Factors that can Impact your Home Loan Eligibility


If you're planning to apply home loan and wish to opt for a home loan, remember that there are various parameters that could affect your eligibility.
The following ways through which banks or lending institutions decide whether or not you will be able to repay the sanctioned amount within the stipulated time period.



Financial Fitness of Loan Candidate -

Salaried or business person current income and how much more likely to earn in the future has a huge impact on the amount your lender decides to disburse as loan.

Age Criteria for Home Loan -  

This is one of the most important factors because age indicates the tenure of your loan. The younger the applicant is there is more probability of getting a loan. Most banks and HFCs allow a maximum tenure of up to 30 years or until the age of retirement from the day of sanction.

Credit Score Criteria - The credit scores in the range of 700-750 are generally regarded as fairly good and scores above 750 are considered to be excellent. Applicants with good credit score are preferred by banks. Excessive use of credit cards and late payments could pull down your score, making it difficult for you to avail loans.

Financial Liability - If you have existing liabilities such as a car loan or huge credit card debt. Banks or lending institutions are wary of disbursing loans to such individuals because it could lead to default from the borrower’s end in case, he is unable to bear the burden of another loan.  


Click here to know more about the Home Loan Eligibility Criteria.

Home Loan Interest Rate


There are mainly two types of interest rates, namely floating & fixed interest rates. Different banks in India provide their customers with different interest rates. At EMImantra, you can compare the different rates of different banks and companies so you can easily take decision about the bank from which you want to avail the loan. You can compare home loan offers based on various comparisons like interest rates, EMIs, eligibility factors for various providers and other fees.


HOME LOAN EMI Calculator


The home loan EMI calculator helps you to calculate your home loan EMIs that you will need to pay towards your Home Loan and helps make an informed decision. It is an automated system which helps you calculate home loan EMI. Manual EMI calculation is a very complicated process which can be time consuming and exhausting.


To calculate the EMI on Home Loans, you need to know your principal amount, the tenure of the loan and the rate of interest. You can use EMI Mantra home loan calculator and get an approximate amount.
 
This is how EMIs are calculated:

EMI = [P*R (1+R)^n] / [(1+R)^n-1]

Where P = Principal Amount

n = Number of monthly instalments

R = Rate Of Interest


The EMI Mantra home loan EMI calculator also functions as a home loan interest calculator. Based on your Home Loan tenure and interest rates, the housing loan EMI calculator will also help you to better understand the ratio of the principal amount of the interest due.