The simple Home Loan eligibility calculator can be used by those who have a job and are eligible for a loan to find out how much money is available to them. Utilising a Home Loan eligibility calculator is the most reliable way to find out if you are eligible for a mortgage. In addition to your monthly salary, these calculators take into consideration a variety of other factors.
For instance, the housing loan eligibility calculator would require you to input your monthly salary of Rs. 40,000. You would also need to enter the interest rate (7.55%), the duration (10 years), and the current EMI (0%). If you make Rs. 40,000 per month in income, you would be able to make repayments with Rs. 20,000. The calculator predicts that you might borrow about Rs. 15 lakh for a property based on the parameters given. You can change the aforementioned factors to better suit your needs and circumstances to get a much more accurate estimate of how much you could borrow for a property.
How much home loan can one get on a Rs. 40,000 salary?
The amount of a home loan that a lender will approve for various salary ranges, assuming no existing debts or monthly obligations, is listed below.
| Net Monthly Salary | Home Loan Amount |
|---|---|
| Rs. 40,000 | Rs. 20,67,033 |
| Rs. 39,000 | Rs. 20,15,357 |
| Rs. 38,000 | Rs. 19,63,681 |
| Rs. 37,000 | Rs. 19,12,005 |
| Rs. 36,000 | Rs. 18,60,329 |
*Based on other variables, the exact sums may change.
In order to improve your Home Loan eligibility for a Rs. 40,000 salary, you can utilise a variety of tactics as a borrower, including paying off any existing debt you might have. This significantly raises your credit score and helps to influence the lender that you won't default on your mortgage.
Essential documents required
The kind of documentation required for the house loan application will depend on the person's work history. However, the list of some of the most common documents is as follows:
For Salaried People
- Proof of address
- Evidence of income
- KYC documents
- Most recent pay statements
- For the last six months, see the financial statement.
For Self-Employed People
- Statement of Profits and Losses
- documents for KYC
- sheet of balances
- For the last six months, see the financial statement.
- given a GST certificate
Steps to Apply for a Home Loan
If you've decided to take out a home loan after calculating the loan amount based on your income. To apply online, follow the steps below.
Step 1: Navigate to the application form on the website.
Step 2: Enter your full name, mobile number, employment type, income details, PIN code, and loan amount.
Step 3: Complete the application by entering the requested OTP.
Our representative will get in touch with you to walk you through the next steps within 24 hours* of receiving your housing loan application.
Factors that affect a Borrower's Eligibility
The financial institution determines the borrower's eligibility after considering these important factors.
1. Willingness of the borrower to repay - The borrower's credit score is used as a proxy for their propensity to make payments on time. The credit score considers both the borrower's recent and previous financial obligations. Better credit scores demonstrate responsible debt management in the past, which appeals to potential lenders.
2. Ability of the borrower to repay - The terms "in-hand pay," "net salary," and "gross salary" are frequently used to describe earnings. Knowing the distinction is essential since banks frequently look at a borrower's take-home pay when determining whether they qualify for a mortgage. The most typical elements of a compensation structure are a basic salary, a medical allowance, a leave travel allowance, and a housing allowance. However, each organisation has its unique salary structure.
3. Credit rating - When assessing your eligibility, a critical factor that will be considered is your prior history of loan repayment. Even with a steady salary and other favourable circumstances, a poor credit score may prevent you from qualifying for a housing loan. For financial institutions to show interest, the credit score must be at least 650.
4. Existing debt - Banks consider the borrower's history with other forms of credit, such as ongoing credit such as credit cards and instalment loans such as vehicle loans, while determining whether or not to offer a Home Loan. Thus, the lender is assured that the borrower won't get overloaded and will be able to make timely EMI payments.
5. The tenor - The length of the loan facility you choose to have, commonly known as tenor, affects your eligibility as well. If you select a longer loan term, your monthly payments will be cheaper, which will then increase your ability to borrow more money.
