One of the eligibility criteria that determine how much loan you can avail is your net salary (in-hand salary). Your salary is crucial as it helps in forecasting your repayment capabilities.
Your income will determine the loan amount you are eligible for. Lenders will consider your take-home salary, minus certain common deductions such as gratuity, PF, ESI, etc. The take-home salary will determine the EMI amount you can afford and thus the total loan amount you can borrow.
How to calculate home loan eligibility
For instance, if your take-home salary is Rs. 25,000, you can avail as much as Rs. 18.64 lakh as a loan to purchase a home worth Rs. 40 lakh (provided you have no existing financial obligations.) But if your take home is Rs. 50,000, you can avail a loan amount of Rs. 37.28 Lakh for the same property. Subsequently, if your take-home is Rs. 75,000 you can increase your eligibility up to a loan amount of Rs. 55.93 Lakh.
Net Monthly Income (Rs) | Loan Amount (Rs) |
25,000 | 18.64 lakhs |
50,000 | 37.28 lakhs |
75,000 | 55.93 lakhs |
Home loan eligibility based on age
Age is another determining factor when it comes to loan tenure. The maximum tenure that you can avail of is up to 40 years.
You will be able to avail of a longer repaymenttenure if you are of a lower age. You can also avail of a home loan of higher value provided you have a high income.
Salaried applicants have to be between the ages of23 years to70 years to apply for a home loan. Self-employed applicants have to be within the age bracket of23 years to70 years to avail one.
**Maximum age considered at the time of loan maturity.
How to check home loan eligibility?
Individuals can easily check their home loan eligibility criteria on the official website of their preferred lending institution. Although most key requirements are usually the same, certain eligibility criteria may differ from lender to lender. These eligibility criteria are basically a set of parameters based on which a lender can assess a borrower’s creditworthiness and past repayment behaviour. It depends on several factors like credit history, age, credit score, financial obligations of an individual along with FOIR and financial status.
Another easier and quick way to determine loan eligibility is to use an online home loan eligibility calculator. One can use this calculator to work out a personalised quote that can possibly meet the loan amount requirement on favourable and affordable means.
How is home loan eligibility calculated?
The eligibility calculator functions on a mathematical formula to evaluate the eligible loan amount. This considers factors such as the loan tenure, monthly income after taxes, any current debt or loan repayments, and any additional income.
What is an eligibility calculator for a home loan?
An easier way to check home loan eligibility is by using an online calculator. The Bajaj Finserv Home Loan Eligibility Calculator instantly computes the amount that you are eligible to borrow. It helps in better financial planning and reducing the chances of application rejection. This tool also eradicates the hassle of manual calculation completely.
With Bajaj Finserv, access this online calculator whenever you need from anywhere and use it for free.
How to increase home loan eligibility?
Here are some ways to increase your home loan eligibility and improve the chances of availing a home loan.
- Improve CIBIL Score:Lending institutions tend to provide home loans at attractive interest rates to individuals who possess an ideal CIBIL Score above 750.Many things affect it, such as credit history, age, credit score, debt, fixed obligations compared to income, and the person's financial status..
- Clear existing loans:Lenders also assess loan repayment capacity by gauging an individual’s debt-to-income ratio. Hence, clearing existing loans before applying for a new one can increase home loan eligibility.
- Select a joint home loan: If an individual applies for a home loan with a co-applicant or spouse who is earning, their eligibility for the credit product will increase.
