# Category: Home Loan

# Check Aspire Home Finance Rate of Interest & Apply Online Now!

As the name suggests, Aspire Home Finance company gives you the opportunity to make your wish come true! As the famous saying says, ‘Home is where the heart is’, this housing finance company helps people get their dream home and their heart together. Having said that, this housing finance company also provides a specialized scheme for female borrowers wherein it give affordable home loan scheme. The name of this scheme is MALA – Mahila Awas Loan from Aspire. Isn’t it beautiful that a woman can get a home loan at an affordable price? It is indeed!

Aspire Home Finance Corporation Limited is a Motilal Oswal Group company which aims to provides one of the best home loan deals in the market. Here at Aspire, you get the loan for the ready/under construction, residential property/construction of a residential property of a residential property on own land. In addition to this, the refinance facility is also offered by AHFCL to the customers who have a running loan from another bank.

Have a look at the interest rates offered by Aspire Home Finance as per the different profession:

- Salaried- 12.00% to 15.00% p.a.
- Self Employed- 12.50% to 15.00% p.a.
- Self Employed/Non Professional- 12.50% to 15.00% p.a.

After going through all these attractive benefits, don’t you want to apply for a home loan online at AHFCL? Well, to apply for home loan, a person must meet the eligibility criterion set by AHFCL. So, have a look at the eligibility criteria below:

**Eligibility Criteria-**

Aspire Home Finance gives home loans to the below-listed applicants only:

- Salaried, self-employed and non-professional.
- The minimum loan amount is ₹2 Lakhs and the maximum loan amount is ₹25 lakhs
- The minimum tenure for a home loan is 5 years; maximum tenure is 25 years only for Salaried Customers and 20 years for self-employed customers.
- Loan tenure should not extend the age of retirement or on reaching sixty years of age in case of Salaried and Seventy in case of self-employed customers

Now, other than the eligibility criteria, the list of documents required to get a home loan are as follows:

- Application form duly signed by the applicant along with the photograph
- ID proof & Resident Proof
- Processing fee cheque
- Last 6 months bank statement
- Documentation for salaried applicants:

- Last 3-months salary slips
- Form 16 along with recent salary certificate

- Documentation for self-employed applicants

- Last 2 years Income tax returns
- Last 2 years computation of income

After you have got everything ready, you would look for the application process, right? But, before applying, you should also check the monthly installments in advance so as to be prepared for the smoother repayment.

**Home Loan EMI Calculator-**

Just like any other loan calculator, a home loan calculator or a home loan EMI calculator is the tool that is used to calculate the monthly EMI, the total interest outgo, and the total amount (interest+principal) for your chosen loan amount. This calculator takes into account the loan amount, interest rate and the tenure for your loan. For example, if you have taken the home loan of ₹25 lakhs for 25 years at the annual rate of interest of 12%, the details of your payment are as follows:

- EMI- ₹2,22,122
- Total Interest Outgo-₹1,65,464
- Total Amount (Interest+Principal)- ₹26,65,464

You must be thinking why is it important to know the above details before getting the loan? Well, you must know that there are many benefits of a loan calculator and some of them are as follows:

**Benefits of using Home Loan Calculator or Housing Loan Calculator-**

**Accurate results**– One of the main advantages of using an EMI calculator is that it gives you accurate results, unlike manual calculation where the possibility to make mistakes is more.

**Time-Saving**– Since everyone is getting busier each day, a tool like this makes it convenient for people to save time.

**Flexible Adjustable**-You will be surprised to know that you are free to use the calculator n number of times.

**Easy Comparisons**– With the help of the calculator, you can compare all the home loan offers available in the market and then choose the best one for yourself.

**More than EMI**– The calculator gives the information more than the monthly installments like the total interest outgo and the total amount (principal+interest).

**Suits your Budget**– When you check the installments in advance, you can see if you will be able to manage that particular amount without affecting your other financial liabilities.

**Accounted Processing Fee**– The interest rate offered by the banks do not count processing fees, a loan calculator would let you know the payment excluding the other charges. However, there are some calculators that would count the processing fees also.

Thus, with all the above information in hand, your home loan journey will definitely be smoother.

**Article Source:** http://wishfin.weebly.com/blog/check-aspire-home-finance-rate-of-interest-apply-online-now

# Axis Bank Home Loan Eligibility: Get All the Information About It

The home loan is the product given by the financial institution which helps the people to attain and realise the dream to own a house. A house is one such thing which is the basic requirements of every individual and after a point of time, they think to be an owner of their own home. Sometimes, the financial situation does not permit you to have a home for yourself. You can opt for the home loan in such situation and it will fulfill the financial requirements that you need. The amount you pay rent can be diverted to pay the monthly installment. There are many banks and NBFC that offer the home loan. The Axis bank home loan is one of the best among the banks. The Axis bank home loan eligibility is easy to attain and the bank needs minimal documentation.

