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:

  1. Application form duly signed by the applicant along with the photograph
  2. ID proof & Resident Proof
  3. Processing fee cheque
  4. Last 6 months bank statement
  5. Documentation for salaried applicants:
  • Last 3-months salary slips
  • Form 16 along with recent salary certificate
  1. 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. 

axis bank home loan eligibility

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.

home loan emi calculator

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.

home loan rates

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.

home-loan

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

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 online

Home Loan Interest Rates in Top 10 Banks

  1. State Bank of India- 8.70% p.a. onwards
  2. ICICI Bank- 8.65% p.a. onwards
  3. Axis Bank- 8.65% p.a. onwards
  4. HDFC Bank- 8.65% p.a. onwards
  5. Bank of Baroda- 8.35% p.a.
  6. Bank of India- 8.65 p.a. onwards
  7. LIC HFL- 8.50% p.a. onwards
  8. Canara Bank- 8.65% p.a. onwards
  9. Andhra Bank- 8.90% p.a. onwards
  10. 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.