Home Loan Eligibility Calculator

What is home loan eligibility?

Every borrower needs to meet the eligibility criteria required to qualify for a home loan. This ensures that he/she can repay the loan amount effortlessly without defaulting. Failing to meet the eligibility criteria may lead to rejection of the loan application, leaving a negative mark on the individual’s credit profile. So, ensure to complete the processing faster and smoothly by fulfilling the required eligibility criteria.

Home Loan Eligibility Criteria

Home loan eligibility is dependent on many factors such as your salary, current age, credit score, location, total work experience and other monthly financial obligations. Bajaj Finserv brings easy-to-meet eligibility criteria, making the Home Loan more accessible. Below is a chart with details.

Salaried applicants can avail up to Rs. 3.5 Crore as Home Loan while self-employed individuals can apply up to Rs. 5 Crore. Know the complete Housing Loan eligibility criteria and documents required for home loan before applying.

Home Loan Eligibility Based on Salary

One of the eligibility criteria that determine how much loan you can avail is your net salary (in-hand salary). Your salary is crucial as it helps in forecasting your repayment capabilities.

Your income will determine the loan amount you are eligible for. Lenders will consider your take-home salary, minus certain common deductions such as gratuity, PF, ESI, etc. The take-home salary will determine the EMI amount you can afford and thus the total loan amount you can borrow.

For instance, if your take-home salary is Rs. 25,000, you can avail as much as Rs.18.64 lakh as a loan to purchase a home worth Rs. 40 lakh (provided you have no existing financial obligations.) But if your take home is Rs. 50,000, you can avail a loan amount of Rs. 37.28 Lakh for the same property. Subsequently, if your take-home is Rs. 75,000 you can increase your eligibility up to a loan amount of Rs. 55.93 Lakh.

Home Loan eligibility based on age

Age is another determining factor when it comes to loan tenure. The maximum tenure that you can avail is 20 years.

You will be able to avail a longer repayment tenure if you are of a lower age. You can also avail a home loan of higher value provided you have a high income.

Salaried applicants have to be between the ages of 23 and 62 years to apply for a home loan. Self-employed applicants have to be within the age bracket of 25 and 70 years to avail one.

The following table shows the maximum tenure individuals are eligible for based on their age:

How to Check Home Loan Eligibility?

Individuals can easily check their home loan eligibility criteria on the official website of their preferred lending institution. Although most key requirements are usually the same, certain eligibility criteria may differ from lender to lender. These eligibility criteria are basically a set of parameters based on which a lender can assess a borrower’s creditworthiness and past repayment behaviour. It depends on several factors, including credit history, age, credit score, financial obligations of an individual along with FOIR and financial status.

Another easier and quick way to determine loan eligibility is to use an online home loan eligibility calculator. One can use this calculator to work out a personalised quote that can possibly meet the loan amount requirement on favourable and affordable means.

How is home loan eligibility calculated?

The eligibility calculator functions on a mathematical formula to evaluate the eligible loan amount. It takes into consideration loan tenure, net monthly salary, existing obligations or EMIs, other monthly incomes, etc.

What is an eligibility calculator for a home loan?

An easier way to check home loan eligibility is by using an online calculator. The Bajaj Finserv Home Loan Eligibility Calculator instantly computes the amount you are eligible to borrow. It helps in better financial planning and reducing the chances of application rejection. This tool also eradicates the hassle of manual calculation completely.

With Bajaj Finserv, access this online calculator whenever you need from anywhere and use it for free.

How to Use a Home Loan Eligibility Calculator?

Potential borrowers can easily use an online housing loan eligibility calculator following some quick steps as mentioned below.

First, individuals need to enter their date of birth and city of residence in the respective fields of the calculator.

Next, one needs to set a value for some parameters on the home loan eligibility calculator. These include:

• Net monthly salary
• Loan repayment tenure
• Other sources of monthly income
• EMIs of any existing loan along with other obligations

Before going forward with a loan application, individuals must assess all eligibility criteria prescribed by various lenders. This will help one to opt for a lender that can provide housing loans at attractive terms to make repayment comfortable with EMIs spread over a favourable tenure.

Factors Affect Home Loan Eligibility?

Some of the key factors that affect an individuals’ home loan eligibility are stated below:

• CIBIL score: Applicants possessing an ideal CIBIL score above 750 are more likely to avail of a home loan at affordable terms that make repayment comfortable.
• Fixed obligations to income ratio: Lenders are likely to offer housing loan options at favourable terms to individuals with a low FOIR. A low FOIR value indicates a higher disposable income, thereby increasing the chances of the borrower repaying the loan amount timely.
• Age of the applicant: The age of the borrower dictates the tenure of loan repayment. An extended repayment tenure will have smaller EMIs, thereby making it easier for the individual to repay the loan without defaulting.

Apart from these, employment status, monthly income, property details and loan-to-value (LTV) ratio also affect home loan eligibility.

How to Increase Home Loan Eligibility?

Listed below are some of the ways to increase home loan eligibility and improve the chances of availing of a housing loan at favourable terms and home loan interest.

• Improve CIBIL score: Lending institutions tend to provide home loans at attractive interest rates to individuals who possess an ideal CIBIL score above 750. Timely payment of bills, EMIs, credit card dues and not applying for multiple credit products simultaneously are some ways to improve CIBIL score.
• Clear existing loans: Lenders also assess loan repayment capacity by gauging an individual’s debt-to-income ratio. Hence, clearing existing loans before applying for a new one can increase home loan eligibility.
• Opt for a joint home loan: The home loan eligibility improves if one applies for this credit product jointly with an earning co-applicant or spouse.