The Axis bank being the third largest private sector bank in India has been providing the home loan with compatible rates. The application process is easy and transparent. You can avail the minimum amount of ₹ 3 lakh and the maximum amount depends on your combined income. The home loan is available to you in both the floating as well as fixed rate of interest. The bank does not charge the prepayment charges if you have availed the loan in the fixed rate of interest while for floating it charges only 2% on the outstanding amount.

Also, the home loan has the maximum repayment period of 30 years. It allows you to take the big amount while you pay the small monthly installments. The home loan can be taken to purchase the house or land, construction of house, renovation or enlargement of the house. You can utilize the home loan for any of these purposes.

**The eligibility criteria required by Axis Bank –**

- The applicant of the home loan should be a minimum age of 21 years at the time of filing the loan application and the maximum age of 60 years for the salaried individual while 65 years for self- employed at the time of loan maturity.
- The applicant should be either salaried individual or self- employed.
- The applicant should have the regular source of income.

**Documents Required-**

**For salaried individual:**

- Proof of Identity: Passport/ Voter’s ID/ Driving license/ Pan card
- Proof of Residence: Utility bill/ Passport/ Registered lease agreement with the Utility bill in the name of the landlord.
- Proof of Income: Latest 3 months salary slip/ certificate for fixed income/ latest form 16
- Bank statement: Last 6 months bank statement/ Passbook of the salary account.

**For the self- employed:**

- Proof of Identity: Passport/ Voter’s ID/ Driving license/ Pan card
- Proof of Residence: Utility bill/ Passport/ Registered lease agreement with the Utility bill in the name of the landlord.
- Proof of Income: Last 2 years details for IT returns along with the computation of the income certified by CA.
- Bank statement: Last 6 months bank statement of operative accounts both personal and business.

**The factors that affect the Axis bank eligibility:**

**Age**– The age is one of the factors that determines the eligibility. The age of the applicant should be legal and valid. It is necessary to know if the person has attained the legal age to earn and be responsible for the financial matters or not.

**Nature of profession-** The applicant should be working and have the regular source of income. It is necessary as the home loan is the amount taken from the bank and you will have to return it. The regular income will come only if you are working. You might be a salaried individual, a professional, or self- employed with the stable job and regular income. It is the important factor to determine your eligibility.

**Minimum income and expenses**– The minimum income of the applicant should be enough to support the individual’s expenses and to pay off the EMIs. The amount that is remaining after the total expenses should be more than the EMIs.

**Job stability**-The work experience should be more than 2 years for the salaried individual and should have 3 years for the self- employed. The more you are stable with the job the chances of getting the home loans are more.

**Credit history-** One of the important factors is to have good credit score. The main aim of the credit score is to reflect your past credits and repayment history. Accordingly, the credit bureaus give you the scores. Thus higher the score chances to avail the loan become more.

**Any other loan**– Any other loans taken at the time can lessen your chance.

The Axis bank home loan eligibility is one of the factors that will determine whether your loan application will be accepted or not. Thus it is necessary to take all the factors into account before applying for the home loan. Once you are eligible then within 15 to 20 days after the approval of the application the funds will be disbursed. Axis bank gives you the opportunity to have your own home through its home loan.

# Ways to Reduce Your Home Loan EMI Payments

EMIs are preferably one of the most consequential outflows from your monthly income and it is always a better idea to try and minimize your burden! But let’s find out what exactly is your home loan EMI? EMI stands for Equated Monthly Installment which refers to a predefined amount you have to pay to your bank/lender on a fixed date, every month, for the full tenure of your loan period, until you have completely repaid the loan with the interest due.

Each EMI involves payment towards the principal amount and the interest for the entire duration of the loan. During initial years, a higher proportion of the EMI is generated by the interest payment on the principal amount. As the home loan matures, the interest component tends to decrease and the principal amount creates a higher percentage of the monthly payment.

**Higher down payment :** Once a loan is sanctioned, choose to make a large down payment so that the principal amount is reduced. The calculation of interest payment is done on the principal, so smaller the principal, the lower would be the interest payment and EMIs would be smaller. It might appear difficult to arrive at a large down payment, but it will be useful in the long run and result in considerable savings in EMI payments. This is applicable in the case with long-tenure loans like a home loan which includes EMI payments over decades.

