Most homebuyers in India have to rely on home loans in order to purchase houses. This is because real estate is quite expensive, and simply relying on savings is not possible. But there is nothing to worry about; there are a lot of home loan plans that a borrower can go through and pick one that suits them. However, before applying for a home loan, a borrower first needs to learn about the home loan eligibility criteria set by lenders.
When financial institutions are evaluating a loan application, they take into account several factors based on which they take the final decision of either approving or rejecting it. These factors include the applicant’s age, income, employment history, credit score, location and type of the property that is being pledged as collateral, and so on. If you are wondering as to how one can calculate their eligibility, there are housing loan eligibility calculators that can help you do that. These are tools that are freely available on most financial institutions’ websites. By using this tool, you will learn about the loan amount that a lender can be willing to offer you.
Why is it important to use a home loan eligibility calculator?
To understand this, let’s take a look at loan applications that have been rejected by lenders. In many cases, these applications are rejected simply because the applicants are not familiar with the lender’s eligibility criteria. You should keep in mind that getting multiple applications rejected is a negative sign for the next potential lender. This is the reason why it is essential to be aware of your eligibility when it comes to getting a home loan. This is where a home loan eligibility calculator can help. This calculator will display the loan amount that a lender can offer based on your profile. If the loan amount satisfies your requirement, you can apply for the loan. However, if not, you will have to improve your loan eligibility or look for a different lender.
How to make use of this calculator to find out about your eligibility?
Using a home loan eligibility calculator is simple. The calculator needs a few details based on which it will display the loan amount that you can be eligible for. First, you need to provide details regarding your city of residence and date of birth. Next, fill up details of your monthly income, monthly debt obligation, repayment tenure of the home loan, as well as any additional sources of income, if you have any. Based on this information, the calculator will display the loan amount.
So, after reading this, you can see how important a home loan eligibility calculator can be. Also, do note that it is also equally important to understand EMI payments before you apply for home loan. This is why it is advisable to make use of a home loan EMI calculator too. Both these calculators can be found online and can be used for free.