Home loans are a long-term commitment. These loans go on for years and therefore, one must be extra cautious while availing themselves of home loans. The tenor for home loans extends between 15 to 30 years. Further, since home loans involve a substantial amount of money, borrowers must borrow carefully and after taking into account their income and repayment potential.

All lenders offer online handy tools that home loan borrowers can use to check their home loan eligibility as well as plan repayment. One such tool is the home loan eligibility calculator. However, before we talk about home loan eligibility calculators, let us look at what is home loan eligibility. 

All lenders have strict home loan eligibility requirements. Lenders set forth these requirements to eliminate loan applications from people who are incapable of repaying loan money on time. Home loan eligibility takes into account factors, such as credit score, income, debt-to-income ratio, age, etc. Borrowers with high creditworthiness and repayment capacity have high home loan eligibility. On the other hand, borrowers with low creditworthiness and repayment capacity have low home loan eligibility. Home loan applicants can check their home loan eligibility with the home loan eligibility calculator. Let us tell our readers a little more about this handy tool.

A home loan eligibility calculator is an online tool that home loan borrowers can find on their lender’s website. The calculator is easy to use. If you want to use this calculator to calculate the loan amount you are eligible for, simply follow these steps:

1. Go to your lender’s website and access the calculator. 

2. The calculator will allow you to share your gross monthly income. Please include income from all sources while calculating your net monthly income.

3. After this, select the tenor that you wish to go for. For instance, if you plan to repay your home loan over 20 years, drag the bar on the horizontal line to 20. 

4. Next, enter the housing loan rate of interest that your chosen lender is willing to offer you.

5. During the next step, mention any other EMI obligation you have. For instance, if you have a car loan and you pay Rs.5,000 towards it, enter this in the box provided. 

Once you enter these values, the calculator will give you the housing loan amount you are eligible for. When you apply for a loan either apply for this loan amount or something lower. Doing so would allow you to get approved for the loan quickly and also avail it of on low home loan interest rates, thereby making the process of home loan repayment easier. Home loan eligibility calculators are easily available online these days. They are also easy to use and one need not pay any penalty to pay the fee. 

Finally, if you are planning to avail yourself of a home loan, make it a point to avail yourself of a low home loan interest rate. Having a stable income and job, a credit score above 750, a low debt-to-income ratio and a low LTV ratio will help you do so.