Home Loan Eligibility Calculator
Lenders normally grant home loan up to maximum of 80% (90% for loan amount below Rs 20 lakhs) of the agreement value of the property as a home loan in India. The overall home loan eligibility is a product of several factors like borrowers occupation (whether salaried / self-employed), his disposable income, number of dependents, the interest rate charged by the bank and the tenure of the loan.
The rate of interest on home loan not only influences the amount of EMI, but also loan amount eligibility. A higher interest rate can bring down the loan amount eligibility and vice versa, because lenders consider a certain percentage of individual's income as available for the payment of EMI's on all loans. This percentage of income which a lender considers as available for servicing can vary from person to person depending on his level of earnings and current and future liabilities.
Making earning spouse, parents or children as co-applicant and co-borrowers to the housing loan can enhance your home loan eligibility. The borrower can also enhance his home loan eligibility by increasing the tenure of the housing loan.
An illustration below can help one to understand how a change in tenure can effectively increase the home loan eligibility.
Mr. Sharma earns a monthly salary of Rs. 1,00,000/-. He wants to take a home loan for purchasing a property and has no other outstanding loan on his name at present. Assuming that he has satisfied all other criteria and the bank has considered 40% of his net income as available for payment of EMI, hence he will have Rs. 40,000 p.m. for payment of home loan EMI.
If current rate of interest of the bank is 10.5% p.a. for 15 years tenure, Mr. Sharma will be eligible for approx. Rs. 36.19 lakhs at an EMI of Rs. 1105 per lakh.
Now, if Mr. Sharma wants to increase his home loan eligibility, he has an option to opt for a longer tenure say 20 years. So at same rate of interest of 10.5% p.a. he will be eligible for approx. Rs. 40.06 lakhs at an EMI of Rs. 998 per lakh.
To get a fair idea about home loan eligibility amount, the borrower can use our simple home loan eligibility calculator with very user-friendly guiding tools. As the final home loan amount is dependent on various factors, our home loan eligibility calculator will display a range for loan eligibility amount.
Note: All calculators and comparators are made based on certain assumptions which may not be true in your case. You should consult your personal financial advisor before taking any decision. Apnaloan disclaims any responsibility for any decision taken based on these calculators and comparators.