Home Loan Eligibility Calculator computes the Home Loan Amount & EMI eligibility and Maximum Value of House that you can afford based on your Gross Salary, Loan Tenure and other EMIs that you are already paying. It also provides you with a visual chart displaying Break-up of Principal Amount and Total Interest Payable over the Loan tenure.
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Home Loan Eligibility Calculator (Excel)
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How to use Home Loan Eligibility Calculator? – Some Tricks & Tips
Let us take an example of Arpit Taneja, 33, Senior Manager in a BPO and earning about Rs. 1 lakh per month Gross Salary. He wants to purchase a house in Delhi NCR. For that he wants to check his home loan eligibility so that he knows his house affordability limit and how much Down Payment he would have to make.
Now, let us calculate using Home Loan Eligibility Calculator.
Enter following inputs:
Gross Monthly Income 
Enter pre-tax total monthly income from salary, rent or any other source. Eg. Rs. 1 lakh in Arpit’s case.
Tip – (1) You can include pro-rata portion of your annual bonus in your monthly income. (2) You can further increase your Home Loan Eligibility and House Affordability by applying for a joint loan either with your spouse or with your parents. In this case, enter your combined gross annual income here.
Loan Tenure
Enter Loan Tenure for which you are seeking loan. For eg. 20 years for Arpit.
Tip – If you want to check your maximum House Affordability, you can check your maximum eligibility @ 30 years loan tenure or maximum years left in your retirement, whichever is lower. But please keep in mind that increasing the tenure also increases your interest burden.
Interest Rate
Enter prevailing home loan interest rate. I you have not yet got a deal, you can enter latest SBI home loan interest rate here.
Tip – Do some good research online, talk to a couple of Banks and go with the lowest monthly reducing interest rate. Some banks may promise a much lower flat interest rate. Don’t fall into the trap, you should compare only monthly reducing interest rates.
Other EMIs
Enter total amount that you are paying in other EMIs of any Home Loan, Personal Loan, Education Loan or any other loan. For eg. Arpit is paying an EMI of Rs. 15,000 for his car loan.
Tip – You can increase your Loan Eligibility and House Affordability by paying off your other smaller loans.
The Home Loan Eligibility Calculator calculates approximate eligibility values based on general guidelines of Banks. These values may differ a little from Bank to Bank. But these values will give you a fair idea about your Home Loan Eligibility and maximum value of House that you can afford.
Other factors that affect your Home Loan Eligibility
Age
Most banks have a minimum age of 21 years and they lend upto a maximum age of 70 years or retirement age whichever is earlier. The age also determines the tenure and EMI of the loan. For e.g. if an individual is 40 years of age and retires at an age of 60 then his/her loan tenure will be 60-40=20 years and his /her EMI will be calculated accordingly.
Credit History
This is another important factor for Home Loan Eligibility. These days, every Bank will look at your credit rating before approving any loan for you to check whether you have paid all your past loans or credit card bills on time. A small default in a credit card payment can cause problems when you apply for a home loan. To avoid such troubles, you can generate your own Credit Rating Report from CIBIL website and clear all your dues before applying for a home loan. Generally speaking, it is always better to have a good credit history.
Loan to Value Ratio (LTV)
Some banks lend upto a maximum of 85% of the House Value in some cases. Generally, most banks will lend upto a maximum of 80% LTV.
Income Pattern
Banks like to lend to people with fixed patterns of income. Hence, they prefer salaried people for home loans. In case you are a self-employed person, you should file your Income Tax Returns promptly to establish a pattern of income.
Maximum Loan Period
Most banks lend upto a maximum of 30 years loan tenure while some lend upto a maximum of 25 years or 20 years, depending on various factors.
Loan Value Cap
Some banks have a minimum and maximum cap on loan value for eg. a bank may lend a minimum amount of Rs. 1 lakh and a maximum amount of Rs. 5 crores. In case you have a very high requirement of home loan, check with the bank whether it can lend that amount.
Type of property
Generally, banks lend for purchase of a ready to move in or under construction property. It is difficult to get a loan for purchasing a raw plot. Also, the title of the property should be clear, it should be free from any encumbrances and property should be registerable. Before purchasing any property on a loan, you should satisfy yourself that all these conditions are met.
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