Home Loan Eligibility Calculator
Home Loan Rates 2017 585 views
Banks and NBFCs have a certain eligibility criterion based on which they offer the loan. This eligibility is decided by keeping into mind certain factors which are mentioned below. Just like other loans, the interest rate and the loan amount are decided by considering the overall profile of the applicant which varied from one to another. Having said that, home loans or housing loans are majorly offered on the basis of the property. However, read below the details of the factors that affect the eligibility.
Table of Contents
- 1 Home Loan Eligibility Criteria
- 2 Home Loan Eligibility at Top Banks
- 3 SBI Home Loan Eligibility
- 4 Home Loan Eligibility Calculator
Factors Affecting Home Loan Eligibility
- Monthly Income- Monthly income is one of the most important factors in deciding your eligibility for a home loan. If your monthly income is high, and you are meeting the eligibility criteria, there are chances that you will get a higher home loan. Higher income is helpful in getting the higher amount whether you are salaried or self-employed.
- Age- This is also an important factor to decide your home loan eligibility. If you are applying for a home loan at an early age, there are chances that you will get a higher loan amount as compared to those who will apply for a loan in their mid 40 or in their 50s. As the time for repayment of the loan will be shorter, it will also decrease your home loan eligibility. Most of the banks ask for your retirement age before lending you a home loan. The maximum age to avail the loan or loan repayment is 60 years to 65 years. So the early you apply, the more your eligibility will be for a home loan.
- Property Value- If you have chosen a right property in any approved society, colony or area, it will help you to get your desired loan amount approved easily. The bank checks the property’s market value at their level and disburses you the loan amount only when your property is located in an approved area without any legal disputes. If the property is meeting the technical and legal terms and norms of the bank then only your loan amount will be cleared.
- Credit History- A good credit history or record is also important to become eligible for a loan. If you are ranked among the defaulter’s list or your credit score is lower, it will badly impact your home loan eligibility and increase the chances of loan application rejection. So, it’s important to maintain a good credit history in order to become eligible for a home loan.
Employment Status for Salaried- To become eligible for a loan, you must have a minimum work experience as most of the lenders look for the same. Generally, lenders ask for a minimum 3 years work experience for salaried people to avail the home loan.
- Professional/Business Status- As a self-employed professional or a businessman, you must submit your professional details, business status record and bank statements as proof of your financial stability in order to be eligible for a home loan. Once you meet the criteria, your loan eligibility automatically increases, and your loan approval chances will also increase.
- Relationship with Lender- A good understanding with the bank can go a long way in negotiating a good loan amount at lower rates. Through this way, you can easily avail a high loan amount and that too at competitive rate of interest without any hassle.
- Your Employer Category- Working at a well-regarded company not only adds to your reputation, but also your loan eligibility. A Fortune 500 Company on your visiting card helps in enhancing your eligibility among various lenders. If you do not fall into the same eligibility criteria, you may get a home loan at a higher rate of interest.
Home Loan Eligibility Criteria
The eligibility criteria required to apply for a home loan is subject to change from one lender to another. However, the common eligibility criteria that the applicant has to match is given below. Based on the criteria, the applicant gets the home loan interest rate.
|Minimum age to apply for home loan||21 Years||21 Years|
|Maximum age at the time of loan||60 Years||65 Years|
|Net Income Criteria||Minimum income of ₹1,80,000 p.a.||Minimum income of ₹1,80,000 p.a.|
|Current Experience||2 years of current job stability||3 years of current business stability|
|Loan Value Ratio||75-90% of the property value||75-90% of the property value|
Home Loan Eligibility at Top Banks
The customers who are soon planning to apply for a home loan can check the eligibility required at top banks in India.
SBI Home Loan Eligibility
Being one of the biggest public lenders in home loan segment in India, SBI is no doubt one of the renowned names in the market today. When it comes to a home loan, the bank is known for offering the same, once you meet the eligibility criteria. You can go through the table below to know the home loan eligibility of SBI.
