Knowing that you have taken one of the best home loans in India is a recipe for satisfaction. Not only will the amount enable you to meet your needs, but the repayment process will be stress-free, thanks to the low interest and flexible repayment tenor.
Of course, a great home loan deal does not only feature a high amount but also involves a convenient repayment tenor, tax benefits, and other perks. You can take a home loan to fulfil desires, such as the purchase, construction, or renovation of a home. You can also utilize the amount to invest in the real estate market.
However, your plans with the loan amount can be squashed if you do not meet the eligibility criteria. Lenders, like banks and housing finance companies (HFCs), request that you satisfy their respective requirements before they consider your application for a home loan.
This article will show you five easy ways to calculate eligibility for a home loan.
Meaning of Eligibility Criteria for Home Loan
Eligibility criteria refer to a set of requirements that you must satisfy to qualify for a home loan In India, lenders request different things, but some criteria are distinct and we will highlight them below.
The general age criteria for a home loan in India is 18 to 70 years. Meanwhile, note that lenders have specific age requirements for salary earners, self-employed individuals, and professionals.
This is a valuable criterion as the duo of credit score and credit record demonstrate your creditworthiness. This means that lenders, through your credit score, can tell if you are a high-risk borrower or not. To qualify for a home loan, you must never be considered a high-risk borrower.
A credit score of up to 725 and a record of no existing debts increase your chances of getting approved.
To be offered the best home loan deal in India, you need a stable income. Employment guarantees this. Lenders require that salary earners must possess up to three years of work experience while self-employed individuals must own a business for at least five years.
Five Easy Ways to Calculate Your Eligibility for a Home Loan
Now that you know the criteria lenders consider before determining your eligibility for a home loan, below are five easy ways of knowing your eligibility.
Visit Your Preferred Lender
We recommend that you visit your nearest bank branch or the branch of your chosen lender to have a professional discuss the implications of a home loan and your chances of getting it. A professional will address any concerns you have regarding the matter.
Contact Your Lender’s Customer Service
You don’t have to be present in the lender’s office to perform actions like wanting to know your eligibility for a home loan. Simply place a call to your lender’s customer service unit — they will consider your age, credit score, and other factors before offering you advice.
Send an Electronic Mail
If the first two options aren’t feasible, then why not send them an email? After sending an email, all you need to do is await their reply to your inquiry.
Use an Online Eligibility Calculator
Technology has simplified activities that would have otherwise been arduous to perform. Using an online calculator to determine your eligibility for a home loan not only quickens the process but also helps you to settle for one which is less burdensome to repay.
Simply provide the necessary details and expect accurate results promptly. Lenders have this tool available on their website for you to use anytime.
Use an Online EMI Calculator
You can use the EMI calculator, an online financial planning tool, to determine the EMIs on your desired home loan amount. By doing so, you will know whether or not you can afford to take a home loan at the moment.
If a lender must approve your home loan application, you must have satisfied all their requirements. Using the online calculator for home loan eligibility doesn’t just allow you to just access accurate results in real-time; it also gives you a clear view of whether or not you qualify for a home loan in India.
Before applying to a lender, we ask that you consider the interest charged for taking a loan from them. You should also maintain a healthy credit score to have an added advantage.