Home Loan Eligibility Calculator

 Home Loan Check Eligibility :

Buying your dream house in the current times is definitely a challenge. The price hikes happen ceaselessly while certain part of the cities is becoming less and less livable. But the good news is, interest rates are at an all-time low. Yes, applying for a home loan could be a swift solution to each one of your house-related financial crunch. But like every other loan, your bank/ financier will demand you to provide proofs that you are more than capable of settling the loan within the stipulated tenure.

 Home Loan Eligibility Criteria :

1. Loan eligibility criteria differ for each banks / lender.
2. Approvals are based on borrowers' incomes, credit profiles and existing relationships with the bank

Age	Minimum: 21 yrs. Maximumn: 65 yrs. (depending on type of employment)
Minimum Net Annual Income	Rs. 5 - 7 lakhs depending on type of employment, EMIs offered up to 50% of net income, on average
Employment Type	Self-employed or Salaried
Status of Employment	Regular, at least 1 yrs. In current job / business / profession, at least 2 yrs. of prior employment
Type of residence	Owned / Rented
Status of Residence	At least 1 yr. at current place of stay
Type of property being purchased	Affects loan amount eligibility

 Documents Required for Applying Home Loan :

Supporting documents vary according to lender requirements:

1. Signed application, photographs affixed
2. Identity Proof : Passport / Voter ID / PAN Card / Aadhar card
3. Residence Proof: Passport / Voter ID / Driving License / Water Bill / Electricity Bill / Lease agreement / Aadhar card
4. Income Proof :
   1. Salaried individuals - Latest Salary Slips (3 months)/ Current Salary Certificate
   2. Self-employed persons - Latest bank Statements (3 - 6 months)/ Audited financial statements
5. Tax Proof :
   1. Salaried individuals - Latest Form 16.
   2. Self-employed persons - Latest Income Tax Return Form.
6. Employment Proof :
   1. Salaried individuals - Employment certificate
   2. Self-employed persons - Legal documents pertaining to establishment of the business / profession e.g. MOA / Partnership Deed etc.
7. Property Documents
8. Processing Fee Cheque
9. Co-applicant's (if any) documentation

 Example of Calculation :

Kalpesh want to buy a new home on loan. His salary is Rs. 75,000 per month. He can pay 50% of salary for EMIs. He already paying one existing EMI of Rs. 10,000.

So, New Possible EMI will be:
New Possible EMI = Salary Amount * % of Salary
New Possible EMI = 75,000 * 50% of Salary = Rs 37,500
Here, one existing EMI of Rs. 10,000. So it will subtracted from new possible EMI value and so the new possible EMI will be 37,500 - 10,000 = Rs. 27,500.
On this new possible EMI with interest rate of 8.7% and 20 years of tenure the loan based on salary will be of Rs. 31,23,144.

Check eligibility condition of property value. Property value is Rs. 1,00,000 and you can pay 60% of property value for EMI. So, the 60% of property value is,
Loan Based on Property = Property Value * % of property value
Loan Based on Property = Rs. 1,00,000 * 60% = Rs. 60,000

In last, Check eligibility condition of agreement value. agreement value is Rs. 1,50,000 and you can pay 80% of property value for EMI. So, the 80% of property value is,
Loan Based on agreement = Agreement Value * % of agreement value
Loan Based on agreement = Rs. 1,50,000 * 80% = Rs. 1,20,000

Loan based on salary	Rs. 31,23,144.
Loan based on property	Rs. 60,000.
Loan based on agreement	Rs. 1,20,000.
EMI per lakh	Rs. 881

Now, Minimum of above first three amount is eligible for home loan. In this case the eligible loan amount will be of Rs. 60,000.

 How to Increase Your Home Hoan Eligibility ?

Eligibility is not an easy thing to assess. The banks and lenders will be considering your present liabilities, income, assets, etc. while calculating your home loan eligibility. In case the mortgage requirement is slightly higher that the eligible loan amount, some changes in the way you present yourself can help in increasing the eligibility factor. Tips to increase you eligibility for a home loan are mentioned below:

1. Clearing Existing Loans - Ensure that you pay diligently towards your credit card outstanding or personal loan instalments. These can make the lender reject your application. The ideal thing to do is clear all dues and collect a no-due certificate before applying for a home loan. Ensure that your CIBIL report reflects these payments when you apply for home loan.
2. Variable Pay - Ensure that you keep track of the variable pay that you get with your salary package. Calculation of eligibility towards a home loan also depends on this factor.
3. Rental Income - If you have a house that is not being used by you, lease it out. The money that you earn as rental from this property can be used by you to show additional income source when you apply for a home loan. Your loan value can easily be enhanced by adding the rental income with our regular earnings.
4. Increase in Tenure - The tenure of the home loan and the eligibility factor are directly proportional to each other. The eligibility increases upon increasing the tenure of the home loan. However, the maximum tenure that can be availed at present stands at 30 years.
5. Income of the Spouse - In case your spouse has a regular source of income, then applying for a joint home loan can prove to be advantageous. The home loan eligibility goes up dramatically if you apply for a home loan with your spouse. This also suggests that both of you will have to repay the loan together.
6. Take the Time You Need - Before making an application for a home loan, it is advisable that you take a look at your credit score. Look for errors on your report. In case, you find an error, ensure that it gets cleared by CIBIL. In order to get a loan quickly, do not apply with multiple lenders. Instead, find out the offers that you can get from different lenders. If the CIBIL score that you have is good, different lenders will be more than satisfied to offer the loan amount to you. Before you choose your lender, speak to an existing customer of that lender. Easy schedule of repayment, competent rates of interest and good services are the things to look at while choosing a lender.
7. Step up Loans - Step up loans can be considered by you if you wish to increase your home loan eligibility factor. This is a great option for people face a lot of struggle initially, but get rewarded as they get established. Example – Chartered Accountants and Doctors. Under step up loans, lower EMIs will be offered with the loans. The instalments will go up gradually in the future.