Home Loan Eligibility Calculator

A Home Loan, in this day and age, is the need of the hour. Because of the rising property prices in the country, owning a home is next to impossible without any external financial help. 

Now that the idea of taking up a Home Loan is decided, the next step to do is determine whether you are eligible for a Home Loan, and what is the maximum amount you can obtain from the Bank. 

That’s when Fincity’s Home Loan Eligibility Calculator can come to the rescue; it can calculate, and provide an individual, exactly how much Loan Amount they are eligible for and what the monthly payment structure might look like just by taking a few basic details as input. 

What does Home Loan Eligibility mean? 

Home loan eligibility is basically a set of conditions based on which a financial institution analyzes and determines the credit-worthiness of a customer to avail and then repay a particular amount of loan. The eligibility of a Home loan depends on a variety of factors such as age, financial position, credit history, credit score, other financial obligations etc. 

Calculation of Home Loan Eligibility 

Primarily, the eligibility for a Home Loan is derived on 2 basic criteria – the applicant’s monthly income and their repayment capacity. But there are a few other factors that come in play in deciding whether the applicant is eligible for a Home Loan or not. 

Here are few conditions that a borrower needs to meet to get an HDFC Home Loan: 

  • Age: HDFC Bank requires that the borrower meet the minimum and maximum age criteria set by the bank. To get a Home Loan, the minimum age of an applicant must be 21 years and the maximum age at the time of loan maturity must be 65 years. 
  • Income: HDFC Bank offers Home Loans to both salaried and self-employed individuals (business owner or a professional). It is however important that the borrower have a regular and stable source of income above the minimum income standards set by the bank. 
  • Credit Score: Your score is evaluated by the bank when you apply for a Home Loan. Your credit score indicates your credit history and past credit behavior. Ensure that your score is good, i.e., above 700, to increase your chances of getting an HDFC Home Loan easily. 
  • Resident Type: The applicant must be a citizen of India to qualify for a Home Loan. 

 HDFC Home Loan Eligibility Criteria 

  • Present Age and Working Years Remaining: The age of the applicant plays a major role in determining home loan eligibility. 
  • Age Limit for: 
    • Salaried Individuals: 21 to 65 years. 
    • Self-Employed Individuals: 21 to 65 years. 
  • Minimum Salary: ₹10,000 p.m. 
  • Minimum business income: ₹2 lac p.a. 
  • Maximum Loan Term: 30 years. 
  • Financial Position: The present and the future income of the applicant(s) has a significant impact on determining the loan amount. 
  • Past and Present Credit History and Credit Score: A clean repayment record is considered positive. 
  • Other Financial Obligations: Existing liabilities such as a car loan, credit card debt, etc. 

Improve Home Loan Eligibility 

The home loan eligibility of an individual can be enhanced by 

  • Adding a co-applicant who is an earning family member. 
  • Opting for a structured repayment plan. 
  • Ensuring a flow of a steady income, regular and periodic savings and investments. 
  • Providing details of an individual’s regular extra income sources. 
  • Keeping a check and recording your variable salary components. 
  • Taking the necessary steps to fix errors (if any) in your credit score. 
  • Regularly repaying current loans and short terms debts. 

Factors Impacting Home Loan Eligibility 

Your eligibility for a Home Loan is influenced by a certain number of factors decided by the lender. Here are the key ones: 

  • Credit Score: This is an important factor that determines your eligibility for a Home Loan. A good credit score reflects disciplined credit behavior in the past while a bad credit score reflects that you have not been responsible with past debts. Make it a point to pay your bills and EMIs regularly to have a higher chance of Home loan approval. 700 and above is considered a good score. 
  • Income: This indicates your repayment capacity and is taken into account by the lender. A higher income is likely to get you a lower interest rate and even a higher loan amount.  
  • Debt-to-Income: A lender looks into your Debt-to-Income ratio, i.e., the ratio of your cumulative debt to your total income. A lower debt translates to a higher repayment capacity and is preferred by the bank. To be eligible for a Home Loan, the DTI ratio of a borrower should not cross 50%. 
  • Age: A higher number of service years remaining means more time to earn and repay the loan. Therefore, lenders prefer a younger borrower over someone who is close to retiring. Even if an older borrower gets a Home Loan, they will be eligible for a shorter tenure. 
  • Business or Job Stability: Applicants having a stable job with a regular source of income are considered good candidates for a Home Loan. Continuous work experience with a regular income indicates that the borrower can make timely EMI payments. 
  • Employer and Profession Type: Lenders prefer to offer Home Loans to applicants working with a reputed organization over borrowers employed with a smaller company. Also, salaried borrowers are likely to get a Home Loan more easily than self-employed individuals.  This is due to their stable monthly income. 
  • Property Characteristics: When you apply for a Home Loan, they will assess certain features of the property such as its age, title and location. If it’s outside the bank’s listed locations, is too old or is under dispute, the bank is likely to reject your Home Loan application. 

