Checking loan eligibility before making the application

You can get a loan only as per your eligibility for the same. Checking the eligibility helps in making the right decisions about taking the loan.

If you ask a person living in rental accommodation what their biggest dream is, chances are high that they will reply, ‘Buying my own house’. This is a dream also for those about to get married and wishing to move out of their parents’ home. However, the dream remains unfulfilled for many people who struggle to cobble together the funds to buy a home.

Real estate prices are currently at their zenith. At the same time, demonetisation has resulted in several job cuts and individuals pulling out of expensive purchases. Hence, the industry is extremely sluggish at the moment. Most potential buyers are unable to raise the funds even to make a down payment on their dream house – but this situation need not be so dire. In fact, now is the best time to buy a house.

Your dream to buy a house can easily be fulfilled by taking a home loan. However, just like each person’s requirements are different, so are the stipulations of each loan product. The primary stipulation one must fulfil is that of the home loan eligibility. 

What does loan eligibility mean?

Every person who makes a steady income, whether from a job or business, is eligible for a loan. However, one person may be eligible for a higher loan than another. 

The loan amount you get is calculated basis your gross monthly income, whether you pay any other loans, the tenure you seek and rate of interest being offered by the bank. The online loan eligibility calculator computes these figures and arrives at the closest approximation to the loan amount you can expect to get, as shown below:

Using the loan eligibility calculator

Using the loan eligibility calculator takes away the mystery from eligibility calculations. It computes the figures in real time to give the applicant the expected loan amount. Knowing the loan amount beforehand helps you know how much money you need to raise from your own reserves, and what your house budget range is. This helps you shortlist the properties that fall within this eligibility zone instead of looking up more expensive properties.

The best loan calculators (as shown in the illustration above) also show the applicant the potential year-by-year repayment they may make once they take the loan from the bank.

Hence, the loan calculator takes away the guesswork from home loan calculations.