**Choose a longer tenure : **In the case of a long tenure loans, the EMI tends to reduce proportionately as your principal and interest are divided over a maximum number of months. However, your actual monthly outflow will be smaller, you will be paying out your EMIs for a longer period of time along with payment of interest for a longer period. So while your monthly burden tends to be smaller, you might be paying extra throughout the tenure of the loan.

**Making an early prepayment : **While making early pre-payment, you will considerably reduce your EMI for the majority of your tenure. It is better to consider prepaying part of your loan during early months/years of the tenure so that your principal decreases, hence you save interest on further payments.

**Negotiating with the bank : **If you have a good reputation with your lender and have been disciplinary making your repayments on time, then you may seek permission from your lender for a reduction in the interest rate. If you have exhibited good repayment behavior, there might be chances for a reduction in the interest rate by your lender, therefore, reducing your EMI burden.

**Shifting your loan to another lender : **If you find a lender who’s providing you better terms and conditions on your loan, it might be a good alternative to change your lender. However, it is necessary to calculate the costs involved in prepayment of your loan with your current lender and to ensure that the costs do not exceed your savings you will benefit from your new lender.

**Home Loan EMI Calculator Formula-**

EMI Calculator uses the following formula to calculate your EMIs applicable on a home loan :

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

where,

EMI= Equated Monthly Installment

P= Principal Loan Amount

R= Monthly Interest Rate

N= Number of Monthly Installments

For example : To calculate EMI for a principal value of ₹ 1 lakh, 10% interest rate and 12 months tenure; following will be the calculations:

Principal amount : ₹ 1,00,000

Rate of Interest : 10%

Tenure : 12 months

Calculated EMI : ₹ 8792

It is to be observed from the above example, there are three underlying factors behind EMI payments: principal amount, interest rate, and tenure. The EMI payment is directly proportional to the amount of loan and interest rates, and are inversely proportionate to the tenure of the loan. The higher the loan amount or interest rate, the EMI payments tend to become higher and vice versa. In the case of tenure of the loan, the total interest amount payable increases with the increase in tenure, hence, the EMI payments subsequently fall with an increasing tenure.

**Home Loan EMI Calculator Excel-**

The applicants of home loan can easily calculate their home loan EMI on MS Excel. They need to use the function PMT in order to calculate EMIs.

The following syntax needs to be used while calculating EMI in MS Excel.

**Syntax :** PMT (rate, nper, pv)

The variables used in the above formula are :

**rate –** Rate of Interest on the loan

**nper-** Total number of payments for the home loan

**pv- **Present value/principal

# Home Loan Rate Saga Difficult to Fathom without Understanding MCLR

The demonetization of higher currency notes, as expected, brought about a massive rise in the bank deposits, making it easy for the lenders to lower their home loan rates. While Bank of Baroda (BoB) has slashed its 1-year MCLR to 8.35%, State Bank of India (SBI) cut the same by 90 basis points to 8%. Whereas, the private lender ICICI Bank cuts its 1-year MCLR to 8.20%. So, do you know how does MCLR influence the home loan rates? If not, then this article could tell you the same. So stay tuned as we crack the mystery of MCLR below.

**Origination of MCLR**

The Reserve Bank of India developed the concept of Marginal Cost of Lending Rate (MCLR) to reverse the trend of the inadequate response from the banks with respect to the changes made in the repo rate by the central bank. The repo rate signifies the rate at which the commercial banks borrow from the RBI for their short-term needs. All floating rate loans from April 1, 2016, onwards have already come under the MCLR regime. Typically, it’s home loan that is readily available at floating rates by most lenders. And when you think of its tenure that’s as long as 30 years, you can make hay in times of falling MCLR. However, the downside is the escalating lending rates in the wake of increasing MCLR induced by the hike in repo rates. But since the MCLR is on a declining trend and could continue to fall for a fair length of time, the home loan rates are expected to plunge further. So, the time is ripe for home loans as one would speak of.

**What Does MCLR Include?**

The bank arrives at MCLR based on the following points.

**Operating Expenses**-The day-to-day operational cost of the bank is referred as operating expenses

**Cost for Maintaining Cash Reserve Ratio**– Cash Reserve Ratio (CRR) determines the amount of cash that the commercial banks have to keep with the RBI. The bank does not receive any interest on the said deposit, thus becoming its cost.

**Marginal Cost of Funds- **The costs borne by the banks in the form of interest offered on savings and fixed deposit accounts, as well as the short-term borrowing rate i.e. repo rate.

