Finding a dream house and buying one is a milestone everyone wants to achieve in life. Although it sounds like an exciting endeavour, paying the property’s price lump sum is quite stressful financially. Considering that, home loans help people achieve this long-term goal at the cost of interest rate. However, it’s essential to know how much loan amount one is eligible for so that the borrowers can plan their finances and apply for the right amount. This is when a housing loan eligibility calculator comes to be of great use. An eligibility calculator enables prospective borrowers to calculate their loan amount, helping them to plan the loan application according to their repayment capacity. Let us see how this online tool works and what the benefits of using it are.
What is a Home Loan Eligibility Calculator?A home loan eligibility calculator is an online tool that most lenders have on their websites. Those planning to apply for a home loan can use this tool to calculate the loan amount they are eligible for, depending on their income, repayment tenure, home loan interest rate, financial obligations, down payment, property price, etc. This tool is one of the easiest and fastest ways to determine home loan eligibility. NBFCs consider multiple factors while offering a loan amount to the applicants, including their salary, tenure, DTI ratio, EMIs, etc. With an eligibility calculator, the applicant can quickly enter the required values in the provided fields and check their achievable loan amount without hassle. It helps borrowers make an informed decision and avoid loan rejection, which negatively affects their CIBIL score and credit behaviour.
How Does a Home Loan Eligibility Calculator Works?A home loan eligibility calculator computes the loan amount a person is eligible to borrow instantly. It helps the borrower better plan the finances and reduces the chances of loan rejection. Besides that, the online tool eradicates the time and hassle of manually calculating the loan amount. Potential borrowers may easily use this tool by following these steps:
- Visit the website and find their housing loan eligibility calculator
- Enter details in the fields provided, including monthly salary, repayment tenure, interest rate, existing financial obligations, and the desired property’s price.
- Click the calculate button to get the results.