How to Calculate Home Loan Eligibility?

Home sweet home is a saying a lot of people tend to believe. Everyone dreams of owning their own little space called a house or home. We strive day and night to make this dream our reality but sometimes we lack some funding. Therefore, to help us in such tough times, banks have created loan schemes. They call it the Home our House loans. These types of loans allow you to buy your dream space or they might also help you renovate your space. One can find out if they’re eligible to apply for a home loan but checking out the feature called Home Loan Eligibility Calculator. 

This feature is present on every single website of home loan providers. A home eligibility calculator is a tool made available to the borrower by the lender. Enabling them to check if they’re capable of repaying the borrowed amount. In this article, we will talk in detail about how you can calculate your home loan eligibility using the Home Loan eligibility calculator and other related criteria. 

Features of Home loan

Let us check out the features available with a home loan. 

Lower interest rate

If you need money on an urgent basis then a home loan is the best option. The scheme offers the lowest rate of interest than any other loans present in the market. However, the interest rate depends on the lender and your ability to repay the loan amount. Usually, the average rate of interest starts from 6.5% and ranges up to 12.00%. 

Balance transfer facility

Banks today have made a facility for you, the customer, in which you can transfer the home loan from one lender to another. You can transfer everything including your loan from any Commercial banks, foreign or private banks or even if you work with the Central or State government, although you need to pass all the eligibility criteria provided by the lender’s condition. 

Can be used for multiple reasons

You can apply for a home loan not only for renovating your house but for other reasons as well. You can issue a home loan to buy a commercial place or even land for your future house.

Long repayment tenure

This is one of those loans that give you long tenures compared to any other loans. The tenure that is generally given is of 25 to 30 years. This gives you plenty of time to be able to repay the lender the loan amount on time without having to stress much. 

Also Read: The Ultimate Guide To CAR LEASE CALCULATOR

Eligibility criteria for a home loan

Before understanding the process of how calculating the eligibility for a home Loan, you should check the points that make you eligible for the loan. 

For a Salaried employee

• You need to be within the age group of 18 to 60 years. 
• You should be an Indian resident. 
• The monthly income earned by you should be a minimum of 20 thousand. 
• If you are working in the private sector or a partnership firm, the minimum education qualification you would need is having a Bachelor’s degree. 
• If you are an employee of a public sector company or with any government-induced company, then no minimum qualification is required. 

For a Self employee

• The age group you need to belong to is between 18 to 65 years. 
• If you have a partnership firm or a private limited company, then the company should be existing for at least 3 years. 
• You should have a minimum annum of 2,40,000. (2 lakhs 40 thousand)

How to calculate home loan eligibility

Given below paragraph explains what a home loan eligibility calculator is and how it calculates your eligibility. 

An eligibility calculator is an online tool provided by only banks or lenders on their official websites. The calculators help you determine whether you are eligible enough to apply for a home loan. It highly depends on factors such as your current age, monthly income, credit score and also sometimes history with the bank or lender. The steps to calculate your eligibility are 

• Go to the lender’s official website. 
• Search for the home loan option 
• Check for the eligibility criteria given. 
• Enter your monthly income, tenure and interest rate to check your eligibility.
• You can adjust the numbers until you are comfortable with the results. 

Purchasing a house is not easy. Therefore, taking up a home loan can make a lot of things easier for you. It helps you get one step closer to your dream house. Home loans are the better option compared to Personal loans due to reasons like low-interest rates, long tenure and other great features. By using the home loan eligibility calculator you will not only understand if you are capable of repaying the lender but also will get sure about the loan amount, rate of interest and tenure.