What is Home Loan Eligibility?
When you are taking a home loan it is important to be aware of the eligibility criteria set by the lender. This is the first step that you need to complete when you’re applying for the loan. The eligibility criteria vary from lender to lender, and encompass conditions with regards to your income, age, loans that you are paying off, where you stay, etc.
To give you a clearer picture, here’s a look at the eligibility criteria that you have to meet when you take a Home Loan from Bajaj Finserv.
For salaried individuals:
- You should be a resident of India
- You should be between 25 and 58 years of age
- You should have at least 3 years of work experience
For self-employed individuals:
- You should be a resident of India
- You should be between 28 and 70 years of age
- You should have at least 5 years of work experience with regards to your current business
Eligibility is further based on where you stay, minimum net salary per month and minimum property value. It may not be possible to get a precise answer with this information. To get a more accurate result regarding whether you’re eligible or not, you can use a Home Loan Eligibility Calculator
. This calculator instantly lets you know whether you are eligible for a home loan. More importantly, it also tells you the value of the home loan that you qualify for.
Here is how you can calculate your home loan eligibility?
1. Feed in the information:
When you are browsing loans, you can easily check your eligibility by logging on to the lender’s website and visiting the eligibility calculator page. All you have to do is enter the details in the fields provided. You have to fill in your date of birth, after which you can enter your city of residence. Then, enter your income, additional income, desired tenor and the value of your current EMIs or other financial obligations. For this example, let’s assume that you stay in Mumbai, have a salary of Rs.55,000 and seek a home loan with a tenor of 15 years. You also have an EMI of Rs.7,000 that you are currently paying.
2. View your results:
Once you fill in the details, click on ‘Submit’ or ‘Check your eligibility’. For the aforementioned example, you will eligible for a home loan from Bajaj Finserv worth Rs.29,99,237. Based on the results you can decide how much to borrow. You can also see what principal you qualify for once you repay your current EMIs. Once this amount is zero, for example, and all other values remain the same, you will be able to borrow Rs.36,65,734.
Here’s what the home loan eligibility calculator is based on:
The home loan eligibility calculator processes all the information it seeks from you. Essentially, the higher your income, and the lower your existing debts, the better chance you have at getting a substantial loan sanction. Besides this, the home loan eligibility calculator also factors in the financial institution’s policy with regards to the minimum income and minimum property value that each loan applicant must have to apply for a loan. The city where you stay is also taken into consideration. While juggling all the components isn’t possible manually, the calculator’s algorithm makes light work of it.
So, this tool serves as a handy way to check your application’s strength before you apply for a home loan. Once you meet the eligibility criteria, you can proceed to collect the documents required for the home loan
. Using the housing loan eligibility calculator will help you in a number of ways. Here are a few of them.
- You get instant and accurate results, and you can use the calculator as many times as you wish to.
- You can understand the bearing of your current financial obligations on your ability to take a loan.
- You know the prospective loan amount that you qualify for. So, you can set a budget for your home purchase based on the results and save time.
- You can determine if you need to work on your personal finances to improve eligibility. This helps you avoid the negative impact of your application’s rejection on your credit score.
So, using this calculator can help you easily understand whether or not you are eligible for a home loan. You can then make important decisions about how much to borrow and what tenor to select.