The market for loans and credit financing is expanding fast. In April of 2019 itself, the total value of loans sanctioned saw a growth of 13% against the same month of the previous year. It means securing your first house today is easier than ever with a home loan.
However, you need to check your eligibility first to ensure that you can apply for a home loan and receive a consequent successful approval. Various financial institutions provide online tools like Housing Loan eligibility calculator to confirm one’s eligibility.
What is a Housing Loan Eligibility Calculator?
A person’s repayment capacity critically defines his/her eligibility to avail a home loan. This loan eligibility calculator enables you to find out your loan eligibility based on various factors enlisted in home loan eligibility criteria.
Entering all necessary details will help you arrive at the loan amount you can apply for and avail successfully.
Eligibility Criteria to Meet for Successful Application
The eligibility criteria for a Home Loan vary based on the source of income you have. So, before you begin using the housing loan eligibility calculator tool online, know whether you are eligible to apply for the same or not. Here are the eligibilities that a salaried as well as a self-employed individual need to meet.
For a Salaried Individual
- Must be an Indian resident.
- Should be drawing a salary and have a work experience of at least 3 years.
- Must be between 23 and 62 years of age.
A salaried individual also needs to meet two other eligibilities based on the city he/she lives in.
- When living in cities like Faridabad, Delhi, Ghaziabad, Navi Mumbai, Mumbai, Gurugram, Thane and Noida, one must earn a minimum of Rs. 30,000 as net monthly salary. The individual should also own a property with a minimum value of Rs. 15 Lakh.
- When living in Aurangabad, Ahmedabad, Baroda, Bangalore, Bhopal, Chennai, Bhubaneswar, Calicut, Cochin, Chandigarh, Coimbatore, Hyderabad, Goa, Indore, Jamnagar, Jaipur, Jodhpur, Kolkata, Kolhapur, Lucknow, Mysore, Madurai, Nagpur, Pune, Nasik, Rajkot, Tiruchirapalli, Surat, Trivandrum, Vijayawada, Vapi and Vizag, one must earn a minimum salary of Rs. 25,000/month. The person also needs to own a property with a minimum value of Rs. 15 Lakh.
For a Self-employed Individual –
- Must be an Indian resident.
- Must have continued the current business for at least 5 years.
- Must be between 25 and 70 years of age.
Match your eligibility as per your source of income and compute the loan amount with a housing loan eligibility calculator. Before applying, know the important tips to 0 approval.
Know the Documentation Requirements
You must also know the documents required for home loan so that once you apply for it, you receive hassle-free, instant approval by submitting them.
- Identity proof
- Proof of address
- KYC documents
- Latest salary slips or Form 16
- Last 6 months’ statement of bank account
- Documents for business proof in case of self-employed. It should be for a minimum of 5 years.
Now, follow these steps to calculate the loan amount you are eligible for.
6 Steps to Calculate Home Loan Eligibility
Step 1 – Select your location
Step 2 – Choose your date of birth
Step 3 – Fill in the net salary and other income you receive
Step 4 – Choose your preferred tenor
Step 5 – Enter any monthly financial obligations you currently have
Step 6 – Know the amount you are eligible to avail by clicking on the ‘Check your eligibility’ tab
Now, when you have all the eligibilities at hand, you may successfully apply for a home loan.