Home loan is a secured loan as your property is mortgaged with the bank until you pay off the complete loan amount. As home loan is the largest debt an individual can take, it is not easy to avail and comes with a long and complex process. To avail a home loan, there are certain factors according to which your home loan eligibility will be determined. These home loan eligibility factors and how to check your home loan eligibility will be discussed here. 

What is Home Loan Eligibility?

Home Loan Eligibility is a defined set of factors or criteria according to which any financial institution, lender or bank will judge the candidate’s repayment capacity and creditworthiness to avail a home loan. Home Loan Eligibility depends on certain factors such as CIBIL score, your financial status, your age, credit history, your job stability and other relevant factors. 

What are the Home Loan Eligibility Factors?

Different lenders have their own set of home loan eligibility criteria. The criteria basis will also vary according to salaried and non-salaried professionals. However, some of the most general factors on which your home loan eligibility majorly depends are-

  • The required age to avail a home loan normally ranges from 18-70 years.
  • The nature and size of your income highly matters. The required income should be more than 15000 INR per month.
  • You need to have an impressive credit report to avail a home loan. The credit score should be considerable. It generally should be more than 700 to avail a home loan.
  • The work experience should be a minimum of 2 years.
  • The LTV (Loan to Value Ratio) can be unto 90% depending on the lender. Usually, it is 80%.
  • The maximum loan amount that you can avail depends on the lender.
  • Home Loan Eligibility also depends on the existing relationship of the borrower and the lender. 
  • If you are having too many prior loan commitments, you may have difficulty in obtaining a home loan. Hence, you should prepay your previous loans to avail a hassle free home loan.

What is a Home Loan Eligibility Calculator?

Home Loan Eligibility Calculator is a tool that can help you to check whether or not or to which extent you are eligible for a home loan. It is an easy online tool using which you can effectively plan your financial obligations. It helps to prevent rejections of your home loan application as it calculates your eligibility based on your repayment capacity and income on a prior basis. 

It is smart to use this tool as you can be able to know the amount of loan you can avail according to your eligibility criteria. 

How to check your Home Loan Eligibility?

This tool is available online on almost every lender’s website easing the whole home loan application process. You can check your home loan eligibility by entering some of your general information such as-

  • Your gross monthly income
  • Your desired loan tenure
  • The interest rate at which your lender is offering the home loan.
  • Any other EMIs you are currently paying.
  • Other general information such as your name, date of birth, employment status etc. 

After entering all the required information, you will be able to check your home loan eligibility and the loan amount that you can avail with the EMIs you will be required to pay. 

The Bottom Line

Before finalizing any lender or moving forward with the home loan application process, the individual should research and study about the home loan eligibility of various lenders. The borrower should access the home loan eligibility calculator to get more clarity and choose the best home loan with a reasonable interest rate and a favorable tenure to ease the repayment process. 

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