Housing loan eligibility is primarily dependent on some factors like your income and the repayment capacity. There are some other factors also that determines the eligibility of your home loans such as age, current financial position, credit history, credit score, other financial obligations etc. So, before applying for a home loan, applicants must check their eligibility to know whether they will get the loan approved by the lender or not and also what amount of EMI they need to pay per month to pay back the loan. And for this, you use an online home loan eligibility criteria to know your per month Home Loan EMI payment. The EMI is based upon 3 major factors- Loan Amount, Tenure and Interest Rate. This calculator will let you know how much EMI you will have to be pay against your loan. To know your EMI on your home loan, one has to input these three factors into a formula to calculate it.
 The formula to calculate EMI on your home loan is:
EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1] Where, P= Principal loan amount, R= Rate of interest, n= Number of monthly instalments. For example,
Assuming, P= Rs 9 lakh R= 9 percent per annum= 9/12= 0.75 per month, N= 84 months
EMI=((900000*0.75 /100*(1+0.75 /100)^84/((1+0.75 /100)^84-1))) = Rs. 14,480
So, by using the above formulae one may easily calculate the EMI on his home loan which he/she is supposed to pay to the lender as per their loan amount.
Home Loan eligibility is calculated by taking into consideration the below-given factors like:
- Present Age and Remaining Working Years:The age of the applicant plays an important role in determining your eligibility towards home loan. The maximum loan term is capped at 30 years.
- Current Financial Position:The present and the future income of the loan applicant has a significant impact on determining the loan amount and his eligibility.
- Past and Present Credit History and Credit Score:A clean repayment record should be positive to get your loan approved. Most banks give a home loan if you have a credit score of 650 or above.
- Other Financial Obligations: Existing liabilities such as a car loan, credit card debt, etc.
In case you are not eligible for a home loan and want to improve chances of your home loan eligibility, you may do it by keeping certain important points in your mind while applying for a home loan.
1) Adding an earning family member as a co-applicant in your loan.
2) Ensuring a steady income flow, regular savings and investments.
3) Furnish true details of your regular and additional income sources.
4) Keeping a record of your variable salary components.
6) Taking actions to rectify errors in your credit report.
7) Repaying your ongoing loans regularly
The very first step while applying for a home loan is to ascertain the amount of home loan one wants to avail and is eligible for. The home loan eligibility calculator acts as a guide for a loan seeker to make them understand an approximate amount that they may avail of by taking a housing loan. It is always wiser to use online home loan eligibility calculator to assess your Home loan eligibility and to calculate EMIs in advance to know your financial position to pay back your loan within due time.