What is a Home Loan Eligibility Calculator
Today calculating the quantum of loan you can get with your given salary and credit history, is almost as easy and immediate as the thought of getting a home loan to buy your dream home. All you need to do is use the home loan eligibility calculator, toggle around with the different values like your net income, pre-existing EMIs you are servicing, other income, age, city, preference of tenor among other factors (you don’t even have to key them in!). Now you may have basic questions about what is this calculator, how does it work and what is it’s use. Here we answer all these questions for you.
What is a Home Loan Eligibility Calculator?
The calculator simply gives you a clear picture of how much home loan you can easily get with your given salary income, other income and other ongoing debt obligations. The purpose of the calculator is to help you plan your finances better before you get an instant home loan from Bank of Baroda.
How is Home Loan Eligibility Calculated?
Banks vary in their minimum eligibility criteria for home loans. But most banks consider an applicant, if you are a Resident Indian or a Non Resident Indian or Persons of Indian Origin meeting the given criteria, salaried or self-employed, aged not less than 21 years (18 if you are a co-applicant) and not more than 70 years. Lenders provide home loan eligibility calculators online on their websites to give you an idea about how much of a home loan can you expect to receive with your current financial position. Based on your inputs about your current monthly income, other income, preferable tenure, age, retirement age among other factors, the calculator using an algorithm, gives you a representative value of the loan size you can expect to get.
How to use a Home Loan Eligibility Calculator?
Though these parameters may vary from lender to lender and some banks may have fewer parameters to fill in, all you need to do is, open the home loan eligibility calculator page and key in or select the following
- Your location
- Age or date of birth
- Select your net monthly income
- Select other income
- Select the loan tenure you would prefer
- Some banks may ask details for the current EMIs you are already servicing
- Click on the button Check Home Loan Eligibility (or variants of it) to get the value of the loan you can expect to get
Does the home loan eligibility calculator give the exact EMI amount I will need to pay?
The home loan eligibility calculator is more indicative designed to help a probable home loan borrower with some estimates of how much the loan amount will be, with current income and debt obligations. The results of the calculations are an approximated outcome meant for general information purpose.
What are the benefits of using a home loan eligibility calculator?
It gives you a good estimate to plan your home loan EMIs and compare the loan values from various lenders and settle for the cheapest and most reputed one.
How do I know if I am eligible for a home loan if I want to borrow funds for construction of a house or purchase of a plot of land, from say Bank of Baroda?
All resident and non-resident Indians between 21 and 70 years are eligible for BOB home loans for
- Purchase of new / old dwelling unit.
- Construction of house.
- Purchase of plot of land for construction of a house.
- Take Over of a loan already taken from other Housing Finance Company / Bank.
- Repayment period up to 30 years (floating rate option).
- Reimbursement of cost of Flat/House purchased/constructed within 24 months
Loan amount: The approved home loan amount varies according to location and income of the applicants. For instance, in semi-urban and rural areas the maximum amount is Rs. 1 crore, while in metros the maximum home loan amount can range from Rs. 5 crore to Rs. 10 crore.
Interest rate: Bank of Baroda offers attractive interest rate on home loans. The interest rate is linked to the BRLLR (Baroda Repo Linked Lending Rate) of the bank and is reset monthly.
Tenure and moratorium: The tenure on our home loans varies based on the loan amount and the income of the borrower, and the maximum tenure is 30 years. There is also a moratorium period on home loans, which can be a maximum of up to 36 months.
Collateral: We require collateral against home loans. Generally, we accept mortgage of the constructed or purchased property as collateral. In some specific cases, collateral for home loans can be accepted in the form of insurance policies, government promissory notes, shares and debentures, gold ornaments etc.