Importance of a Home Loan Eligibility Calculator

In today’s world, with the ever-increasing cost of real estate, it has become a dream to own a home of your own. But, with the help of easy credit from the banks and other NBFCs, it has become a reality for many. The government has also brought down the interest rate on home loans to help people have their own homes. Anybody today can apply for a home loan, but can everybody qualify for it? Or is everybody eligible for it? Well, lenders prefer lending to only those who are eligible for the loan as the risk of default decreases in such cases. So, if you are applying for a home loan, using the home loan eligibility calculator you can know whether you are eligible for it or not.

What is a Home Loan Eligibility Calculator?

A borrower’s eligibility for a home loan and the home loan amount is calculated based on several factors, such as their age, monthly income, current debt situation, past repayment behaviour, etc. A home loan eligibility calculator shows borrowers depending on these various factors whether they are eligible for the loan amount they wish to avail of. A home loan eligibility calculator helps borrowers avoid loan application rejection, which negatively impacts a borrower’s credit rating and their chances of getting approval for a loan.

Why Use a Home Loan Eligibility Calculator? 

Here are some very important reasons why you should use a home loan eligibility calculator before taking a home loan.

– The home loan eligibility calculator calculates and tells you the loan amount you are eligible for and cuts down the chances of loan rejection. 

– The home loan eligibility calculator also tells you the home loan amount you can afford. It along with the home loan EMI calculator, helps you know the loan value and EMI amount you can afford. This can ultimately help you plan your monthly budget in such a way that so that you have enough money to cover all your EMIs. 

– Lastly, the calculator is accurate, easy to use and free as well. So, borrowers can use it to their best advantage.

How to use the Home Loan Eligibility Calculator?

Go to the lender’s website and look for the home loan eligibility calculator tool and follow these steps to check your eligibility:

• Search for the home loan eligibility calculator online

• From the options that appear choose the employment type 

• Now enter your monthly income details and click on ‘Continue’ 

• Enter the residence PIN code 

• Next the purpose of your home loan has to be selected

• Enter your mobile number

• Tick the box to authorize contact permissions

• Next enter your name, date of birth, and email ID and click on ‘Continue’

• Finally put the OTP sent to your mobile and press the ‘Submit’ button

Summing Up

Thus, the home loan eligibility calculator helps the borrower know whether he is eligible for the home loan, if not what he should do to enhance his eligibility. So, it is important for borrowers to use this tool before availing of a home loan so that his loan application does not get rejected and they are able to secure the loan easily.