Home Loan Eligibility Calculator

How the Home Loan Eligibility Calculator Works?

So, how does our advanced housing loan eligibility calculator provide you with instant results with precision and speed? It takes your details and compares them with the different criteria required for obtaining a Housing loan of a certain amount in its regularly updated database. Thereafter, you get the closest estimate as per the criteria you match. 

Steps to use PNB Housing Home loan Eligibility Calculator

You can easily check your eligibility with our home loan eligibility calculator. Just follow the below mentioned steps and the calculator will display your eligibility:

1. Enter the net monthly income
2. Enter the loan tenure
3. Enter the interest rate
4. Enter the other existing EMIs

Play around with the sliders to get the desired quote and calculate home loan eligibility. You can also opt for a call back to discuss your eligibility for home loan and customised quote with our representatives, or get an instant e-sanction if you are eligible!  

Home Loan Eligibility Based on the Value of Property

It is common knowledge that no lender agrees to provide the entire property value as the home loan amount. Here, the Loan to Value ratio (LTV ratio) comes into the picture.

So, what exactly is the LTV ratio? In simple terms, it is the ratio of the maximum loan amount you can get to the market value of the property you want to purchase. Thus, the LTV ratio tells you how much of the property’s cost that your lender is ready to finance. The rest of the cost must be borne by the applicant beforehand.

Naturally, the higher the LTV ratio, the more you will be able to avail of a home loan. Your LTV ratio depends upon both your property’s valuation, whether it is residential or commercial, location, and other factors. Here’s a table that reveals what LTV ratio you are eligible for depending upon the property value:

Eligibility as per CIBIL Score – For Amount up to 35 Lakhs

Eligibility as per CIBIL Score – For Amount Above 35 Lakhs

Top 5 Factors Affect Home Loan Eligibility

Home loan eligibility in India and across the globe is judged on your perceived ability to pay back. Effectively, your home loan eligibility is determined by the lender based on:

1. Your Age – This determines what the tenure of the loan will be, which in turn will determine your home loan EMI. The longer the tenure, the lower will be the EMI and vice-versa for a given loan amount and interest rate.
2. The Nature and Size of your Income – Your monthly income would determine how much of an EMI commitment you are capable of taking on. This would determine how much of a surplus you make to repay your loan via EMI after your other financial commitments are met.
3. Your Prior Loan Commitments – Your prior financial commitments have a bearing on your eligibility as the same as deducted as regular monthly outflow from your existing income, post which a portion of EMI set for home loan repayment is calculated.
4. Your Credit Report – Your credit report helps the lender judge your repayment health score on other commitments which becomes an important criterion for approval or rejection of your loan.
5. Regulatory Guidelines – NHB too has laid down restrictions on the maximum loan amount as a percentage of the home cost. This limit varies slightly on the basis of the property cost, with lower cost homes being eligible for a higher limit and vice-versa.

How can you increase your Home Loan Eligibility?

1. Applying Jointly: Include either your earning spouse or a co-applicant as a joint applicant of the loan, your loan eligibility could improve substantially. This is because the joint applicant’s income will also be taken into consideration while determining the loan eligibility. But remember, the factors discussed above would be applicable to the joint home loan applicant too.
2. By Closing Other Loans: If you are paying other EMIs, you may consider closing them immediately by pre-paying, so that you have a larger surplus available to channel towards your home loan EMI. This helps push up your eligibility.

We hope this short bite on eligibility has helped you understand the basics of eligibility. Please make the best use of housing loan eligibility calculator below and be on your way to finding your dream house

FAQs: