Finance and Law

How to Calculate Your Home Loan Eligibility Using Home Loan Calculators?

Are you buying a house with the help of easy home loans but are unsure of your eligibility? Well, knowing your home loan eligibility in advance does help! There are several ways one can enhance their eligibility, such as choosing a longer home loan tenure, choosing a higher down payment if possible, applying with a co-applicant, etc. But how can you know your home loan eligibility beforehand? By using an online tool such as the home loan eligibility calculator!

What Is a Home Loan Eligibility Calculator?


Before we apply for a home loan online, anxiety regarding our eligibility is sure to grip us. Well, here’s where a calculator for home loan eligibility comes into play. It is a free, easy-to-use, online home loan calculator using which you can determine the principal loan amount that you are eligible to borrow. The same is done by taking into account specific vital inputs or factors.

Inputs Needed for Using a Home Loan Eligibility Calculator


You will need to enter the following inputs to use a home loan eligibility calculator.

Input #1 Net monthly income

Since monthly income directly impacts your home loan repayment capacity, it is one of the most critical home loan eligibility inputs. However, it is essential to remember that you need to insert your net monthly income, which is the income you take home after the deduction of taxes, contributions to insurance policies or savings plans, etc.

Input #2 Fixed monthly obligations

Fixed monthly obligations refer to those payments that you need to make every month, such as the money spent on groceries, electricity bills, etc. Fixed monthly commitments do not include statutory deductions such as the Provident Fund (PF), investments such as recurring deposit, etc. However, payments to be made towards other loans that are not home loans come under fixed monthly obligations.

Input #3 Home loan interest rate

The rate at which interest is applicable on your home loan is known as the home loan rate of interest.

When looking for an ideal housing loan lender, compare your options and choose the one offering the most competitive home loan interest rates in India.

Input #4 Home loan tenure

Tenure refers to the pre-determined period within which you are obligated to repay your entire home loan inclusive of the applicable home loan interest. Tenure can be set either in months or years.

How to Use a Home Loan Eligibility Calculator?


Using a home loan eligibility calculator is easy. Adjust each of the four values either using the respective sliders, the ‘+’ or ‘-’buttons, or simply insert the values in the boxes given against each value. And that’s it! The calculator will automatically show your home loan eligibility amount and monthly EMI within seconds.

Before you apply for home loan, there is another useful tool you can use to determine your affordability – the home loan EMI calculator. The EMI calculator for home loan allows you to plan out your EMIs optimally, and in advance.

Avail a home loan online only after doing your research and with the help of proper tools.

Hardik Patel

Hardik Patel is a Digital Marketing Consultant and professional Blogger. He has 12+ years experience in SEO, SMO, SEM, Online reputation management, Affiliated Marketing and Content Marketing.

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