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Loan Eligibility Calculator
Easy way to Calculate your Eligibility Calculator
You may be able to avail home loan up to
₹ 0
with Fincity for the mentioned period. T&C apply.
With Home Loans so easily accessible and available at interest rates lower than any other type of loan, people are getting more and more comfortable taking one. Especially when you have a platform like Fincity that sanctions your home loan amount in less than 10 minutes, taking a loan gets easier than ever. And in case you’re just getting started on your loan journey, it’s important to first find out the loan amount you’re eligible for. For this, you can use the Fincity Home Loan Eligibility Calculator; fill in some details and the result will be displayed to you instantly. Before you check your loan eligibility, let’s look at some of the basic criteria you should meet in order to take a home loan.
Other Home Loan Calculators
Know more about Home Loans and Balance Transfer
Age Limit
:Between 18 and 70 years
Annual Income
:Differs depending on the employment type
Employment Status
:Salaried or Self-Employed
Residence Type
:Permanent resident or Non-resident Indian (NRI)
Credit Score
:Preferably above 750
Note : Loan eligibility criteria is decided by the lender and approval depends on factors such as the borrower’s income, credit profile, etc. Know all about Factors that affect your Home Loan Eligibility here! Click here
How is your Home Loan Eligibility Calculated?
Let’s take an example – Rajesh applies for a home loan and his monthly salary is Rs.50,000. His Leave Travel Allowance (LTA) and Medical Allowance are not considered while his income is calculated by the lender since they can be reimbursed only in case of travel or medical needs. If his LTA is Rs.7,000 and Medical Allowance is Rs.1,000, his calculated salary will be Rs.50,000 – (Rs.7,000 + Rs.1,000) = Rs.42,000. His loan eligibility is Rs.42,000 x 60 = Rs.25,20,000. It’s important to note that most lenders restrict EMIs to 40-50% of the net income. And finally, Rajesh is eligible for Rs.25,20,000 loan but has to take a Home Loan ensuring that his EMI is not more than 50% of his monthly income (i.e. Rs.25,000).
Ways to Increase your Home Loan Eligibility
We already know that your age, income, financial obligations and credit report are among many other factors that influence your loan eligibility. But how can you turn your situation around and increase your eligibility limit? Here are some ways that can help:
Count Your Variable Pay In
The variable component of your salary is a part of your income and therefore should be added to the fixed component to produce your total income. A higher total income will increase your loan eligibility to a certain extent.
Increase the Loan Tenure
A longer tenure means a longer time to pay off the borrowed loan, and a higher loan eligibility. That said, currently the highest home loan tenure is 30 years.
Clear Off Existing Dues
It’s highly recommended that you clear off all your current credit card and other loan dues before you apply for a Home Loan and get a no-due certificate that indicates that you’re debt-free. Any outstanding debt will be reflected in your credit report.
Take a Joint Home Loan with Your Spouse
When you take a joint home loan with your partner, both people’s salaries are taken into consideration during eligibility assessment. This gives you access to a higher Loan Amount.
Step Up Loan
If you are a self-employed individual and are certain that you will see a jump in income in the near future, this may be a great option for you to take a higher loan amount. In step-up loans, not only is your loan eligibility higher, but your EMI starts low and increases gradually.
Maintain a Good Credit Score and Check Your Credit Report for Errors
If you aren’t aware already, there are a host of benefits that are available to you when you have a good credit score, noteworthy ones being a more competitive interest rate, prepayment options, a higher loan eligibility, etc. Make sure to maintain a good score by repaying debts on time and preferably going debt-free before obtaining a home loan. Also, go through your credit report thoroughly to make sure it is free of any error. If you want to get your hands on your current score, Fincity lets you access your Credit Report for free!