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Home Loan Eligibility Calculator
What is Home Loan Eligibility?
What is Home Loan Eligibility?
The eligibility for a Home Loan is based on various factors, including but not limited to your monthly income, current age, credit score, fixed monthly financial obligations, credit history, and retirement age. Home Loan eligibility refers to a predefined set of criteria used by financial institutions to evaluate your creditworthiness for obtaining and repaying a specific loan amount. The factors that determine Home Loan eligibility include age, financial position, credit history, credit score, and other financial obligations, among others. Bajaj Housing Finance presents you with a Home Loan Eligibility Calculator that can help you gauge the Home Loan amount you are eligible for, based on your financial status.
How is Home Loan Eligibility Calculated?
Simply speaking, Home Loan Eligibility Calculator is an online tool that is used to calculate your Home Loan eligibility to give you an idea of the loan amount you are eligible for as per your current financial status.
Home Loans provide a secure and easy way to fund the big-ticket purchase of your house. It gives you the opportunity to buy the property you want without readily possessing all the cash required to buy it. The lending agency pays most of the amount on your behalf. But all said and done, the math is not as simple as it may sound. For instance, you can’t just ask for any loan amount and get it. You are required to prove your capacity to repay the loan you are demanding. Accordingly, housing loan eligibility measures are implemented by all lenders to ensure they lend only the amount that the borrower can actually repay.
Fortunately, there is an online loan eligibility calculator available on the website so that you can do your own calculations and set your expectations right. It will help you buy a property that can fit the loan amount you are eligible for. You can use the Home Loan eligibility checker yourself to check the loan value you can receive along with the EMIs you will need to pay.
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Check Your Home Loan Eligibility
Besides being a necessity, buying a home provides a broader sense of security and safety to you and your family. Home Loans have played a crucial role in helping people make the buying decision by paying on their behalf in return of interest based monthly payments. However, you have to qualify certain criteria for Home Loan eligibility. This takes into account your current income, credit history, financial stability, age, and ability to repay in addition to the value of your property and the collateral you are offering. This not only ensures that the eligible candidates get the loan they desire but also one they can realistically pay.
The Home Loan Eligibility Calculator by Bajaj Housing Finance is a safety barrier that helps in making practical decisions and taking calculated risks based on your monthly income, age and monthly obligations.
Using the housing loan eligibility calculator, you can know how much loan you will be approved of regardless of how much you actually require. That way, you can set your expectations about the property you can buy in that budget or the down payment you need to make to match up. The loan eligibility calculator benefits all aspiring Home Loan borrowers, helping them secure favorable loan terms by enhancing their loan eligibility.
Mr Iyer is a 30-year old employee working in a reputable MNC in Chennai with a monthly income of Rs. 1,40,000. Here is a breakdown of his salary and total liabilities for every month:
|Sources of Income||Amount (in Rs.)||Obligations||Amount (in Rs.)|
|Conveyance||10,000||Other fixed obligations||20,000|
|Total Income||1,40,000||Total Obligations||50,000|
Considering all fixed obligations of Mr Iyer, his disposable income available for payment of home loan EMIs is Rs. 90,000 (Rs. 1,40,000 – Rs. 50,000). However, some parts of his total income, including Leave Travel Allowance and Medical Expenses are excluded from the calculation. This is because these are expenses that he can only claim as reimbursement.
Hence, his net disposable income now stands at Rs. 80,000 (Rs. 90,000 – Rs. 10,000). Most financial institutions offering home loans restrict the loan amount to 40% to 50% of an applicant’s net income after considering their fixed obligations. This means that he can get a maximum loan amount of Rs. 40 lakh considering an interest rate of 8.60% p.a. and a 30 year tenor.
How to Use the Bajaj Housing Finance Home Loan Eligibility Calculator?
The Bajaj Housing Finance Home Loan Eligibility Calculator allows users to assess the maximum loan amount they can avail of based on various eligibility factors. Follow the below mentioned step-by-step guide to check your eligibility for housing finance with our loan amount eligibility calculator.
- Enter your date of birth in date-month-year format.
- 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.
- Enter or slide to add your monthly salary or income (including any additional sources of earning) in ‘Rupees’.
- Provide your existing financial obligations, such as EMIs payable, fixed expenses, credit card outstanding, etc.
Once you enter the required values, the calculator instantly reflects your maximum Home Loan amount eligibility. The loan eligibility calculator provides an accurate and quick estimate of the loan amount you can avail of conveniently as per your current eligibility.
Home Loan Eligibility Criteria_WC
Home Loan Eligibility Criteria
If you are looking for a housing loan from Bajaj Housing Finance, you should meet the below eligibility parameters.
|Eligibility Parameters||Requirements to Fulfil|
|Employment Type||Both salaried and self-employed applicants can apply for a Home Loan|
|Age|| For salaried: From 23 to 75 years** |
For self-employed: From 25 to 70 years**
|Residential Status and Citizenship|| Salaried applicants must be an Indian citizen (including NRIs). |
Self-employed applicants must be Indian (resident only).
|Work Experience/Business Vintage|| For salaried: Minimum 3 years of work experience |
For self-employed: A vintage of no less than 5 years in the current business
**The upper age limit is considered as the applicant’s age at the time of loan maturity.
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Factors Affecting Housing Loan Eligibility
The eligibility for a 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, which includes your CIBIL score and bureau report, existing repayment liabilities, etc. These factors also contribute to interest rate determination, whereby low-risk profiles attract lower 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 the interest levied.
- Income and Employment Profile: A high monthly/annual income indicates an increased capacity to repay the Home Loan. A high income also indicates a reduced risk of default. Thus, borrowers with high income can negotiate more attractive rates. Similarly, the employment profile of a borrower also impacts his/her eligibility. A salaried employee working with a 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 the right profile.
- Age: Borrowers stand a better chance of availing of a high-value Home Loan at competitive rates early on in their career. Individuals nearing their retirement age can avail of a Home Loan too, although for a shorter repayment tenor.
- Credit Profile: A borrower’s credit profile depends on multiple factors, including their repayment history, credit habits such as debt repayment, credit utilisation, debt-to-income ratio, and credit mix, among others. The credit score and report numerically sum up these parameters, with a high score indicating a reliable credit report and a creditworthy profile.
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What Home Loan Amount Can You Avail of Based on Your Salary?
Home Loan eligibility differs with the applicant’s age and income. For salaried individuals, their net monthly income determines their maximum loan eligibility. Given below is the estimated housing loan eligibility for salaried individuals based in Bhopal as per their monthly income variations.
|New Monthly Income (Rs.)||Maximum Home Loan Eligibility (Rs.)|
Home Loan Eligibility Based on Your Age
Home Loan Eligibility Based on your Age
|Employment Type ||Age Criteria |
|Salaried Individuals ||23 to 75**|
|Self-Employed Individuals ||25 to 70**|
**Maximum age considered at the time of loan maturity
Tips to Increase Home Loan Eligibility
Applicants should check their eligibility before applying and take the necessary measures to improve their profile for easy loan approval. Use a housing loan eligibility calculator to determine the maximum loan amount you can avail of before proceeding to apply. The below tips can help improve your chances of quick loan approval.
Apply with a Financial Co-applicant
A Home Loan with an earning co-borrower represents the combined eligibility of both applicants. Make sure to choose a co-applicant with a high income, reliable credit score, and clean repayment history for improved eligibility.
We recommend applicants use our free Home Loan Eligibility Calculator online 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.
Select an Extended Loan Tenor
Opt for an extended tenor for Home Loan repayment to improve your eligibility. A longer tenor divides the total repayment liability into a higher 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 tenor and smaller EMIs. Use a Home Loan EMI Calculator to select a suitable repayment tenor as per your income.
Repay Existing Debts
The repayment of existing loans enhances your chances of Home Loan approval. This is because paying off debts reduces your total liability, thereby increasing your capacity to repay. For instance, 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.
Document All Sources of Income
When submitting financial documents, include all sources of income, such as salary (if salaried applicant), business profits (if self-employed), monthly rental earnings, and income from investments, among others, to improve your Home Loan eligibility amount.
Take Necessary Measures to Improve Credit Score
Taking necessary measures to improve your credit score also enhances your overall credit profile, and therefore, Home Loan eligibility. Making timely repayment of debts and limiting credit utilisation will help you improve your credit score.
Include Any Variable Annual Pay in Your Income Documents
When providing Home Loan documents, include any variable pay received annually, such as yearly bonuses, and incentives, to try and 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. Do note that only a part of the variable pay is considered towards your income and, subsequently, eligibility, and the exact percentage varies from lender to lender on a case-to-case basis.
Home Loan Eligibility Calculator FAQs_WC
Home Loan Eligibility Calculator FAQs
A housing loan eligibility calculator can be used for the purpose of establishing your Home Loan eligibility, depending on your salary. Here is how you can use the Bajaj Housing Finance Eligibility Calculator:
- From the drop-down menu, choose your city of residence
- Enter your birth date
- Enter your monthly income
- Enter your existing financial obligations
Based on the information you provided, the Home Loan amount you are eligible for will be displayed on screen.
The minimum salary required for a Home Loan is Rs.30,000, earned monthly. Ensure that you account for all your income sources while declaring your monthly income to optimise your chances of securing a good Home Loan deal.
Younger applicants enjoy an advantage when they apply for the housing loan, as chances of approval are higher, in such cases, – considering their salary earning years and repayment capacity. Older applicants can also apply, but they may be offered steeper rates.
You can use the Bajaj Housing Finance Eligibility Calculator to establish the Home Loan you can receive on a salary of Rs.50,000.
Consider this as an example: An applicant residing in Pune, of an eligible age of 27 with a monthly income of Rs. 50,000 without any existing financial obligations, can receive a Home Loan of Rs.25,83,791 as per the calculator.
The bank or financial institution conducts a background check before issuing a loan to a person to ascertain if the applicant is capable of repaying a loan or not. They also determine the loan amount to be sanctioned if the borrower can repay the loan. The process of determining a borrower's eligibility for a loan is known as determining their creditworthiness.
The following factors can affect your Home Loan eligibility:
Income and Employment Profile: A high monthly/annual income indicates an increased capacity to repay the Home Loan. A high income also indicates a reduced risk of default. Thus, borrowers with a high income can negotiate more attractive rates. Similarly, the employment profile of a borrower also impacts his/her eligibility. A salaried employee working with a 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 the right profile.
Age: Borrowers stand a better chance of availing of a high-value Home Loan at competitive rates early on in their career. Individuals nearing their retirement age can avail of a Home Loan too, although for a shorter repayment tenor.
Credit Profile: A borrower’s credit profile depends on multiple factors, including their repayment history, credit habits such as debt repayment, credit utilisation, debt-to-income ratio, and credit mix, among others. The credit score and report numerically sum up these parameters, with a high score indicating a reliable credit report and a creditworthy profile.
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