In recent times, availing a home loan has become more favourable owing to reduced interest rates and other customer-friendly terms of borrowing.
Nonetheless, it is imperative to check the eligibility parameters of different lending institutions before applying for the same. There are two means to check the eligibility criteria.
You can check look through the parameters listed on the respective lender’s website; however, it does not let you evaluate the loan amount you can avail. For this, you can use an online home loan eligibility calculator. Hence, individuals looking for an answer to ‘how much home loan on my salary can I get’ can utilise the home loan eligibility calculator to gauge the same.
Eligibility calculator: Steps to calculate home loan eligibility
A home loan eligibility calculator is a tool that helps to assess how much home loan you can avail on the basis of your salary and other factors.
Following the steps below will help you to calculate home loan eligibility easily.
Step 1 – Visit the lender’s website.
Step 2 – Enter personal details like date of birth, city.
Step 3 – Next, enter income details like net monthly salary and tenor.
Step 4 – Announce if you have any other income from investments, rent, etc.
Step 5 – Fill in the box stating current EMIs or obligations.
Step 6 – Click on the button to check your eligibility.
Step 7 – After getting an idea of how much loan you would get on your salary, you can click apply now to initiate the loan application process.
If you apply for a home loan without adequate knowledge about its several aspects, it might lead to a rejection of the application. Not only will this result in a hard inquiry, affecting your credit score, but it will also lessen the chances of swift loan approval in future. However, some financial institutions offer home loans against relaxed eligibility criteria.
These NBFCs extend pre-approved offers to make the loan availing process easier. These offers are also available to financial products like home loan, loan against property and many more. You can check your pre-approved offer by entering your name and contact details.
Factors determining home loan eligibility
Below is mentioned a list of factors that can affect your home loan eligibility.
- Age: Age is one of the crucial factors that lenders take into consideration while approving a home loan. As lending institutions tend to limit home loan tenor as per the applicant’s age of superannuation, individuals in the lower age bracket are eligible for an increased loan tenor. On the other hand, applicants belonging to the higher age bracket find it difficult to avail a home loan for a long tenor.
- Salary: On the basis of which city you live in and your employment status, lending institutions often set a minimum income. Hence, you must check the home loan eligibility on salary to get a clear idea beforehand.
- Credit score: While approving home loans, lenders usually favour a credit score of 750+. The higher the credit score, the better your chance of getting a home loan approved at better terms.
- Employment status: Your employment status and stability are taken into consideration while approving a home loan.
- Other financial obligations: While checking housing loan eligibility, you must consider your other financial obligations. To ensure you avail a home loan without any hassle, you must maintain a healthy repayment pattern. Unpaid dues, default in EMI payments can affect your eligibility.
Equipped with the knowledge of these factors and the easy procedure to check how much ‘home loan on my salary’ you can get, you can easily avail credits at favourable terms.