**Tenor Premium-**This is an additional interest slab over the base rate based on the loan tenure.

**Approach of Bank Towards Setting MCLR**

The bank publishes the MCLR on a monthly basis subsequent to revising it once a quarter. The MCLR for different periods is announced by the bank. The bank publishes MCLR for a fortnight, month, a year, two years and three years. Whatever changes are brought in the 1-year MCLR, the interest rates on a home loan undergo a change. The banks are mandated to specify the rate reset frequency in the loan agreement paper.

There is a catch here to unfold. Want to know what is it? Many borrowers carry the false notion that every MCLR change brings a change in the lending rates. Actually, the loan will be serviced at 1-year MCLR as applicable on the date of loan disbursal for 1 year. For example- You got the receipt of the home loan on 31st August, 2016. The 1-year MCLR applicable at that time was 9.05%. The benchmark rate will continue to apply for a year i.e 31st August 2017. After that, the loans will be repriced. The MCLR changes are applicable for new loans only.

**Differentiate between Benchmark Rate and Lending Rate **

The lending home loan rates are a sum of 1-year MCLR plus the spread. At the start of the ongoing year 2017, SBI bowled a ‘Googly’ to stump out many of its competitors by announcing a 90 basis point cut in the benchmark lending rate. At the beginning, everyone thought that the home rates had fallen to 8%. But in reality, the MCLR was brought down to 8% from 8.90% earlier. The lending rate was 8.60%-8.65% per annum, 60-65 basis point above the benchmark rate. Even though the lending rates fell, but the spread over the 1-year MCLR was more than what was earlier. Before the development, the spread over SBI’s 1-year MCLR was 20-25 basis points, lower than what it is now. In this way, the bank has reduced the transmission of rate cut benefits even by offering the home loan at lower rates.

**Home Loan Rates of Few Banks and Housing Finance Companies**

State Bank of India- 8.60%-8.65% p.a.

Bank of Baroda- 8.35%-9.35% p.a.

ICICI Bank- 8.65%-8.85% p.a.

HDFC Limited- 8.65%-8.75% p.a.

Indiabulls Housing Finance- 8.65%-8.85% p.a.

So, this was MCLR and its impacts on the floating rate home loans. Hope you have understood the phenomenon well to get your dream home soon.

# SBI Home Loan- The Perfect Way to Nurture Your Ideal Home Dreams

There is no other place as comforting and relaxing as your own house. It’s all because your home is sweet home. Building a home of your dreams is a lifetime investment which will bear fruits for a long time. It is the top most priority for any individual. Many times people have to let go of their dream of buying a house because they don’t have enough fiance in store. You require a good sum of money to buy a house and saving for the same is going to take a considerable amount of time. If you too want to buy an ideal home and live in it, then I have a good news for you. There are many home loan products available in the market but there is one product that offers you the best value and attractive interest rate. That product is SBI Home loan. State Bank of India is one of the leading public sector banks in India that has made a special name for itself because of its good services.

The bank is always willing to help people who are in search of finance , so that they can fulfil their home dreams. Both salaried individuals and self-employed individuals can apply for a home loan from the bank. How you use is the loan will depend upon you. It can be used for any purpose, whether it is for buying a house or construction, repair, extension or renovation of an existing property. The maximum tenure for the same is 30 years which is very convenient for the people who avail it. This article has been solely created with the purpose of providing you with every bit of information about the product. Keep on reading.

**Home loan products offered under SBI Home Loan category:**

State Bank of India provides a wide range of products under the home loan category which can meet the requirements of the people. Check them out right now-

- Flexipay Home Loan
- SBI Realty
- Maxgain
- SBI Pal
- Gram Niwas
- NRI Home Loan
- Shaurya Home Loan
- Privilege Home Loan
- Tribal Plus
- Shaurya Home Loan

**Eligibility Criteria:**

The basic step which has to fulfilled while availing a loan is to meet the norms of eligibility criteria by SBI. you can check them right here-

- The applicant should be between the age group of 18 to 70 years. It means the entire loan needs to be fully repaid by the age of 70 years.
- If the applicant desires to secure funds from the bank, then he/she is required to earn a regular income. It is mandatory for all the applicants.

