Home Loan Eligibility Calculator

Home Loan Eligibility Calculator

Buying your dream home is a huge investment. Among other parameters, assessing your financial status is the most significant one. While buying a house with your liquid cash has several benefits, a home loan becomes a saviour solution that saves tax and ensures enough liquidity.

If you plan to buy a home recently, this post offers comprehensive information on a home loan eligibility calculator. So, what do you mean by home loan eligibility? Let's read this post to gain a deeper understanding of home loan eligibility, how it is calculated, the criteria, and more.

What is Home Loan Eligibility?

Before you understand how to calculate home loan eligibility, you must learn what exactly home loan eligibility is.

As a house seeker applying for a loan, it is imperative to understand your eligibility criteria first. But you may ask yourself - how to calculate home loan eligibility?

On that note, this post comes as a saviour solution. Here, we will give you a detailed analysis of how to calculate your loan eligibility using a calculator. Note that the eligibility criterion determines whether you qualify for the home loan or not. A lending bank conducts loan eligibility screening and assesses your eligibility. The bank takes into consideration your financial status by assessing your credit score, documents, monthly income, age, and property type/size/age you are buying.

How Is Home Loan Eligibility Calculated?

The lending financial institute considers a few parameters before approving your loan application. Using a house loan calculator is the most straightforward method to determine your eligibility for a house loan. The home loan eligibility calculator India can be calculated.

Whether you are a self-employed or salaried individual, a house loan seeker needs to enter basic information like your official name, email ID, PAN number, monthly income/salary, and number. By entering the above details, you can calculate the eligibility for house loans.

Home Loan Eligibility Criteria

The home loan seeker must assess their eligibility in order to qualify for a property loan. It ensures that the individual (whether salaried or self-employed) repays the amount without any defaulting issues. Failure to meet the eligibility might result in denial of your application. As a result, it leaves a negative mark on your credit profile.

• Age criteria for a salaried person: 18-60 years of age
• Age for self-employed individuals: 18 to 75 years
• Salaried individual's total work experience: Minimum of 2 to 3 years
• Credit Score for a house loan should be a minimum of 725 or higher
• The individual should earn a minimum salary every month (some banks avail loans to individuals who earn Rs. 10000 per month, while others lend money to people who earn Rs. 25,000 p.m., so it depends from one financial institute to another)
• The nationality should be Indian, and the individual should reside in the nation
• Business vintage: a minimum of 5 tears

Depending on your application, your amount for the home loan varies from one individual to another. So, choose the best home loan amount eligibility calculator to assess whether you qualify for the loan or not.

How To Use IIFL's Home Loan Eligibility Calculator?

• Step 1: Go to IIFL's website and click on the home loan eligibility calculator link
• Step 2: Enter your monthly income amount
• Step 3: Next, fill in your current expenses like house rent, insurance premiums, other loan EMIs, etc.
• Step 4: Now choose things like preferred property location, loan tenure, any past loans
• Step 5: Hit 'Calculate', and the calculator will crunch numbers to show the maximum loan amount you can get
• Step 6: Play with the inputs by changing income, expenses, and locations - to find the best loan amount match for your budget

Factors Affecting Your Housing Loan Eligibility

The top factors that affect housing loan eligibility include the following:

• Employment: An employee with a history of frequently changing jobs may not be eligible for the loan as their income is unpredictable. So, working for at least 3 to 4 years is best in case you wish to qualify for a home loan.
• Income: Monthly salary or income is a crucial parameter that the bank assesses to assess your home loan eligibility. If you have a decent income, it does not become difficult for you to make your payments monthly.
• CIBIL Score: Without a good credit history, chances are high that your home loan application may receive a denial.
• Property Age and Type: Banks do not usually approve home loans for properties built by developers who are their partners. And if it's an old house, the bank may lend a small portion of the price.
• Age: Age is a huge factor that drastically impacts your home loan application's eligibility. As far as banks are concerned, borrowers can repay their loan satisfactorily before 60 years, i.e., before their retirement age.