Home prices are constantly fluctuating at the moment, with the RBI experimenting with the repo rate to reduce inflation. However, with the festivities around the corner, there are a large number of home loan offers available from both banks and other financial institutions that can help customers buy their dream homes.
In order to make the most of the home loan Diwali offers, customers need to check whether they are eligible for it. The best way to calculate home loan eligibility is by using the home loan eligibility calculator.Â
Factors considered while calculating home loan eligibility
Setting the right budget is an important aspect of the home-buying journey. Unless a person is aware of how much home loan they can expect, the purchase journey cannot move ahead.Â
Diwali is an auspicious time for Indians to invest in something good. Therefore, different banks and financial institutions come up with exciting offers to attract more customers. However, to be eligible for such offers, certain home loan eligibility criteria are to be met by the applicants.Â
Here is a list of some important factors that are taken into consideration while deciding the eligibility for Diwali offers 2023:
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Income
An applicant’s capacity to repay a loan depends on how much they earn. This is the most important home loan eligibility criteria about a borrower that lenders check. Higher the income, higher the chance of getting approval for a home loan. Many financial institutions use the multiplier method to find out the maximum loan amount eligibility for an applicant.
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Age
Age is another important factor when it comes to deciding the loan tenor. Lenders generally prefer borrowers who are younger as they have a high probability of repaying the loan due to their longer working life. Bajaj Housing Finance home loans have a maximum age limit of 70 years for the self-employed and 75 years for salaried individuals.Â
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Profile of the borrower
An applicant’s income source plays a crucial role in deciding whether a person is eligible or not. A stable and sufficient income is a must to be eligible for home loan festive offers. In general, salaried employees are considered more stable than self-employed people. However, this might vary from lender to lender and the borrower’s financial profile.
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Repayment capacity
A person’s repayment capacity is calculated after assessing his/her income and liabilities. In case an applicant has any other active loans for which they are paying EMI, the repayment capacity further comes down. Repayment capacity is an important factor taken into consideration while deciding the maximum amount a borrower is eligible for.
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Property value
The value of a property is collateral for a loan; therefore, lenders offer loans up to a certain percentage of the property’s value. This means if the value of a property is low, then applicants will not be eligible for a higher loan amount even if all the other aspects of the eligibility criteria are met. RBI has set a loan-to-value ratio of 90% for property value of up to Rs.30 lakhs, 80% for a property of Rs.30 lakhs to Rs.75 lakhs and 75% for a property above Rs.75 lakhs.
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Income of co-borrower
If a person is not eligible for a home loan, he/she can take the help of a co-borrower to enhance their home loan eligibility. Co-borrowers need not be joint owners of the property.
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Fixed obligation to income ratio
Individuals who have a lower FOIR are likely to receive better home loan options from lenders. Lower FOIR means higher disposable income, which increases the chances of repaying the entire loan amount timely.
How is home loan eligibility calculated for Diwali offer?
Many lenders like Bajaj Housing Finance have come up with a unique Diwali special home loan for their customers. By opting for this offer, borrowers can avail a loan and pay a very low EMI.Â
The offer is valid for loans disbursed till Diwali. Applicants need to have a good credit score of 750 or more to get approval for this offer.Â
Prospective borrowers can visit the official website of their preferred lender to check whether they are eligible for this offer. They can easily check whether the parameters that the lender has set are being met or not.
However, there is another way to calculate home loan eligibility. Prospective homeowners can use an online home loan eligibility calculator to find out whether they are eligible for the home loan amount that they want, as well as know the EMI and repayment tenor.Â
Steps to calculate home loan eligibility for Diwali offer using eligibility calculator
Here are the steps that potential borrowers can follow to use an online home loan eligibility calculator:
Step 1: Navigate to the online eligibility calculator.Â
Step 2: Applicants need to start by providing certain information like date of birth and city of residence.Â
Step 3: Enter a value for the parameters mentioned in the home loan eligibility calculator. Some of those are:Â
- Net monthly salary
- Loan repayment tenor
- EMIs of any existing loan
- Other sources of monthly income
- Other monthly financial obligations
Step 4: The calculator will give the results in a few seconds.Â
Before applying for a home loan from a lender, it is important to understand their eligibility criteria. It is best to opt for a home loan that comes with a comfortable repayment tenor option. Some banks and financial institutions offer pre-approved home loan offers for their long-standing customers. Opting for this opportunity enables faster loan disbursal. Applicants can go to the official website of their preferred lender to check whether they are available for any such offer.