The applicants also have the provision to enhance their loan eligibility. All they have to do is add-

- The income of spouse/daughter/son if any one of them are living with the applicant, and have a steady and stable income. Having a salary account which is managed and operated with the state bank is important
- The rent which is expected from the new property, just in case it is going to be rented out
- Regular source of income from all the available sources

**Documents needed for a home loan:**

The applicant has to ensure that he submits the documents on time if he wishes to successfully complete the process of loan disbursal. Don’t miss to check out the list of documents-

- Completely filled application form
- Proof of Identity- PAN card/Aadhar card/Driving license/Passport/Voter ID card
- Bank statement of the previous six months
- Proof of Residence- Electricity bill/Voter ID card/Telephone bill/Passport/Property tax receipt
- Proof of Income- For salaried individual: IT returns of the past two years/Form 16 along with original salary certificate For Self-employed individual: IT returns of the previous three financial years and Assessment orders
- Three photographs of passport size
- Non- salaried class are required to show a business address proof

**Interest rate and processing fees-**

The rate of interest charged by the bank for a home loan lies in the range of 8.50% to 9.10%. It is very important to check the interest rates thoroughly ass they determine the EMI amount you pay for your loan amount. The processing fee charged by the bank for the same is 035% of the loan amount sanctioned along with applicable service taxes.

The maximum and minimum amount will turn out to be Rs. 10,000 and Rs. 2,000 respectively.

**SBI Home Loan EMI Calculator-**

This is the one of the most important aspects of the article. It is very important for you to know about the SBI Home Loan EMI Calculator. The calculator will allow you to calculate your monthly installment within few seconds. Don’t believe it, you should try on your own. You won’t have to do any tough thing but just enter your loan amount, rate of interest along with the tenure. Then you will simply have to wait for the magic to begin. You will get results showing the EMI amount and the total interest payable on your side. This tool is very useful for you as it will allow you to compare the EMI amount on various interest available. You can choose the best one accordingly. Check this example out to make things crystal clear.

Suppose Divya Singh, a software engineer wishes to secure a home loan of Rs. 10,00,000. She approaches the bank regarding the same and secures the loan amount at a rate of interest rof 9%. The tenure for the same is 10 years. Now, with the help of this tool, you can easily calculate the EMI amount. Let the tool display its magic. Within seconds, you can calculate that the amount to be paid each month will turn out to be Rs. 12,668. The total interest payable is going to be Rs. 5,20,109. All this quick and hassle free calculation has been possible because of this magical tool.

So now you have known all the important stuff about the product. I will suggest you to approach the nearest SBI branch today and complete all the required formalities and avail a home loan. Go nurture all your dreams.

# Home Loan Calculator -Is It worth Using to Pay off Your Loans?

Thanks to the digital world! You can explore-what suits your pocket with ease. Well, guess what loan applicants are thinking of Home Loan Calculators you are on the right track. In all housing finance companies and banking sites, you may find Home Loan Calculators, also called as the EMI Calculators. You can quickly calculate your eligibility, check the proposed home loan amount, interest rate, tenure, EMI Per month as per your convenience.

**Home Loan EMI-**

EMI, short form for Equated Monthly Installment that is paid every month to the bank or any other financial institution till the time loan amount is paid-off completely. It involves the interest on loan along with the portion of the principal amount to be repaid. The sum of the principal amount and interest is divided by the tenure i.e. number of months, in which the home loan has to be repaid. This amount is repaid every month. The interest portion of the EMI would be larger in the initial months and slowly reduce when compared to the principal amount. The exact percentage apportioned towards payment of the principal is dependent upon the interest rate. Even though there will be no change in your monthly EMI payment but the portion of the principal and interest components gets changed with time. With every successive payment, more will be the payment towards the principal and less in interest.

**Home Loan EMI Calculator Formula **

The formula specified below is used by EMI Calculator for calculating your EMIs applicable on a home loan :

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

where,

EMI= Equated Monthly Installment

P= Principal Loan Amount

R= Monthly Interest Rate

N= Number of Monthly Installments

**For example** : In order to calculate EMI for a principal value of ₹ 1 lakh, 10% interest rate and 12 months tenure; following will be the calculations:

Principal amount : ₹ 1,00,000

Rate of Interest : 10%

Tenure : 12 months

Calculated EMI : ₹ 8792

After going through above example, it is noted that there are three governing factors behind EMI payments : principal amount, interest rate and tenure. The EMI payments are directly proportionate to the loan amount and interest rates, and are inversely proportional to the tenure of the loan. The higher the loan value or interest rate, the higher is the EMI payments and vice versa. In the context of tenure of the loan, the total interest amount to be paid increases with the increase in tenure, the EMI payments decrease with an increasing tenure.

**Benefits of using Home Loan Calculator**

**Details Required for Home Loan Calculator-**

Loan applicants, whether you are a salaried or self-employed person-Home loan calculator is a blessing for you. By entering your basic details whether personal and professional like your PAN Card number, Email address, qualification, total income, name and mobile number, you can easily compute your home loan eligibility.

