How to Calculate Home Loan Eligibility Online

Buying a house nowadays has become easier as several financial institutions are providing home loans with flexible tenure. Several financial institutions offer home loans at a competitive interest rate and require minimal documentation.

You can also use a home loan to renovate your home. However, eligibility for a home loan depends on a number of variables, including the amount of your monthly income, your age, credit score, monthly expenses, and your overall ability to repay the debt. You can calculate your home loan eligibility using a home loan eligibility calculator. This will save you both time and effort.

 How to Use Home Loan Eligibility Calculator

This tool is available online. You can easily calculate your home loan eligibility by providing your gross income, tenure, rate of interest, and other EMIs (if any).

Eligibility Criteria for Home Loan

Below are the details about the eligibility criteria that you must fulfill in order to obtain a home loan:

Employment Type	Salaried	Self-Employed
Age Limit	Between 23 to 26 years	Between 25 to 70 years
Annual Income	₹10,000 monthly or above	₹2 Lakhs annually or above
Work Experience	Minimum 3 years	Minimum 5 years (Consecutively)
Type of Residence	Permanent or non-resident Indian (NRI)
Required Credit Score	750 or above

Important Factors Affecting Your Eligibility for a Home Loan

Age

The lender uses your age to estimate the number of years you will have to repay the loan. This is one of the factors that make it challenging for people to lock in a longer payback term time with the lender when they are in an advanced stage of their life. In order to make the house loan EMI repayment process smoother, it is advisable that you apply for a home loan during your years of highest earning potential.

Income

Your income also plays an important role in establishing your eligibility for a home loan. The lender may determine how you will handle your funds for house loan EMIs based on your salary. Hence, you should have a reliable source of income when applying for a home loan because it will improve your overall eligibility.

CIBIL Report

When reviewing your home loan application, lenders will consider your CIBIL report. It determines your creditworthiness. When you apply for a home loan, the lender pulls a report from the CIBIL database. You have a better chance of approval if you have a CIBIL score of 750 or above. It may also influence the rate of interest on your home loan. 

Loan Repayment Tenure

Choosing an extended payment term for your home loan will increase your eligibility. A longer-term reduce your EMI obligations, making them more bearable.

Additional Financial Commitments

Individuals with a debt-to-income ratio of 40:60 are preferred by lenders. Your prospects of being approved for a mortgage are higher if this ratio is low. An excessive number of open credit accounts does not present a favorable picture since it suggests bad credit activity.

Ways to Improve your Home Loan Eligibility

Prospective borrowers and homeowners can increase their chances of getting a mortgage in a number of ways. Some strategies which you may use to increase your ability to obtain a mortgage are listed below:

• Include a relative as a co-applicant.
• Get an organized repayment plan.
• Make sure you have a consistent income and stable finances.
• Describe any extra revenue sources in detail.
• Keep track of the variable elements of your pay, such as incentives, bonuses, and one-time cash payments, among other things.
• You must file a dispute right once if you discover any mistakes with your CIBIL score. Typically, a credit agency needs between 30 and 45 days to remedy errors.
• A good credit history is essential. You must not have any remaining debt and a good repayment history.

Top Financial Institutions Home Loan Eligibility

Financial Institution	Loan Value	Max Repayment Tenure	Age	Maximum Loan Value on Property Value
Bajaj Housing Finance Limited	₹2.5 Crores	30 years	23 to 70 years	85%
ICICI Bank	₹5 Crores	30 years	21 to 65 years	85%
PNB Housing Finance Limited	₹15 Crores	30 years	21 to 65 years	85%
Home First Finance Company	₹40 Lakhs	20 years	21 to 68 years	90%
LIC Housing Finance	₹15 Crores	30 years	21 to 70 years	80%
Union Bank of India	₹15 Crores	30 years	18 to 75 years	90%
Shubham Housing Finance	₹50 Lakhs	20 years	21 to 65 years	80%

FAQs

1. What are the prerequisites for a home mortgage?

Below are the eligibility criteria for a home loan:

• You must be a citizen of India.
• You must have at least three years of stable employment.
• You must be between 23 and 62 (may vary across the lender).

2. What are the minimum qualifying requirements for an NRI for a home loan?

Non-Resident Indians (NRIs) are considered by lending banks if they earn $3,000 per month (for the United States and other countries) and have been actively working in their profession for a total of two years. However, this condition may differ from lender to lender. Additionally, the age of the candidate must be at least 24 years and no older than 60 (may vary across the lender).