Guide on How to Use Home Loan Eligibility Calculators- Kotak Bank

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Guide on how to use home loan Eligibility Calculators 1440 x 400

13 AUGUST, 2019

Buying a home is generally a once in a lifetime investment that merits good amount of research and equal amount of budget-management. One would need to put together a sizeable corpus to buy a house. However, home loans come to a homebuyer’s aid by providing sufficient financial support to buy a house. To avail a home loan, you need to first establish yourself as an eligible home loan applicant.

The relation between eligibility and financial stability
It is crucial for you to find out your eligibility for a home loan before starting the home buying process. Your financial stability influences your eligibility primarily for getting a home loan. Home Loan lenders consider annual income of applicants along with other factors like assets and liabilities. Lenders like to establish that you are financially stable and thus, able to repay their loan in a timely manner.
Depending on the income of the applicants, loan lenders calculate the disposable amount available for repayment. Disposable income is the amount of money left after deducting all existing obligations. . The higher the disposable income, the more are the chances of getting a higher home loan amount.

Finding out eligibility for a home loan
You can find out your eligibility for availing a home loan by using a home loan eligibility calculator. This calculator will help you find out the amount of home loan you are eligible for. It is a self-help tool that you can use to plan your budget accordingly. Following are the factors that are taken under consideration by a home loan eligibility calculator,

Age of the applicants
Financial position
Credit history
Credit score
Financial obligations (if any)

Calculation of home loan eligibility
You need to fill in the fields requesting for information, within the eligibility calculator. Generally, eligibility calculators have the following options,

Gross income (Monthly) in rupees
Loan tenure in years
Interest rate: Every loan lender has pre-decided home loan interest rates for different categories from which you can choose the suitable one.

A home loan eligibility calculator is simply a mathematical tool, which provides you with an indication of your eligibility and your expected EMI amount. Once you get an idea about the amount required to be eligible for the home loan, you can get started with your efforts towards applying for a home loan.
Using online eligibility calculators helps you to find out your eligibility in just a few minutes. It also gives you a head start to plan your budget to manage the repayment of home loan. In other words, an eligibility calculator makes part of the process of a home loan application hassle-free and transparent for you.

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.