# Do the Exact Calculations Easily with Home Loan Eligibility Calculator

Buying a home is a dream of many, but actually not many are able to fulfill that due to lack of finances. Money plays a pivotal role in fulfilling the wishes, if you don’t have money in hand, a wish will always remain a wish, you would not be able to fulfill that. However, if you have a wish of buying a dream home, and don’t have financial support, nothing to worry as you have an option of a home loan. Yes, that’s right! Availing a loan is undoubtedly one of the best ways to get closer to your dream home as it allows you to fulfill your dream in a hassle-free manner. But, one thing that needs to be mentioned here is the fact that before you avail this sort of loan facility, it is important that you should know the eligibility for the same.

Yes, to avail any sort of home loan you need to meet the eligibility criteria set by the lender. Now, when we say home loan, there are plenty of lenders available in the marketplace, which offer finance for the same, but With different eligibility norms. You need to fit into that criteria in order to become eligible for a loan. There are different eligibility parameters you need to match i.e. age, income, job/business stability, total years of work/business handling experience, previous loan, monthly expenses, relationship with the lender, employer category, etc. Yes, these are the few important parameters that lenders always keep in mind while availing you the loan.

Now, if an individual meets all the parameters set by a lender, it does not mean that he/she will get the required loan amount what he/she is looking for. Deciding the loan amount eligibility of an applicant/borrower is all together a different ball game, which most of the lenders calculate differently. Yes, different lenders calculate the loan eligibility of an applicant differently, based on various points. But, the easiest way to know the same is via home loan eligibility calculator. This smart, effective and time-saving tool allows you to know your exact eligibility of the loan amount in the most hassle-free manner.

Let’s just get more clarity on the same with the help of examples below. We are going to compare two scenarios here to have a better understanding of the same.

Scenario 1: Akash Sharma, a 26-year-old, Software Engineer by profession earns a monthly income of₹50,000. He wants to buy his dream home in New Delhi, hence for the same, he has applied for the same. He has the monthly expenses of ₹20,000, which means he saves more than half of his income i.e. ₹30,000 each month. Now, after looking at his profile one lender is ready to offer him the 90% of loan amount by looking at the perspective that he can easily repay the same amount as he has the savings.

Scenario 2: Avinash Aggarwal, an Assitant Casting Director is also 35-year-old and gets a monthly income of ₹30,000. He is looking to buy a home in the capital itself, thus has applied for a loan. Avinash spends half of his income i.e.₹15,000 to manage the monthly expenses, which means he saves ₹15,000 each month. Now, in his case, one lender has also agreed to offer him the loan, but not the same loan amount what he is looking for. He will get only 60%-70% of the loan amount he wants to avail.

Now, many of you must be wondering why Avinash will get the minimum loan, which is not the case with Akash. Well, the reason behind the same is the fact that there are various factors that worked in the favour of Akash.

- Akash’s income is higher than Avinash.
- He is younger than him, which means Akash can continue the loan for a longer tenure.
- The monthly expenses-Avinash’s monthly expenses are higher than Avinash.
- Savings- Akash’s savings are higher than Avinash, which is also a deciding factor here.

However, if you carefully read these points, these are the same parameters, mentioned above in the article, that help in deciding the eligibility of a borrower. Now, what is the exact amount both the applicants will get? I am sure you are curious to know?

Let’s just use the technique how most of the lenders via home loan eligibility calculator computes the loan amount of the borrowers. For your reference, we are calculating the eligibility for ₹1 Lakh.

**Scenario 1: Akash**

Loan Amount: ₹ 1 Lakh

Tenure: 20 Years

Interest Rate: 8.60% per annum

EMI: ₹ 874

So his calculation would be:

₹1,00,000 x 20,000(savings)/874=₹22.88 Lakh (approx.)

**Scenario 2: Avinash**

Loan Amount: ₹ 1 Lakh

Tenure: 20 Years

Interest Rate: 8.60% per annum

EMI: ₹ 874

So his calculation would be:

₹1,00,000 x 15,000(savings)/874=₹17.16 Lakh (approx.)

So, now you can clearly see, how the calculation of the applicants took place. Akash is eligible to get the higher loan amount here. And, this is how usually the lenders calculate or decide the loan amount eligibility of the applicants.