If you are planning to apply for a loan, you need to be aware of a few things like EMI, documentation process, EMI of loan, principal loan availability, rate of interest, loan tenure possibility, etc.
One of the important things that you need to be aware of is loan eligibility criteria, and this is where the eligibility calculator plays a pivotal role.
What Is the Eligibility Calculator and Why Is It Used?
If you want to apply for a home loan or any other type of loan, you must know whether you are eligible to take a loan or not.
Loan eligibility is the benchmark set by the financial lenders to assess your ability to qualify for a loan. The loan eligibility calculator evaluates whether or not you are qualified to take a loan on the basis of certain factors like your income, credit history, age, the company you are working in, and the CIBIL score.
If you are willing to apply for a loan, you need to submit certain personal and financial information, including credit history, financial position, credit score, other financial liabilities, etc. Depending on these factors, the loan eligibility calculator displays the result.
Eligibility calculator is an indicative tool to examine loans and assist the applicant in calculating the amount of loan that users can lend. It helps in finding your answers to the questions like how much loan you can avail, what will be the duration of the loan, and what will be the interest rate applicable on loan.
How is Home Loan Eligibility Calculated?
Everybody has a dream to have their own house one day. Sometimes a shortage of finances may slow down your plans, but turning dreams into reality is possible because of easy access to a loan. You can check home loan eligibility before availing a home loan.
Home loan eligibility is majorly dependent on the income and the individual’s capacity of repayment, but there are some other factors as well that will decide the eligibility for the home loan such as age, credit history, and other financial liabilities, etc.
The Home Loan Eligibility Criteria
Below are the following criteria to apply for a home loan:
- A salaried, business person or with Indian citizenship can apply for a loan
- Current age and remaining working age: Age is one of the major factors in determining home loan eligibility as this determines a person’s ability to earn in the future.
- Finance position: Applicants’ current and future income capacity has an important role in determining the amount of home loan they can avail.
- Business continuity
- Credit score and past and present credit history
- Some other financial commitments such as present liabilities like credit card debt, other ongoing loans, etc.
Related: Mortgage Calculator: The Perfect Tool for Homebuyers
How To Use A Home Loan Calculator?
To calculate the loan eligibility, each financial institution has its own calculator. All you have to do is enter the following information in the software, and within a second you will get the results –
- Enter your date of birth
- Provide your location of residence
- Enter your net monthly salary
- As per your financial plans set up your preferred tenor
- If you have any other source of income, mention it
- Mention about your ongoing loans (if any).
To compute the accurate result, it is necessary to provide the correct information. Recheck all entries to the check home loan eligibility. The eligibility calculator will show the maximum amount you can borrow from lenders.
