When planning to buy a home or take a Loan against your property, one of the first questions that comes to mind is: “How much Loan am I eligible for?” Lenders use a combination of financial parameters to calculate your Home Loan eligibility. Understanding these factors helps you to plan your finances effectively.
The first step in doing this is to use a Loan Against Property eligibility calculator, which enables you to estimate your Loan eligibility within minutes. But before diving into how the calculator works, it is essential to understand the core elements that influence Home Loan eligibility.
Key factors lenders consider while calculating eligibility
- Age is an essential factor in assessing Home Loan eligibility. An individual applying for a Home Loan should be at least 21 years old at the time of application and should not exceed 65 years of age at the end of the Loan tenure.
- Every salaried professional and business owner is eligible to apply for a Home Loan.
- Salaried Loan applicants from cities such as Mumbai and Delhi are expected to earn a minimum of Rs. 25,000, and applicants from non-metro towns should have a monthly income of Rs. 20,000.
- Salaried employees should also have a minimum of one year of work experience.
- Self-employed individuals applying for Home Loans should earn a minimum yearly income. Every lender assesses the income requirement based on market conditions and other factors.
- Every individual applying for a Home Loan should maintain a good credit score. A score of 700 or higher is generally considered ideal by most lenders.
How to benefit from a Home Loan eligibility calculator?
The Home Loan eligibility calculator is a user-friendly tool that helps you get an instant estimate of how much Loan you can avail based on your financial profile.
- Enter the value of the property
You need to research the property value and conduct thorough market research to determine which properties fall within your budget.
- Select the type of property
The type of property is an essential factor. The property value varies based on the type of property; therefore, please select the correct property type to avoid incorrect estimates.
- Property details
Provide the estimated market value of the property and whether it is self-occupied, rented, or vacant. This affects the eligible loan amount under LAP.
- Monthly income
Enter your monthly income that you receive after tax deductions.
- Existing EMIs
It is essential to mention your existing EMIs. The calculator will be able to incorporate these additional expenses while assessing your eligibility.
- Interest rate and tenure
Lastly, select the interest rate provided by the lender and the required tenure from the drop-down list.
Conclusion
Lenders follow a structured process when evaluating Housing Loan eligibility. Using tools like the Loan Against Property Eligibility Calculator can empower you to take control of your Loan journey. It not only provides an accurate estimate but also helps you prepare in advance.
