When you apply for a home loan, the first thing you need to consider is your eligibility criteria for a home loan. But, understanding it for the first-time buyers will be confusing. It is the eligibility for getting approved for a home loan and it varies on factors like your current age, income, retirement age, and so on. The home loan eligibility calculator provided by PNB Housing and other banks makes it easier for you to know whether you are eligible for a home loan.
If you are thinking about how much loan you are eligible for then read this article which is a step-by-step guide to checking home loan eligibility online. Let us also see how to calculate your eligibility, the factors you need to consider and so on.
What Is Home Loan Eligibility?
Home loan eligibility is a set of factors on which a financial corporation analyzes your ability for approval and repayment of a certain loan amount. It depends on your age, monthly income, credit score, credit history, financial obligations, etc. Be stress-free about your loan approval with PNB Housing Home Loan Eligibility Calculator.
How To Calculate Your Home Loan Eligibility?
Your eligibility for a home loan basically depends on your income and capacity to repay the loan. The other factors mentioned below also impact your eligibility criteria for a home loan.
Eligibility Criteria For Home Loan
● Present Age and Remaining Working Years:
- The maximum loan terms are generally limited to 30 years.
- The required age limit for Self-Employed Individuals ranges from 21 to 65 years.
○ Minimum Salary:
₹10,000 per month.
○ Minimum Business Income:
₹2 lakhs per annum.
○ Financial Position:
The present and future income plays a significant role in calculating the loan amount.
○ Past And Present Credit History And Credit Score:
A proper repayment record is a positive note.
○ Other Financial Obligations:
Any present liabilities like a car loan, credit card debt, etc. matter.
Step-by-step Guide For Calculating Home Loan Eligibility
● Step 1: Calculate Your Monthly Income:
Check your income when calculating home loan amount eligibility.
● For Salaried People:
The lenders decide the loan amount based on your net salary.
● For Self-employed Individuals:
Your profit and loss determines your loan amount along with balance sheets and tax returns.
● Step 2: Use A Home Loan Eligibility Calculator:
Money lenders like PNB Housing provide a Home loan eligibility calculator to decide the loan amount you are eligible for depending on your salary, tenure, and other factors. This tool saves you time from manual calculation and gives an approximate amount of loan.
● Step 3: Review Your Credit Score:
Credit score also plays an important role in your eligibility criteria for a home loan. A credit score of 750 and above will ensure greater chances of getting a higher loan amount. But if it is lower, then you need to upgrade it before applying for a loan, because it impacts your interest rate and other things.
● Step 4: Check Loan Eligibility Criteria:
Study thoroughly the specifications provided by a lender before calculating your eligibility for a home loan with the Home loan eligibility calculator. Calculate it using the PNB Housing home loan evaluator.
● Step 5: Calculate Your Debt-to-Income Ratio:
If there are any debts, it may impact the home loan amount. By using a debt-to-income ratio, your banks may predict that your monthly needs can be met along with your home loan EMI.
● Step 6: Choose the Right Loan Tenure:
The loan tenure can impact your eligibility for a home loan. Longer repayment tenures may increase the amount of the loan as it minimizes the EMI burden. But, it may lead to higher interest. That is why, the Home Loan EMI Calculator helps to decide the best tenure depending on your financial situation.
● Step 7: Prepare Documentation:
Before applying for a home loan, make sure to keep all the documents ready. It includes identity proof, address proof, income proof, bank statements, or property-related documents.
Conclusion
With the help of PNB Housing, you can enjoy buying your own home. You can increase your eligibility by adding an early family member as a co-applicant, getting a proper repayment plan, a steady income flow, etc.
