Home loans simplify the gigantic task of buying a home. Properties have become insanely expensive, and the majority of people look for financial assistance in the form of home loans while buying a property. Borrowers repay home loans in the form of affordable monthly payments known as EMIs. Borrowers have the flexibility to choose the EMI amount based on their affordability. Further, while personal loans and other loans compel borrowers to borrow money at a hefty rate of interest, home loans are the cheapest of all loans and with the right credit profile, borrowers can borrow money at as low as 8.50% per annum. Further, home loans come with home loan tax benefits which can help borrowers save further. These factors combined have been driving the demand for home loans in India. Today, almost 70% of all homebuyers avail of home loans to facilitate their property purchase. While home loans are a blessing, getting approved for one can prove to be a huge hassle. To enhance their chances of getting approved for a loan, home loan borrowers must make a home loan eligibility checker an integral part of their home loan application process.
Home Eligibility Checker Explained
A home loan eligibility checker is an online tool that home loan borrowers can use to calculate the home loan amount that they are eligible for.
Every home loan applicant is eligible only for a certain amount. Lenders calculate this loan amount based on factors such as the loan applicant’s age, income and job stability, credit score, etc. When a home loan applicant applies for a home loan amount they qualify for, lenders immediately approve their loan application as the loan amount is in line with the loan applicant’s repayment capacity. However, when a loan applicant applies for a loan amount much higher than their income allows them to repay, the chances of loan approval go down considerably. Thus, home loan applicants must use a home loan eligibility checker to calculate the loan amount they are eligible for and apply for this amount only to experience quick loan approval and processing.
Here is how a home loan applicant can use a home loan eligibility checker to calculate the loan amount they qualify for.
1. Enter your current monthly income.
2. Enter your desired loan tenor or the number of years you need to repay your loan.
3. Enter the rate of interest you are being offered.
4. Lastly, enter details about any other EMIs you may be servicing currently.
Once these details go into the calculator, the home loan eligibility checker will give you the home loan amount you are eligible for as well as your home loan EMIs if you decide to go ahead with this loan amount.
The home loan eligibility checker is a powerful and handy tool that not only allows you to know the amount you are eligible for and increase your chances of loan approval by applying for this loan amount or something lower but it also gives borrowers the opportunity to do monthly budgeting and prepare their repayment strategy beforehand to avoid any future hassles.
Here is a look at why home loan applicants must make the home loan eligibility checker a part of their home loan journey.
- A home loan eligibility checker enhances one’s chances of getting approved for a home loan by helping the borrower figure out the loan amount they qualify for.
- A home loan eligibility checker helps borrowers decide the right loan amount for them. When individuals borrow what they can comfortably repay, repaying a loan becomes truly hassle-free.
- By helping borrowers decide the right loan amount for them, a home loan eligibility checker saves borrowers from late penalties, etc.
- A home loan eligibility checker helps borrowers save time and energy which they can use for other tasks, such as researching the right lender for them and negotiating with them for good loan terms and conditions.
In short, a home loan eligibility checker is a powerful and highly beneficial tool that every home loan borrower must make a part of their home loan journey. These tools are easily available on the internet, so finding one won’t be a hassle.
