5 easy ways to calculate eligibility for a home loan
Before buying your dream apartment, there are various financial and practical considerations. The most important of which is how eligible are we for the home loan. The process of applying for home loan is very tedious and the feeling of being rejected at any point fills one with bitterness. Thus one should be aware of the criteria and take the help of home loan eligibility calculator to be doubly sure about the bank’s approval.
Let us first quickly go through the several criteria that a bank generally looks before granting the loan to an applicant.
- Employment Stability:The individual should be salaried and employed for at least 2 years in the current job. In case of self-employment, he must have a minimum of 5 years of total earnings.
- Age:Loan approval is easier in case of young individuals. According to the bank’s home loan eligibility calculator, salaried employees in the age group of 20-60 years are eligible for home loans.
- Credit Rating: Good credit rating increases the chance of getting the loan with more flexibility on loan amount, EMI, tenure and interest rates. An outstanding loan on the individual’s part may create a negative impression and the bank may dismiss the loan request at once.
- Place of Employment: Applicants who serve in MNCs, high-profile marketing companies and eminent workplaces improve their chances of getting the loan approved.
- Financial Situation: A stable record of past finances definitely influences interest rate, loan amount and tenure when applying for loan.
If one feels that they fulfilled all the above-mentioned criteria then they can check their status with an online home loan eligibility calculator. The home loan eligibility calculator will ask for 5 standard details like the tenure of one’s service, the estimated loan amount, annual rate of interest, present monthly salary and total monthly EMIs. Then the home loan eligibility calculator processes all your entered details and displays the result whether you are eligible or not and for how much amount.
In just 5 easy steps an applicant can calculate his or her eligibility for a home loan against the monthly salary earned by him. These online calculators provide one with the basic idea of how likely they are to be approved or disapproved for a loan. Follow the 5 steps below and calculate your eligibility for home loan.
- Search online for home loan eligibility calculator and fill in all the basic details about your income and current finances.
- After processing the details, the calculator will give you an EMI figure that fits your budget.
- One may pay the EMI suggested or decrease it a bit to reduce financial burden. But under no circumstances one should exceed the suggested EMI figure.
- The applicant also has to enter the number of years for which they are considering to take the loan. The calculator also asks for the rate of interest against that amount.
- Finally the home loan eligibility calculator will display the suitable loan amount that the individual may request for in the bank.
Last updated on July 30, 2019