**Accuracy Issue-**

The question always comes up at times in the mind of loan applicant -Is the calculator -accurate which I’m using? It should be remembered, more the details are taken into consideration, more the accuracy. So, always check which websites are asking you to enter maximum details. It will help you plan in advance and pay off comfortably.

**Comparative Analysis-**

Perhaps, home loan calculator is the best arithmetic tool which helps you to recognize your home loan provider. While you start using the different calculator-you can easily spot the difference which providers are giving you for the best deal.

**Navigating Hidden Calculations-**

Simply by making few clicks on your mouse, you can find hidden calculations like how much you require to pay for the balance transfer to any other bank?

**Location of your Home Loan Calculator-**

The loan applicants should always make use the EMI and Home Loan Calculator of their own country or for that country where you are buying the property. This is because the local and government rates are levied subsequently and the result would be more authentic.

**Amortization Schedule-**

A home loan amortization schedule specifies all the essential information that are required towards making your home loan repayments such as loan amount, the period of scheduled payments and outstanding balance. It details about your home loan EMI break-up, repayment of interest information and outstanding principal of the loan. The applicants use the schedule for making decisions pertaining to the prepayment or refinance of a loan and also give details of interest for availing tax exemptions.

**Home Loan EMI Calculator Excel-**

Home loan applicants can easily calculate their home loan EMIs on MS Excel. They are required to use the function PMT in order to calculate EMIs.

They need to follow the below syntax while using the formula in EMI Calculator in MS Excel.

**Syntax :** PMT (rate, nper, pv)

The variables used in the above formula are :

**rate –** Rate of Interest on the loan

**nper-** Total number of payments for the home loan

**pv- **Present value/principal

# Top Banks to apply for Home Loan Online

Home loans are secured loans offered by banks and NBFCs wherein the borrower has to keep some valuable things as the security to the particular lender. In present times, when banks have cut their lending rates recently, the lowest home loan interest rate is offered by Bank of Baroda at 8.35% p.a. However, there are many other options in the market as well that come up with low-interest rates and higher loan amount. Hence, go through the home loan or housing loan interest rates in top 10 banks below:

**Home Loan Interest Rates in Top 10 Banks**

- State Bank of India- 8.70% p.a. onwards
- ICICI Bank- 8.65% p.a. onwards
- Axis Bank- 8.65% p.a. onwards
- HDFC Bank- 8.65% p.a. onwards
- Bank of Baroda- 8.35% p.a.
- Bank of India- 8.65 p.a. onwards
- LIC HFL- 8.50% p.a. onwards
- Canara Bank- 8.65% p.a. onwards
- Andhra Bank- 8.90% p.a. onwards
- Bank of Maharashtra- 8.95% p.a. onwards

It is also important to note that there are certain factors on the basis of which you can get a home or housing loan. These factors are however subject to change from one applicant to another and from one lender to another. Having said that, here are the factors affecting the home loan eligibility:

**Factors Affecting Home Loan Eligibility**

**Monthly Income-** The higher you will earn, the more loan amount you can get. So, the applicants who have a handsome monthly salary are most likely to get low-interest rates as well.

**Age**– If you are a young professional, you will obviously have less financial responsibilities on your shoulders. Hence, a young professional can get an overall great deal of home loans as his eligibility is higher.

**Property Value**– When you buy a property from an authorized dealer, banks will find it easier to finance that property. So, it is advisable to go for a property that would make the loan application easier.

**Credit History**– Be it any loan, having a good credit history is very important as lenders would trust you on the basis of your credit score also. Since defaulters are not much acceptable by the banks for any kind of loan.

**Work Experience**– The stability in the present organization is also another important factors when it comes to housing loan eligibility. Having said that, generally, 2-3 years of job stability is required by the bank for a home loan.

**Your Employer Category-** Banks and lenders generally trust applicants who are working in a reputed firm or MNC. So, if you are one of them, good for you!

**Professional/Business Status-** In the case of self-employed, there must be a good business running experience of an impressive stability in the present profession.

**Relationship with Lender**– If you are an existing customer or a borrower, it will add on to a plus point for you.

**How to check loan affordability**

On the basis of the above rates, you can check your loan affordability also. Loan affordability in simple term means the fund you actually afford for a smoother repayment. Many people often take a loan and then face difficulty while paying it back to the bank. However, checking the EMI, the total interest outgo, and the total amount (interest+principal). For this purpose, EMI calculator is used. An EMI calculator is actually an online calculator that is used to calculate the EMI (Equated Monthly Installment) and other related payment details. With the help of this, you can know in advance the total payment you will have to make for the loan you have taken and then decide if you can afford that particular amount or not.