How to Use the Home Loan Eligibility Calculator by Fincity? 

You can calculate your home loan eligibility almost instantly using the Home Loan Eligibility Calculator. It is precise and easy to use for anyone. This calculator for Home Loan Eligibility might require just a few key home loan details from the user to display results. 

Here’s an easy guide on how to use the home loan elibility calculator: 

Step 1: Input your gross monthly income. 

Step 2: Input the applicable interest rate for the home loan. 

Step 3: Input the tenure over which you will be able to repay your home loan. 

 As soon as you complete the above steps, your home loan eligibility will be displayed along with other details such as total amount you can avail and also the monthly EMI payable. 

Documents Required for a Home Loan 

To be eligible for an HDFC Home Loan, your application needs to be supported by the right documents. Co-ordinate with the lender to make sure you submit all the necessary documents. Below is a basic list of Home Loan documents required by the bank. 

  1. KYC Documents: ID & Address Proof (Any One Required) 
    • Aadhaar Card 
    • PAN Card (Mandatory, if income is considered for loan eligibility calculation) 
    • Valid Passport 
    • Voter ID Card 
    • Driving License 
    • Utility Bill: Electricity, Telephone, Postpaid mobile, Water Bill, etc. 
    • Ration Card 
    • Letter from your current employer 
    • Bank statement /a copy of passbook reflecting your address 
    • Valid Rent Agreement 
    • Sale Deed 
  1. Income Documents 
  • For Salaried Individuals 
    • Salary slips for the last 2 months or salary certificate (*If variable components like overtime and incentives are reflected, then salary slips for the past 6 months are required.) 
    • Cash Salary – Income details on Company Letterhead 
    • Copy of bank statements for the past 3 months (salary account) 
  • For Self Employed Professionals 
    • Certificate of qualification for professionals: CA, doctors or architects 
    • Copy of last two years’ income tax returns, along with computation of income 
    • Copy of last two years’ P/L account with all schedules and audited balance sheet, wherever applicable 
    • VAT or Service Tax returns or TDS Certificate 
    • Bank statement for the last 6 months (Savings account, current account and O/D account) 
  • For Self Employed Non-Professionals 
    • Copy of your last two years’ income tax returns, along with computation of income 
    • Copy of last two years’ P/L account with all schedules and audited balance sheet, wherever applicable 
    • VAT or Service Tax returns or TDS Certificate 
    • Bank statement for the last 6 months (Savings account, current account or an O/D account) 
  1. Property Documents 
    1. Allotment letter from builder 
    2. Agreement of Sale 
    3. Registration and stamp duty receipt 
    4. Index- ii 
    5. No Objection Certificate (NOC) from the builder 
    6. Own Contribution Receipt (OCR) 
    7. All builder linked documents (Applicable for cases that are not approved or previously not funded by HDFC) 
    8. Development Agreement 
    9. Tripartite Agreement 
    10. Partnership Deed 
    11. Sale Deed 
    12. Title Search Report 
    13. NA order 

Home Loan – Definition 

A home loan is where you can borrow money needed by you to buy a home from banks like HDFC Bank. Usually, the loaned amount will be an approximate 80% – 90% of the value of the home. They will charge you an interest percent for the loan amount which the you will have to pay along with principal borrowed in a monthly EMI form. 

The money borrowed for home loans is high, therefore the EMI each month will also be high. To help customers get an estimate of how much EMI they will pay for any interest rate, tenure and loan amount HDFC Bank provides home loan EMI calculator. 

The property is mortgaged to the lender as a security till the loan is fully repaid. 

EMI Calculation Formula 

Generally, the EMI for a Home Loan is calculated using the given formula: 

E = P * r * (1+r) ^ n / ([(1 + r) ^ n] – 1) 

In the formula mentioned above, 

E = Equated Installment 

This is the total obligations required to pay per month 

P = Amount of Loan 

This can be anywhere between Rs.15,00,000 to Rs.5,00,00,000 

r = Rate of Interest  

This means the interest rate per month.  

n = tenure in months  

Generally, the tenure for a home loan ranges from 15 years to 30 years. 

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I hereby declare that I have read the consent. and I appoint and allow FINCITY to access my credit information from Credit Information Companies in order to understand my credit worthiness and thereinafter provide personalised values which would help them generate the Credit Information Report, Credit Score and Credit Analysis. I/We hereby authorize FINCITY & its affiliates including banking partners to call or SMS and/or WhatsApp with reference to my application or in relation to any of FINCITY products, notwithstanding anything to the contrary that may be contained anywhere, including any registration for DNC/ NDNC.

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