Home Loan Eligibility Checker: Your Path to Approval - Loan Trivia


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Wednesday 6 March 2024

Home Loan Eligibility Checker: Your Path to Approval

As per a recent survey, the Indian home loan market is currently valued at about $300 Billion and the market is expected to grow at a CAGR of 15% per annum. The demand for home loans is expected to grow steadily in the coming years. This growth can be attributed to two reasons. First, the majority of Indians still see the housing sector as a safe investment avenue and so, a lot of Indians buy homes purely from an investment perspective. Second, with property prices increasing with each passing year, it is difficult for homebuyers to afford home purchases without a home loan. However, home loans are not available to everyone in India. In fact, only those individuals who meet all the home loan eligibility requirements get home loans. So, what is home loan eligibility?

Lenders do not sanction loans to every individual who applies for one. All applications are judged against various factors, such as age, income, credit score, etc. Based on these factors, lenders decide the home loan amount they qualify for. This is known as home loan eligibility. Individuals applying for a home loan can calculate their home loan eligibility using the home loan eligibility calculator, which is an online tool that not only tells loan applicants the loan amount they qualify for but also their EMIs for the loan amount they want to borrow. The home loan eligibility calculator is fairly easy to use. Here are the steps involved in using the calculator. 

Steps to Use a Home Loan Eligibility Calculator

1. To start with, access a home loan eligibility calculator. You will find this tool on your lender's website. However, if you don't, search the internet and you will easily find many different options to choose from. 

2. Next, enter the loan amount you wish to borrow. After this, select your desired loan tenor.

3. You will now be required to enter your age, gender, income and occupation. 

4. You will also have to share with your lender through the home loan eligibility calculator your current EMI obligation. 

5. Once you enter these details, the home loan eligibility calculator will tell you the loan amount you are eligible for and your loan EMIs along with the total cost of borrowing the loan. 

If you are happy with the results, you can apply for the same combination of loan amount and loan tenor. If the EMIs seem too high or too low, you can try different combinations of loan tenor and loan value until you arrive at a loan amount and loan tenor combination that works for you and that you are okay with.

Benefits of a Home Loan Eligibility Calculator

You should use the home loan eligibility checker for the following reasons:

1. The home loan eligibility checker is quick and accurate. It saves time and energy which borrowers can devote to other tasks, such as finding the right lender for them and negotiating with them for loan most beneficial loan terms and conditions. 

2. It helps borrowers figure out the right combination of loan tenor and loan value for them. By doing so, the calculator saves borrowers from missing EMIs, defaulting on loan repayment and incurring penalties. 

3. The home loan eligibility checker can be trusted for accuracy. It completely removes the chances of errors entering into calculations. The same is not true of manual calculations. 

In short, a home loan eligibility checker is a very important tool and all home loan applicants must make this tool a part of their journey.

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