**Eligibility Criteria**

Once you have done the research and decided to apply for a home loan, you must go through the eligibility criteria as well. The eligibility criterion set by the bank is subject to change from an applicant to another. However, the general eligibility criteria for a home loan is as follows:

For Salaried:

- The applicant must be between 21-60 years
- The minimum annual income should be ₹1,20,000
- Applicant must have the work experience of 2-3 years

For Self-employed:

- The applicant must be between 21-65 years
- The minimum annual income of the applicant should be ₹1,50,000
- There must be at least 3 years of current business stability

**Documents Required**

For Salaried:

- ID Proof (Passport/PAN Card/Voter Card/Driving License)
- Address Proof (Passport/Ration card/Utility Bill)
- Last 3 months salary slip
- 2 Passport size photographs
- Last 1-year bank statement with salary credit details

For Self-employed:

- ID Proof (Passport/PAN Card/Voter ID Card/Driving License)
- Address Proof (Ration Card/Passport/Utility Bill)
- Last 3-years ITR with the details of profit and loss
- Last 1-year bank statement (both credit and savings account)

**How to apply**

Now that you have got all the information, you can apply for loan without any hassle.Thus, with the all the above details, you can easily apply for the loan in any of the top banks that suits your purpose.

# Compare the Housing Loan Interest Rates to Reduce the Cost of EMI

Most of the people aspire to live in the dream home but wait for the right time when they’ll be in a position to buy one with the wealth accumulated in the lifetime. Throughout the life, they save money in hope that one day they will own a house. But by the time they accumulate the amount, the economic condition change and prices soar. Which in turn results in further postponing the plans of moving into a self-owned home. Mind it, whenever you get a home of your choice just book it and the finance could be arranged easily by taking a home loan. There are number of banking and financial institutions that can assist you buying your dream home. But before choosing the financiers compare the housing loan interest rates charged by them. This will help you get the best deals and reduce the burden of repayment.

It is always advisable that the borrower must check the lending rates of various banks and housing companies before availing a credit facility. It is only after going through the rates and other product features that the borrower must select the lender and apply for the loan. The borrower must even calculate the repayment amount as this will help him plan the future expenses and save him from defaulting. The borrower can calculate the repayment amount by using the fixed deposit calculator.

In the further article, the housing loan interest rates of various banks and the method of calculating interest is discussed.

**Home Loan Interest Rates Offered by Various Banks:**

The housing loan interest rates of various banks are as follows:

**State Bank of India-**

The State Bank of India offers home loans at an attractive rate of interest. It charges interest at both fixed and floating rates. The fixed rate of interest on the loan amount up to ₹ 30 Lacs for first 2 years for women borrowers is 8.50% p.a. and for others, it is 8.55% p.a. While the floating rate of interest is as follows:

- Up to ₹ 75 lacs: The interest rate for women borrowers is 8.60% p.a. and for others, it is 8.65% p.a.
- Above ₹ 75 lacs: The interest rate for women borrowers is 8.65% p.a. and for others, it is 8.70% p.a.

**HDFC Bank-**

The HDFC Bank provides housing loans at reasonable rates and for longer tenure lasting up to 30 years. The lending rates variates as per the slab. The rates prevalent on various loan amount are as follows:

- Up to 75 lakhs – For women applicants, the rate of interest ranges from 8.65 to 9.15% p.a. while for others it is 8.70 to 9.20% p.a.
- Above ₹ 75 lacs – The rate fluctuates from 8.70 to 9.20% p.a. for women applicants and for others it is 8.75 to 9.25% p.a.

**ICICI Bank-**

At ICICI Bank, one can avail loan up to ₹ 3,00,00,000 for the maximum period of 20 years. The loan is charged at both fixed and floating interest rate. For women borrowers the floating interest rate variates from 8.65 to 8.80% p.a. and fixed rate ranges from 8.70 to 10.05% p.a. On the loan of amount up to ₹ 28 lacs, the rate of interest for weaker section borrower is 8.65% p.a. However, the floating rate of interest on loan availed by salaried and self-employed individuals ranges from 8.70 – 8.85% p.a. And the fixed rate variates from 8.70 – 10.10% p.a.

