Are you planning to apply for a home loan but need to know whether you are eligible? An easy way to check is to use an online calculator, which uses various factors to determine your eligibility.
With the Piramal Finance home loan eligibility calculator, you enter your details to see if you qualify. This helps home buyers avoid rejection after applying for a home loan.
Eligibility Table
Amortization Chart
Check out the home loan amortization schedule below:
What is Home Loan Eligibility?
Home loan eligibility is based on criteria that determine whether you qualify for a loan. It involves assessing factors like age, monthly salary, credit score, job type, and financial stability. These criteria help evaluate if you have a steady income and fall within an appropriate age range for repayment during the loan tenure. By considering these key factors, the eligibility process ensures that you meet the requirements, reducing the risk of not being able to repay the loan.
How Much Home Loan can I get?
Let’s understand this with some examples with different scenarios
Home Loan Eligibility for Salaried Professional with Stable Income
- Profile: Anita Sharma, 30, Software Engineer, Mumbai
- Monthly Salary: ₹75,000 | Existing EMI: ₹10,000 | Credit Score: 750
- Loan Tenure: 20 years | Interest Rate: 8.5%
- Eligibility Calculation: Net EMI capacity: ₹37,500 - ₹10,000 = ₹27,500
Eligible Loan Amount: ₹50 lakh - Outcome: Anita qualifies for ₹50 lakh to buy a 2BHK in Mumbai.
Home Loan Eligibility for Self-Employed Business Owner with Variable Income
- Profile: Ravi Verma, 42, Business Owner, Delhi
- Average Monthly Profit: ₹1 lakh | Existing EMI: ₹20,000 | Credit Score: 720
- Loan Tenure: 15 years | Interest Rate: 9%
- Eligibility Calculation: Net EMI capacity: ₹50,000 - ₹20,000 = ₹30,000
Eligible Loan Amount: ₹38 lakh - Outcome: Ravi qualifies for ₹38 lakh to expand his business.
Home Loan Eligibility for Young Couple Using Co-Applicant for Higher Eligibility
- Profile: Rajesh & Priya Gupta, 28 & 27, Bengaluru
- Combined Monthly Income: ₹1,20,000 | Existing EMI: ₹15,000 | Credit Scores: 710 & 740
- Loan Tenure: 25 years | Interest Rate: 8%
- Eligibility Calculation: Net EMI capacity: ₹60,000 - ₹15,000 = ₹45,000
Eligible Loan Amount: ₹80 lakh - Outcome: By applying jointly, Rajesh & Priya qualify for ₹80 lakh for a spacious home.
Key Takeaways from These Cases:
- Higher income and lower existing liabilities increase loan eligibility.
- Self-employed applicants’ eligibility is based on profit consistency and average income.
- Applying with a co-applicant can significantly boost loan eligibility
Further assuming an average scenario at 10% interest rate and where there is no existing financial obligation we can have an estimate about the home loan EMI amount you could be eligible for. Here is an estimate over your eligible loan based on your salary.
How to Use Piramal Finance Home loan eligibility Calculator?
Using the Piramal Finance Home Loan Eligibility Calculator is easy. Just follow these steps:
- Enter Your Monthly Income: Add your regular income to see how much you can repay.
- Add Details of Any Existing Loans: Include any current loans or financial commitments you have.
- Choose Interest Rate and Loan Tenure: Select the interest rate and how long you want the loan.
After you enter this information, the calculator will show you an estimate of the loan amount you can get. This makes it easier for you to plan ahead.
-
Row 1
- Salary (₹)
- Eligible Loan Amount (₹)
-
Row 2
- 25,000
- 12,04,284
-
Row 3
- 30,000
- 14,45,140
-
Row 5
- 35,000
- 16,85,997
-
Row 6
- 40,000
- 19,26,854
-
Row 7
- 45,000
- 21,67,710
-
Row 8
- 50,000
- 24,08,567
-
Row 9
- 55,000
- 26,49,424
-
Row 10
- 60,000
- 28,90,281
-
Row 11
- 65,000
- 31,31,137
-
Row 12
- 70,000
- 33,71,994
-
Row 13
- 75,000
- 36,12,851
-
Row 14
- 80,000
- 38,53,707
-
Row 15
- 85,000
- 40,94,564
-
Row 16
- 90,000
- 43,35,421
-
Row 17
- 95,000
- 45,76,278
-
Row 18
- 1,00,000
- 48,17,134
How does Home Loan eligibility calculator work?
The Home Loan Eligibility Calculator helps you determine the maximum loan amount you can qualify for based on your financial details. The calculator uses a method known as the Fixed Obligation to Income Ratio (FOIR), which considers a fixed percentage of your income for EMI payments, after accounting for any existing loan obligations. The eligibility is further refined by calculating the EMI based on the loan amount, home loan interest rate, and tenure you select. Key factors like your income, credit score, existing financial liabilities, and preferred loan tenure all play a role in determining the loan amount you are eligible for. The tool provides a quick and straightforward estimate of your home loan eligibility based on these inputs.
