Calculate Home Loan Affordability with Online Calculator
Before starting the application process, you should figure out your housing loan eligibility. Knowing this will help you keep track of your money. It will also help you make sure that you can pay your instalments on time without breaking your budget.
You can quickly decide your housing loan eligibility by using free online house loan EMI calculators. They are available on the websites of leading and reputable banks. Most of these calculators include checkboxes for various factors. These factors influence your housing loan eligibility. Age, gross monthly income, down payment, tenure, EMIs, interest rate and so on are all examples of these categories.
Advantages of Using a Housing Loan Eligibility Calculator
Housing loan eligibility calculators have several benefits. Listed below are some of them:
- User-friendly
The eligibility calculators are made to be easy to use so that as many people as possible can figure out if they can afford a home loan. You don’t need to be a financial expert to use the calculator; you can just go with your gut. You just need to fill in the boxes or move the sliders to give the calculator the information it needs, and it will give you the results.
- Free
This is probably one of the best advantages of an online housing loan eligibility calculator. You don’t need to pay anything to use it. Also, if you need to, you use it as many times as you want.
- Needs minimum information
The calculators don’t ask for much information. They only ask for specific information about your finances that will affect your ability to pay.
- Saves time
Housing loan eligibility calculators help save a lot of time. This is because you don’t have to go to lenders to talk about loan rates and figure out if you can pay the loan and how much you can borrow. Instead, you can use online calculators to find these details from the comfort and privacy of your home.
- Helps with financial planning
The calculator lets you know how much of a loan you will be able to get. It also informs you how much you can spend on a house based on your income and bills. Once you have these numbers, it will be easy to plan your budget and figure out what kind of assets you should try to buy.
- Offers customized results
Each person’s financial situation is different. So, it’s obvious that everyone’s ability to pay will also be different. Each user also expects results that are relevant to them. This is clearly what the calculator does. It asks users for information and then gives them results based on that information.
Factors That Affect Your Housing Loan Eligibility
There is a reason why housing loan eligibility calculators ask for your financial information. It’s because all of those things affect your ability to pay. These factors are given below:
- Your monthly income
If your monthly income is high, it will be easy for you to pay it. This is because someone with a higher income would be more likely to be able to pay back the loan each month.
- Down payment
As a down payment, a borrower usually has to pay 20% of the property’s cost. The lending institution pays the remaining 80%. But if you can come up with a bigger down payment, you could get a bigger loan. It will also make it easier for you to pay your debts.
- Existing EMIs
If you already have EMIs, it will make it harder for you to pay for things. It’s because your current EMIs make it harder for you to pay off the home loan every month.
A person’s ability to pay depends on more than just these factors. The calculator doesn’t take these things into account, but they are important for getting a home loan. In the end, they affect your ability to pay, so it’s important to know about them.
- Your current age
Age plays a big role in how much of a home loan you can get. Younger people have a better chance of getting bigger home loans because they have more time to pay back the loan. For older people, it’s the other way around. Similarly, it also affects who can afford one. If you’re young and financially stable, you’ll be able to afford more than someone older.
- CIBIL score
Before giving you a home loan, every lending institution looks at your CIBIL score. If your score is low, you might not even get the loan you want. Due to this, it can be said that your ability to pay is directly related to your CIBIL score. If your CIBIL score is higher, you will be able to afford more.
- Availability of security
Lenders see collateral as safety for their investment. Hence, it always makes it easier to get a home loan. In fact, your chances of getting a loan may be higher if you have collateral but a low CIBIL score.
How to Use An Housing Loan Eligibility Calculator
The steps below show how easy it is for people to use an online housing loan eligibility calculator.
- Step 1
Add your date of birth and where you live in the calculator’s empty fields.
- Step 2
The next step is to give the home loan eligibility calculator values for some parameters. These things are:
- Net monthly salary
- Length of time to pay back a loan
- Other monthly sources of income
- EMIs on any existing loans and other bills
- Step 3
The next step is to look at all of the eligibility requirements set by different lenders. This will help you choose a lender who can give you a good deal on a home loan and spread out your monthly payments over a good length of time.
Conclusion
Your housing loan eligibility decides whether or not you are eligible to borrow a home loan. When you apply for a home loan, your lending institution performs a housing loan eligibility check. They assess your financial situation, creditworthiness, and repayment capacity based on your records, credit score, and financial history.
You have a better chance of getting a home loan if you make a good impression on the lender. As a result, before applying for a housing loan, it is vital to know the eligibility criteria.
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