Use the Home Loan Eligibility Checker and Ensure Loan Availability - Loan Trivia


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Wednesday 8 May 2024

Use the Home Loan Eligibility Checker and Ensure Loan Availability

A home loan eligibility checker can assist a borrower in finding out the home loan amount they are eligible for. The loan amount eligibility depends on a lot of factors including the applicant's monthly income, credit score, fixed-month obligations, and more. 

The eligibility checker takes into consideration the information an applicant provides and shows them the loan amount. This helps applicants estimate the amount they can get as credit and plan their finances accordingly. 

How to use a home loan eligibility calculator? 

A home loan eligibility calculator allows users to evaluate the loan amount they can apply for based on their various eligibility factors. Here is a step-by-step guide on how to use this online tool: 

Step 1: Navigate to the lender’s home loan eligibility checker. 

Step 2: Enter all the necessary details asked for 

Step 3: Mention all the financial obligations that are present

Upon entering these values the calculator will immediately show the maximum home loan amount an applicant is eligible for. 

How to know if an applicant is eligible for a home loan?

One can use a home loan eligibility checker to know the home loan amount that they are eligible for. They can also check the eligibility requirements for home loans applicable to the financial institution of their preference. 

Though it will differ from lender to lender the following can provide some idea about eligibility criteria for both self-employed and salaried individuals: 

Self-employed individual 

  • An applicant must be self-employed with a business that has a continuity of over 5 years in the present enterprise 

  • An applicant must be between 25 and 70 years of age

  • They should be a citizen of India (resident only)

Salaried individual 

  • An applicant must have a work experience of a minimum of 3 years and a stable source of salaried income through their employment in a private, public, or multinational company. 

  • They should be a citizen of India (including NRIs)

  • An applicant must be between 23 and 75 years of age

Additionally, borrowers must understand that there are several crucial factors that can impact their home loan eligibility. Hence, they must keep them in mind when applying for a home loan. 

What are the factors that affect home loan eligibility? 

Eligibility for a home loan depends on the following factors: 

  1. Applicant’s age 

Lenders determine home loan tenor by the applicant's age. For example, applicants at the early stage of their career have the repayment potential for a long term. 

  1. Stability of income

Lenders consider applicants’ profiles that depict a stable and reliable income source as it has more propensity for timely repayment. 

  1. Credit score 

Applicants who have a high credit score (over 750) stand a much higher chance of receiving quick approval for a home loan. 

  1. LTV

LTV or the Loan-to-Value ratio determines the maximum amount a lender can provide as a percentage of the current value of the mortgaged property.  

  1. FOIR 

FOIR or Fixed Obligation to Income Ratio is a percentage of an applicant’s monthly income and fixed monthly liabilities. A lower FOIR means a higher chance of getting a quick loan sanction. 

Potential borrowers who are using a home loan eligibility calculator should know that many financial institutions extend pre-approved loans to their loyal customers. Therefore, one can check their eligibility for that offer by visiting the lender's official website. With this offer, an applicant can expect a hassle-free loan application process and quick loan disbursal. 

In simple terms, a home loan eligibility checker is an online tool that can give one a general idea of the loan amount they can obtain. It makes the calculation easy for borrowers, helping them choose the right loan amount when purchasing a property.  

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