Home Loan Eligibility Criteria
To get a home loan from Piramal Finance, applicants must meet certain key requirements to ensure they are eligible for the loan and can repay it. Here is a simple breakdown:
-
Row 1
- Eligibility Criteria
- Salaried
- Self-Employed
-
Row 2
- Age limit
- Minimum age is 21 years; maximum age is 70 years.
- Minimum age is 23 years; maximum age is 70 years.
-
Row 3
- Credit Score
- Good Credit Score of 700 and Above
- Good Credit Score of 700 and Above
-
Row 5
- Work Experience
- 2 years
- 3 years in same business
-
Row 6
- Income
- The minimum monthly salary or income for salaried is ₹12,000 per month.
- The minimum monthly salary or income for self-employed individuals is ₹12,000 per month.
-
Row 7
- Nationality
- Resident Indians only
- Resident Indians only
-
Row 7
- Loan Tenure
- Up to 30 years
- Up to 30 years
-
Row 7
- Loan Amount
- ₹ 5,00,000 to ₹ 2,00,00,000
- ₹ 5,00,000 to ₹ 2,00,00,000
What are the Factors Affecting Home Loan Eligibility?
Understanding the factors that affect home loan eligibility can help you determine how much loan you can get.
Income & Employment Stability
Piramal Finance sets specific monthly net income requirements for applicants based on their location. When using a home eligibility calculator, you will need to input your annual net income to determine whether your loan application will be approved.
Loan Term
The loan tenure you choose plays a significant role in determining your eligibility. Opting for a longer loan term can reduce your EMIs, making the loan more affordable and increasing your chances of approval. When you enter a longer tenure in a home loan eligibility checker, your eligibility is often higher due to the lower monthly EMI.
Age Limit
We consider how many years you have left as a working professional before retirement. Applying for a loan early in your career increases your chances of approval, as you are more likely to repay over a longer period.
Outstanding Loan(s)
Having multiple loans or debts can affect your eligibility, but a few active loans may not necessarily harm your chances. However, if you have too many unpaid loans or a history of missed EMI payments, it can significantly lower your chances of loan approval.
Credit Score & Credit History
Your Credit Score reflects how well you have managed your credit obligations. It is based on factors like repayment history, credit card balances, and outstanding loans. A credit score of 750 or above (on a scale of 300 to 900) is generally considered ideal for securing a home loan. A good credit score helps assess your repayment capacity and financial reliability.
LTV (Loan-to-Value) Ratio and Property Value
The value of the property you are purchasing is a critical factor in loan eligibility. The higher the market value of the property, the more likely you are to qualify for a higher loan amount. We will also consider the down payment you make, and the loan amount required. A 20% down payment increases your chances of loan approval, while a higher loan-to-value ratio might result in higher interest rates.
How to Improve Your Home Loan Eligibility?
Boost your chances of home loan approval by following these key strategies.
- Choose a Co-Applicant with a Good Credit Score: Apply with someone who has a strong credit history. This can help improve your loan application.
- Keep a High Credit Score (750+): A score above 750 shows you're reliable, making approval easier.
- Ensure Timely Debt Repayment: Paying your debts on time helps improve your credit and shows you are financially responsible.
- Declare Extra Income: Include additional income, such as rent or freelance work. This can help boost your loan eligibility and repayment ability.
- Choose a Longer Loan Term: A longer loan period lowers monthly payments. This makes it easier to get a bigger loan.
- Keep Your Fixed Obligation to Income Ratio (FOIR) Below 40%. A lower FOIR means you spend less of your income on debts. This makes you a more attractive borrower.
- Make a Larger Down Payment: Paying more at the start lowers the loan amount. This can help you gain approval and lower your monthly payments.
Our Happy Customers
Calculate Your Home Loan Eligibility and Apply for a Home Loan
With our advanced Home loan eligibility calculator you can get you exact home loan value. You can further follow the steps and apply for your home loan.
Simple Home Loan Application Process:
- Submit Application: Fill in your details and upload necessary documents for home loan.
- Verification & Approval: Our team reviews your application and verifies documents.
- Loan Disbursement: Once approved, the loan amount is disbursed to your account.
Whether you're planning your home purchase based on your salary or budget, our streamlined application process ensures a hassle-free experience. Apply now and move one step closer to your dream home with Piramal Finance!
Get Home Loan for Different Budgets
Know your monthly EMI for various home loan amounts.
Frequently asked questions
To apply for a home loan at Piramal Finance, you'll need to provide:
- PAN card
- Identity proof (passport, driver’s license, Aadhaar card, voter ID, or government-issued job card)
- Address proof (passport, driver’s license, Aadhaar card, utility bills, etc.)
- Property-related documents (sale agreement, possession certificate, NOC from builder, cost estimate, bank statements, occupancy certificate for existing apartments)
- Income proof for salaried professionals (last 3 months' salary slips, last 6 months' bank statements, Form 16, collateral documents)
- Income proof for self-employed individuals (ITR for the last 2 years, bank statements, audited financials if required)
- Passport-sized photos
Similar Calculators
Recommended Articles
To know more about loans, processes and much more
- Property is a valuable asset that can provide you with a variety of financial benefits...
- 08 Nov 2023
- 5 min read
- A home loan is taken usually for the purchase or construction of a house...
- 08 Nov 2023
- 5 min read