Eligibility Check is Required Before Applying For a Home Loan - Loan Trivia


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Monday 18 July 2022

Eligibility Check is Required Before Applying For a Home Loan

Applying For a Home Loan

Recently, many financial institutions have reduced their lending rates and made home loans more accessible. However, prospective borrowers who want to enhance their chances of home loan approval must make sure they are eligible for a home loan in India. Borrowers who want to know their eligibility status can utilize EMI calculators to know the precise or possible amount they can get from their lender.

Several factors affect the process of home loans. Factors, such as current age, monthly income, credit score, monthly financial expenditure, credit history, and retirement age, must be considered before applying for home loan.

How to Use a Home Loan Calculator to Check Your Eligibility

A housing loan calculator eases the process of checking your eligibility online. You just need to fill in the following:

  • Monthly income: Fill in your gross monthly income in rupees.

  • Interest rate: Fill in your preferred interest rate of the HFC you are willing to borrow from. Before you do this, you can scout for the loan interest rate that benefits you.

  • Loan tenor: Fill in your desired loan tenor in terms of years. Note that a longer tenor guarantees more eligibility.

  • Additional EMIs: Fill in other monthly EMIs of any other loans you may have opted for in the calculator. This is the final process and how your home loan will be calculated on net (online).

How the Loan Eligibility Can Be Improved

These easy tips can significantly enhance your home loan eligibility and improve your home loan approval chances.

  • Clear current loans or other short-term debts.

  • Declare or state your additional sources of income.

  • Be sure to provide an organized repayment plan.

  • Add a relative or family member as a co-applicant. Make sure the family member has a constant source of income.

Conditions That Affect the Home Loan Eligibility

In India and abroad, an individual’s housing loan eligibility is measured by their possible means of paying back. Note that lending financial institutions decide based on these factors.

  1. Borrower’s age: This is very important because it indicates the loan's tenor, which also presumes the monthly EMI. For any given amount, you get a lower EMI for a longer tenor and vice versa.

  1. Credit report: Your creditworthiness is an essential factor that must not be neglected. The HFCs measure your creditworthiness with your credit score or report — on your application’s possible acceptance or rejection.

  2. Monthly income: An applicant’s monthly income plays a vital role in determining how much they are capable of handling after considering their liabilities.

  3. Home commitments precedents: Your previous commitments on loans or credits and how well you’ve handled them increase your home loan eligibility chances.

The loan is not so hard to get if applicants do not make it tedious for themselves. Some credible financial institutions or HFCs offer pre-approved offers to make the loan process more accessible. These HFCs offer schemes such as housing loans, loans against property, and more. Applicants can basically check their pre-approved offer by providing their names and contact details.

The points discussed above will definitely help you understand your eligibility on the home loan calculator. Use the home loan calculator, and you’re not far from your dreams.

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