These were the rates offered by some of the banking institutes. But now it is important to know how are these rates determined or what are the factors that affect the interest rates. The factors that contribute to the determination of housing loan interest rate are mentioned below:

**Factors Affecting Home Loan Interest Rate:**

**Income**– The income of the applicant is the major factor that helps in deciding the loan eligibility and the rate of interest. The salary or the revenue earned by the applicant during a financial year is a major concern of all the lenders. The applicants with high income get loans at an attractive rate of interest.

**Credit History**– Another important factor that helps in deciding the lending rate is the credit history of the applicant. The applicant having clear records and good credit score are likely to get a loan at pleasing rates.

**Location of Property**– Unlike other loans, in a home loan the location and the surroundings of property make much of a difference. Even the name of builder/agency you are purchasing home from impacts the eligibility and rate of interest. So, it is advisable to buy a house from the trusted builders.

**Value of Property **– The value of property too affects the housing loan interest rates.

**Article Source: **http://wishfin.weebly.com/blog/compare-the-housing-loan-interest-rates-to-reduce-the-cost-of-emi

# How does Housing Loan Calculator Work

A housing or home loan calculator is the tool that is used to calculate the EMI. It has many names like interest calculator, EMI calculator, and loan calculator but they are one and the same thing. This calculator has made it possible for people to calculate their monthly installment they are liable to pay to the bank for the loan they have taken. This calculator is not restricted to the calculation of the installments of a home loan, you can know the monthly installments of all kinds of loans be it a personal loan, a car loan, a loan against property or a business loan, etc. However, if we talk about the home loan calculator, the usage is actually very simple and customer-friendly.

**Functioning of Loan Calculator**

Focusing on the housing loan calculator in this article, let us see how can you calculate your EMI or interest with the help of this online tool called loan or EMI calculator. To start with, you must know that this tool would take into account the basic details of your home loan which are:

- Loan amount
- Tenure
- Interest rate

Now, when you mention the above details in the calculator, it would give you the data of the EMI, the total interest outgo, and the total amount (principal+interest). Here is an example with the loan amount ₹20 lakhs with the tenure of 15 years and interest rate of 8.35% p.a.

EMI: ₹19,519

Total interest outgo: ₹15,13,480

Total amount: ₹35,13,480

**EMI Formula-**

Here is the formula to calculate the EMI or equated monthly installment:

E= P.r. (1+r)*n/((1+r)*n -1)

Where,

E=EMI

P=Principal loan amount

r= Rate of interest on monthly basis (r= Annual rate of interest/12/100)

n=Loan tenure

**What makes Loan Calculator unique?**

Even though there are many ways to do the calculation, a loan calculator is still different from others. So, here are the benefits of using a housing loan calculator:

**Accurate results**– One of the main advantages of using an EMI calculator is that it gives you accurate results, unlike manual calculation where the possibility to make mistakes is more. So, whenever you want to know the information about your loan, use an EMI calculator and get the idea of the exact payment you will have to pay to the corresponding bank.

**Time-Saving**– Since everyone is getting busier each day, a tool like this makes it convenient for people to save time. As soon as you mention, the amount, the interest rate and the tenure you have been offered, you get the details of all the payments within few seconds.

**Flexible Adjustable**-You will be surprised to know that you are free to use the calculator n number of times. Yes, generally, people prefer using this tool before applying for any loan to check their affordability. By doing so, you get the option to do

**Easy Comparisons**– With the help of the calculator, you can compare all the home loan offers available in the market and then choose the best one for yourself.

**More than EMI**– The calculator gives the information more than the monthly installments like the total interest outgo and the total amount (principal+interest). Other than these, you get the amortization schedule.

**Suits your Budget**– When you check the installments in advance, you can see if you will be able to manage that particular amount without affecting your other financial liabilities.

**Accounted Processing Fee**– A normal EMI calculator would tell you the payments only on the basis of the interest rates. But, as you know there are some processing fees charged on your loan which is not included in the interest rate. Since, the interest rate offered by the banks do not count processing fees, w loan calculator would let you know the payment excluding the other charges. However, there are some calculators that would count the processing fees also.

Now, as you can see the above benefits, it is quite obvious that a loan calculator is unique in all the ways be it the instant result requirement or the detailed information of the loan.

**Top EMI Calculators in India:**

In India, there are thousands of banks and NBFCs that provide home loans, hence there are n number of calculators as well. Having said that, a borrower can use any of the following calculators for his/her purpose:

- Home loan EMI calculator HDFC
- Home loan EMI calculator SBI
- ICICI Home loan calculator

Thus, by going through the above details about the housing loan calculator, it will be quite easy and understood for you as a borrower to use this. With the help of this, you can know in advance your payments and for sure manage your other monthly financial expenses accordingly.

# 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.