Calculate Home Loan Eligibility

Before applying for a home loan, make sure to check and fulfil the eligibility requirements to improve your chances of hassle-free loan processing and approval. Bajaj Housing Finance Limited lays down simple eligibility requirements that are minimal and easy to meet. The top eligibility factors that determine your loan qualification include your age, income, existing obligations, employment type, city of residence, etc.

Utilise a home loan eligibility calculator to assess the maximum loan amount you can avail based on the parameters fulfilled. Checking your loan eligibility with the financial tool helps you reach a suitable loan amount as per your income and repayment capacity, thereby enhancing your chances of loan approval.

Home Loan Eligibility Criteria

Fulfill the following home loan eligibility requirements before you apply for the advance with Bajaj Housing Finance Limited. Also, utilise an eligibility calculator to check home loan eligibility and apply for a suitable loan amount accordingly.

Factors that Affect Home Loan Eligibility

An individual’s housing loan eligibility is determined on the basis of various factors. The total loan-to-value is decided based on the following factors.

1. Applicant’s age

The age of an applicant affects the total home loan eligibility amount. As long-term financial commitments, home loans are favourable for younger individuals applying for the same early in their career due to extended working years and a higher earning capacity.

Applicants early in their career can also select a suitable tenure extending up to 20 years as per the loan amount required and their repayment capacity. Use a home loan EMI calculator when applying for the housing finance to estimate your fixed monthly outgo and apply suitably.

2. Type of employment

Employment type is a critical determinant of the maximum loan amount an applicant can avail. Bajaj Housing Finance Limited offers Home Loans of up to Rs.3.5 crore to salaried employees and up to Rs.5 crore for self-employed individuals.

3. Income

Monthly income of an individual determines the affordability of EMIs he/she can service towards loan repayment every month without any financial stress. Check your home loan eligibility criteria  based on salary or business income before proceeding to apply.

4. Credit report and score

Credit score represents an applicant’s past credit behaviours as well as reliability for timely repayment, and impacts your loan approval chances. Maintain a healthy credit score of 750 and above to improve your chances of easy loan approval.

5. Existing loan commitments

Any existing loan commitment is deducted from the total monthly income to determine your repayment capacity during application evaluation. Repay your existing advances before applying for a home loan to increase repayment capacity.

6. Lender’s LTV

Loan to Value ratio or LTV is a measure of the maximum loan amount a lender can sanction as a percentage of the mortgaged property’s current market value. Bajaj Housing Finance Limited provides a high LTV of up to 85% on Home Loans to make financing convenient for homebuyers.

The home loan interest rate levied is also based on these factors that indicate the risk involved with lending. High home loan amount eligibility indicates reduced risks with competitive rates and vice versa.

Tips to Enhance Home Loan Eligibility

Applicants must check their eligibility for a home loan before applying and take necessary measures to improve it for easy loan approval. Use a housing loan eligibility calculator to determine the maximum loan amount you can avail before proceeding to apply. The following tips can help improve your qualification for the required loan amount.

a. Apply with a co-applicant

A home loan  with a co-borrower represents combined eligibility of both applicants. Make sure to choose a co-applicant with a high income, reliable credit score, and a clean repayment history for improved eligibility.

Applicants must also utilise a joint home loan eligibility calculator to assess the maximum loan amount available when applying with a co-borrower. Co-borrowing a home loan also comes with individual tax benefits for both borrowers.

b. Select an extended loan tenure

Opt for an extended tenure for home loan repayment to improve your eligibility. A longer tenure divides the total repayment liability into more number of months, and brings down the EMIs.

Individuals with limited income can improve their repayment affordability and overall loan eligibility by selecting a longer tenure and smaller EMIs. Use a home loan EMI calculator to select a suitable repayment tenure as per your income.

c. Repay existing debts

Repayment of existing loans enhances your chances of home loan approval. Paying off the debts reduces the total liability and spares your monthly income, increasing your capacity to repay. Making timely credit card payments and repaying any outstanding liability on vehicle or personal loans improves home loan eligibility.

Check your loan eligibility with an eligibility calculator to confirm increased repayment capacity.

d. Document all sources of income

Income proof is essential to adhere to all the documents required for a home loan. When submitting income documents, include all sources of income such as salary (if salaried applicant), business profits (if self-employed), monthly rental earnings, income from investments, etc., to improve your home loan eligibility amount.

e. Take necessary measures to improve credit score

Taking necessary measures to improve the credit score enhances your overall credit profile, and improved home loan eligibility. Measures like making timely repayment of debts, limiting credit utilisation ratio to 30%-40%, and keeping a FOIR of not more than 50% help improve your credit score.

f. Include any variable annual pay in your income documents

When providing the home loan documents, include any variable pay received annually as well, such as yearly bonuses, incentives, etc. to increase your overall loan eligibility. Add the amount when entering income value in a housing loan eligibility calculator to determine your actual eligibility for the home loan amount.

How to Use Bajaj Housing Finance Limited’s Eligibility Calculator?

Home loan eligibility calculator provided by Bajaj Housing Finance Limited allows users to assess the maximum loan amount they can avail based on various eligibility factors. Follow the step-by-step guide to check your eligibility for the housing finance with this loan amount eligibility calculator.

Step 1 – Enter your date of birth for your age determination. The values should be entered in Date-Month-Year format.

Step 2 – Select your city of residence from the dropdown menu. The city selected helps the housing loan eligibility calculator determine your loan amount suitability as per your income and the market price of the house to be purchased.

Step 3 – Enter your monthly salary or income (including any additional sources of earning) in Rupees.

Step 4 – Provide your existing financial obligations, like EMIs payable, fixed expenses, credit card bills, etc.

Once you enter the required values, the calculator instantly reflects your maximum home loan amount eligibility. The home loan amount eligibility calculator provides an accurate and quick estimate of the loan amount you can avail conveniently as per your current eligibility. Proceed to apply for a home  loan  accordingly for improved chances of approval. Individuals with low eligibility can opt for a joint home loan and apply accordingly.

How is Home Loan Eligibility Calculated?

Eligibility for home loan is calculated based on multiple factors that a lender uses to determine a borrower’s capability to repay and the risk involved in lending. The basic factors that determine your home loan eligibility include your income and repayment affordability.

Other essential factors include your age, financial and employment profile, place or city of residence, credit profile including the credit or CIBIL score and report, existing repayment liabilities, and the likes. These factors also contribute to interest rate determination, whereby low-risk profiles attract attractive interest rates and vice versa.

Provide all necessary documents required for a housing loan to confirm your eligibility when applying. Here is a break-up of the effects of different eligibility factors on the home loan amount and interest levied.

• Income and employment profile: A high monthly/annual income indicates an increased capacity to repay the home loan, and helps avail a loan amount as per your requirement. A high income also indicates a reduced risk of default, allowing lenders to levy attractive rates.
  The employment profile of a borrower impacts his/her eligibility similarly. A salaried employee working with a well-recognized company stands a better chance of securing a high-value loan at competitive rates. Self-employed individuals with established business profiles can also negotiate for the required loan amount with an improved home loan for self-employed eligibility.
• Age: Borrowers stand an improved chance of availing a high-value home loan at competitive rates early on in their career. Individuals nearing their retirement age can avail a high-value home loan too, albeit at higher rates of interest and reduced repayment tenure.
• Credit profile: A borrower’s credit profile comprises multiple factors, including the repayment history, healthy credit habits like timely debt repayment, ideal credit utilisation and debt-to-income ratio, credit mix availed, etc.  The credit score and report numerically sums up these parameters, with a high score indicating a reliable credit report and a creditworthy profile.

What is Home Loan Balance Transfer Eligibility Criteria?

Applicants must meet the following eligibility criteria to avail a balance transfer facility with Bajaj Housing Finance Limited. Make sure to fulfil all requirements and utilise a home loan balance transfer calculator  to assess eligibility before applying, and complete the transfer of your outstanding home loan amount to Bajaj Housing Finance Limited at reduced rates and other favourable terms.

• Employment type – Applicants need to be either salaried or self-employed to avail the balance transfer facility.
• Age – A salaried applicant must age between 23 and 62 years. For self-employed applicants, the age limit ranges between 25 and 70 years.
• Employment stability – Salaried individuals must apply with at least 3 years of work experience. Self-employed applicants need to fulfil a minimum business vintage of 5 years to apply

Fulfil all the criteria and submit minimum documents required for home loan balance transfer to apply with Bajaj Housing Finance Limited.

How Much Home Loan Can One Get Based on Salary?

The home loan eligibility of applicants differs with their age and income. For salaried individuals, their net monthly income determines their maximum loan eligibility. Below is given estimated housing loan eligibility for salaried individuals based in Bhopal as per the monthly income variations.