|Age||18- 70 Years||18- 70 Years|
|Income||₹1,20,000 (p.a.)||₹2,00,000 (p.a.)|
|Loan Amount Offered||Customized||Customized|
|Tenure||30 Years||30 Years|
|Current Experience||2 Years||3 Years|
HDFC Home Loan Eligibility
HDFC Home Loan is disbursed through HDFC Ltd which is known for catering the needs of all home loan borrowers. The housing finance company gives home loans at one of the lowest interest rates, meeting the eligibility criteria. So, before you avail the home loan from HDFC Ltd, ensure you meet the below eligibility criteria:
|Age||21-60 Years||21-65 Years|
|Income||Minimum income of ₹1,80,000 p.a.||Minimum income of ₹1,80,000 p.a.|
LIC HFL Home Loan Eligibility
Next in line is LIC Housing Finance, sharing the 3rd position in home loan market share. This housing finance company needs no introduction as it has already won the hearts of many by offering them loans without any hassle. But, to avail the same, you have to fit into the below eligibility criteria of LIC.
|Age||18-60 Years||18-60 Years|
|Income||₹1,80,000 p.a.||₹2,00,000 p.a.|
|Loan Amount Offered||Minimum ₹1,00,000||Minimum ₹1,00,000|
|Tenure||30 Years||25 Years|
|Current Experience||2 Years||3 Years|
ICICI Home Loan Eligibility Criteria
ICICI Bank is also one of the leading players in a home loan market, known for offering best home loans to all the borrowers. The bank has also set its eligibility criteria for a home loan, hence to avail the same you need to fit into the criteria mentioned below.
|Age||21 Years-65 Years|
|Employment Type||Salaried and Self-employed|
Axis Bank Home Loan Eligibility
Despite sharing the last rank in home loan market share, Axis Bank can also be a great option to avail home loan in India. The bank offers home loan to you at attractive interest rates, fees and charges, hence allows you to fulfill your dream without any hassle. But, before you avail the same, it is highly crucial for you to meet the below eligibility criteria of Axis Bank.
|Name of Schemes||Eligibility||Loan Amount||Tenure|
|Fast Forward Home Loan||Type: Salaried, Self-employed, Professionals||Above ₹30,00,000||30 years|
|Axis Bank Home Loan||Age: 21-65 Years Employment|
Type: Salaried, Self-employed, Professionals
|Above ₹3,00,000||30 Years|
|Asha Home Loan||Income: ₹8,000-10,000 per month Employment Type: Salaried, Self-employed||Above ₹1,00,000||30 Years|
|Empower Home Loan||Employment Type: Self-employed Professionals, Self-employed Non-Professionals||Above ₹10,00,000||15 Years|
PNB Home Loan Eligibility
PNB offers a complete bouquet of services to the customers meeting their needs is undoubtedly a trustable name when it comes to housing loan sector. With maximum loan amount, flexible tenures, quick process and minimal documentation, PNB home loan is easy to avail. If you also want to avail the same, check the table below to know your eligibility.
|Age||21 Years-70 Years|
|Tenure||Up to 30 years|
Bank of Baroda Home Loan Eligibility
A public sector lender with a network of over 5,000 branches, Bank of Baroda is a name to reckon with. When it comes to home loans, BoB with its best of products is catering the needs of all. By offering a loan at attractive interest rates, processing fees, and easy repayment options, BOB ensures to meet your housing loan requirements at its best. In order to know more about Bank of Baroda Housing Loan eligibility, go through the table below.
|Age||21-60 Years||21-70 Years|
|Job/Professional Status||2-3 Years||2-3 Years|
Home Loan Eligibility Calculator
Just like an EMI calculator is used to calculate the home loan EMI, a loan eligibility calculator is used to calculate the maximum loan amount that the applicant can get on the basis of his/her income. Since the home loan is a secured loan, the interest rate offered is decided based on the repayment capacity of the applicant. To get a better rate and a higher loan amount, your monthly savings should be more than 50% of your monthly income. Presently, the lowest interest rate of 8.35% per annum and the maximum tenure for a home or housing loan is 30 years. Your eligibility for the upper limit of the loan amount will be calculated by multiplying the ₹1 lakh EMI with your monthly saving divided by the per lakh EMI. For instance, if your monthly saving is ₹50,000 and you are looking for a home loan, here is how much you can get:
Amount: ₹1 lakh
Loan Tenure: 30 years
Rate of Interest: 8.35%
Your per lakh EMI will be: ₹758
Maximum loan amount = ₹1 lakh*50,000/758 = ₹65,96,306 (approx.)
Thus, with the help of the eligibility calculator, you get the idea of the maximum fund you are eligible for and then proceed. Apart from calculating your monthly salary with the formula to find of your home loan eligibility, you need to focus on other parameters that generally all banks consider before lending you a home loan.