’s variable salary components such as performance bonuses, commissions, overtime, etc.
  • Know one’s credit score and take the steps necessary to correct any inaccuracies (if any) or improve it.
  • Pay off current loans and short-term debts. 

Several lenders offer the option of evaluating an applicant’s loan eligibility online using a number of home loan eligibility calculators to make the loan application procedure as simple and successful as possible. A Home Loan Eligibility Calculator is a free online tool that may be used to determine one’s eligibility for a home loan. When an individual applies for a house loan, it estimates the maximum loan amount they may acquire depending on their age, income, and spending, among other factors. It’s pretty easy and simple to use the home loan eligibility calculator. 

Enter all the details as required, including one’s date of birth and residing city.

  • Step 1: Enter the date of birth in the format of DD/MM/YYYY.
  • Step 2: Provide the place an individual is residing in.
  • Step 3: Set net monthly salary by directly entering the amount or adjusting the bar provided.
  • Step 4: Set your preferred tenor up to 240 months as per one’s financial plans and repayment capability.
  • Step 5: Enter details of other incomes per month, if any. Skip this step if an individual doesn’t have other income sources.
  • Step 6: Provide the total amount of EMIs one is currently paying towards their existing debts. Avoid if there’s none.

Make sure to provide accurate information to compute the correct results. Recheck all the entries and click on ‘ check home loan eligibility ’. The home loan eligibility calculator displays the maximum loan amount one can borrow. Adjust the bar for other feasible tenors and check the amounts one can avail. Once an individual gets the maximum eligibility amount, apply for Home Loan as per their needs.

The Home Loan Eligibility Calculator provides an individual with an estimate of how much they can borrow and how much of a down payment they’ll need. It helps one get ready for the loan ahead of time and boosts their chances of getting it approved.

With this knowledge of the home loan eligibility, an applicant can now choose the best-suited lender offering the most economical financial instrument for their purchase. look among several HFCs in India offering Home Loans with their easy-to-meet home loan eligibility criteria and attractive features for a hassle-free, smart financing solution for the purchase.