When you apply for a Housing Loan, the first thing that comes to mind is eligibility. Lenders consider your income, repayment tenure, existing obligations, and other factors. Based on these details, they evaluate and decide whether you are eligible for a Housing Loan. This can be stressful because the lender may reject your application if you do not meet the eligibility criteria.
You should use a calculator to check Home Loan eligibility and avoid rejections, which can negatively affect your credit score.
What is a Housing Loan eligibility calculator?
A Home Loan eligibility calculator helps assess your chances of applying for the Loan. To use it, you need to input basic information like your monthly income, repayment tenure, existing obligations, income details, etc. Once you enter all the required information, the calculator gives an idea of the Loan amount you are eligible for.
How to use this calculator?
The information you need to enter in the calculator to check your eligibility for a Home Loan is common among all online platforms offering this tool. You need to enter your current gross monthly income, suitable repayment tenure, monthly repayment obligations, Loan type, professional status (salaried or self-employed), and income details.
Soon, the calculator estimates the maximum Loan amount you are eligible for, the Loan EMI, and the maximum possible tenure.
Myths surrounding Home Loan eligibility calculators
- The calculator is complicated to use
The Housing Loan eligibility calculator is not complicated. It is a convenient method of determining your eligibility by submitting a few details. You need not visit a lender’s branch with a stack of documents to inquire about your Loan eligibility. Thanks to online mediums, this tool is accessible from anywhere and at any time.
- Manual calculations are better
The Home Loan eligibility calculator lets you skip the heavy mathematical calculations. It calculates your eligibility after considering the same inputs as mentioned. Moreover, manual calculations are time-consuming and error-prone, making it tougher for you to determine your Loan eligibility.
- Cannot determine the Loan amount
It is another myth about Home Loan eligibility calculators. This tool provides the maximum Loan amount you can avail of depending on your income, Loan tenure, repayment conditions, etc. However, the final Loan amount you can avail yourself of depends on your profile.
- No idea about the EMI amount
The Home Loan eligibility calculator lets you try different combinations of interest rates and tenures to ascertain an EMI amount that fits your budget. Knowing the EMI amount lets you plan your finances more effectively by cutting unnecessary expenses and ensuring timely repayment.
Conclusion
Applying for a Housing Loan is a big financial decision. Researching, understanding the eligibility criteria, and considering these facts will equip you with all the information to make informed decisions and get the best deal.
