IIFL

Home Loan Eligibility Calculator

Buying your dream home is a huge investment. Among other parameters, assessing your financial status is the most significant one. While buying a house with your liquid cash has several benefits, a home loan becomes a saviour solution that saves tax and ensures enough liquidity.

If you plan to buy a home recently, this post offers comprehensive information on a home loan eligibility calculator. So, what do you mean by home loan eligibility? Let's read this post to gain a deeper understanding of home loan eligibility, how it is calculated, the criteria, and more.

What is Home Loan Eligibility?

Before you understand how to calculate home loan eligibility, you must learn what exactly home loan eligibility is.

As a house seeker applying for a loan, it is imperative to understand your eligibility criteria first. But you may ask yourself - how to calculate home loan eligibility?

On that note, this post comes as a saviour solution. Here, we will give you a detailed analysis of how to calculate your loan eligibility using a calculator. Note that the eligibility criterion determines whether you qualify for the home loan or not. A lending bank conducts loan eligibility screening and assesses your eligibility. The bank takes into consideration your financial status by assessing your credit score, documents, monthly income, age, and property type/size/age you are buying.

How Is Home Loan Eligibility Calculated?

The lending financial institute considers a few parameters before approving your loan application. Using a house loan calculator is the most straightforward method to determine your eligibility for a house loan. The home loan eligibility calculator India can be calculated.

Whether you are a self-employed or salaried individual, a house loan seeker needs to enter basic information like your official name, email ID, PAN number, monthly income/salary, and number. By entering the above details, you can calculate the eligibility for house loans.

Home Loan Eligibility Criteria

The home loan seeker must assess their eligibility in order to qualify for a property loan. It ensures that the individual (whether salaried or self-employed) repays the amount without any defaulting issues. Failure to meet the eligibility might result in denial of your application. As a result, it leaves a negative mark on your credit profile.

Age criteria for a salaried person: 18-60 years of age
Age for self-employed individuals: 18 to 75 years
Salaried individual's total work experience: Minimum of 2 to 3 years
Credit Score for a house loan should be a minimum of 725 or higher
The individual should earn a minimum salary every month (some banks avail loans to individuals who earn Rs. 10000 per month, while others lend money to people who earn Rs. 25,000 p.m., so it depends from one financial institute to another)
The nationality should be Indian, and the individual should reside in the nation
Business vintage: a minimum of 5 tears

Depending on your application, your amount for the home loan varies from one individual to another. So, choose the best home loan amount eligibility calculator to assess whether you qualify for the loan or not.

How To Use IIFL's Home Loan Eligibility Calculator?

Step 1: Go to IIFL's website and click on the home loan eligibility calculator link
Step 2: Enter your monthly income amount
Step 3: Next, fill in your current expenses like house rent, insurance premiums, other loan EMIs, etc.
Step 4: Now choose things like preferred property location, loan tenure, any past loans
Step 5: Hit 'Calculate', and the calculator will crunch numbers to show the maximum loan amount you can get
Step 6: Play with the inputs by changing income, expenses, and locations - to find the best loan amount match for your budget

Factors Affecting Your Housing Loan Eligibility

The top factors that affect housing loan eligibility include the following:

Employment: An employee with a history of frequently changing jobs may not be eligible for the loan as their income is unpredictable. So, working for at least 3 to 4 years is best in case you wish to qualify for a home loan.
Income: Monthly salary or income is a crucial parameter that the bank assesses to assess your home loan eligibility. If you have a decent income, it does not become difficult for you to make your payments monthly.
CIBIL Score: Without a good credit history, chances are high that your home loan application may receive a denial.
Property Age and Type: Banks do not usually approve home loans for properties built by developers who are their partners. And if it's an old house, the bank may lend a small portion of the price.
Age: Age is a huge factor that drastically impacts your home loan application's eligibility. As far as banks are concerned, borrowers can repay their loan satisfactorily before 60 years, i.e., before their retirement age.

FREQUENTLY ASKED QUESTIONS (FAQ)

Are you the right candidate to use a home loan calculator in India?

People residing in India who wish to apply for a home loan can use such a loan. If you want to buy your dream home (either self-employed or salaried), you can apply for a home loan. The candidate should be between 18 and 70 years of age.

What’s the purpose of using a home loan eligibility calculator?

A home loan eligibility calculator lets dream home buyers calculate their eligibility. They use the calculator in order to check the home loan amount. It’s a perfect tool for determining your rate of interest, tenure, and EMI you need to pay every month.

Do you need documents as a proof while applying for a home loan?

Yes, you need a few documents when applying for a home loan, and they are your photo ID, address proof, income proof, and property documents.

Is there any maximum period for repaying your house loan?

Yes, the maximum period for repaying your house loan is up to 25 years.

How do financial institutes assess your eligibility criteria?

A lending bank or financial institute assesses your home loan eligibility by determining your income, credit score, current loan obligations, work experience, age, and more.

How should you use a home loan eligibility calculator?

A property buyer needs to fill in the details like interest rate, tenure, and the loan amount in the eligibility calculator. This gives them a tentative amount they need to repay monthly.

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Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.
Pay 20% upfront margin of the transaction value to trade in cash market segment.
Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued vide circular reference NSE/INSP/45191 dated July 31, 2020 and NSE/INSP/45534 dated August 31, 2020 and other guidelines issued from time to time in this regard.
Check your Securities /MF/ Bonds in the consolidated account statement issued by NSDL/CDSL every month.
Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors.
KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."

www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.

Risk Disclosure on Derivatives

9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
On an average, loss makers registered net trading loss close to Rs. 50,000.
Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.

Copyright © IIFL Securities Ltd. All rights Reserved.

Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248

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We are ISO 27001:2013 Certified.

This certificate demonstrates that IIFL as an organization has defined and put in place best-practice information security processes.

ATTENTION INVESTORS

Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020
Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.
Pay 20% upfront margin of the transaction value to trade in cash market segment.
Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued vide circular reference NSE/INSP/45191 dated July 31, 2020 and NSE/INSP/45534 dated August 31, 2020 and other guidelines issued from time to time in this regard.
Check your Securities /MF/ Bonds in the consolidated account statement issued by NSDL/CDSL every month.
Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors.
KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."

www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.

Risk Disclosure on Derivatives

9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
On an average, loss makers registered net trading loss close to Rs. 50,000.
Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.

Copyright © IIFL Securities Ltd. All rights Reserved.

Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248

We are ISO 27001:2013 Certified.

This certificate demonstrates that IIFL as an organization has defined and put in place best-practice information security processes.