Why Use an Eligibility Calculator for Home Loan?
An eligibility calculator for home loans is an invaluable tool for prospective borrowers. By giving you an initial estimate of your eligibility for a home loan, this mortgage affordability tool can save you time and effort by giving you a clearer picture of what to expect before you apply for a loan.
[Calculator]
Disclaimer: Please note that these values are estimates for demonstrative purposes only. Actual eligibility will depend on a number of factors, including SMFG Grihashakti policy at the time of loan application. Please contact us or apply now to know more.
How to Use SMFG Grihashakti’s Home Loan Eligibility Calculator
Using our housing loan eligibility checker is very easy and involves the following steps:
- Enter the value of the property you wish to purchase in the home finance eligibility calculator
- Select whether the property is commercial or residential
- Enter your monthly income
- Enter your net monthly obligations. This is the sum of all EMIs you are currently paying. If you don’t have any ongoing EMIs, please enter zero.
- Select interest rate and tenure
You will be able to see the maximum home loan amount you may be eligible for on the right side along with the monthly EMI. You can vary the interest rate and tenure in the eligibility assessment calculator to understand how these factors may impact your loan amount eligibility.
Please note that actual eligibility will be determined on the basis of several other criteria including CIBIL score, creditworthiness, repayment capacity, nature and value of property, nature of employment, etc. and SMFG Grihashakti’s policy at the time of home loan application.
Home Loan Eligibility Criteria
SMFG Grihashakti requires individuals applying for home loans to meet the following basic eligibility parameters:
Eligibility for Home Loans for Salaried:
- Multinational cos/listed public ltd cos/govt.
- Organisations private ltd cos / closely held or unlisted companies/partnerships/proprietorship firms
Eligibility for Home Loans for Self-Employed:
- Self-employed individual businessmen/sole proprietorship
- Self-employed professionals - doctors /architects / CA’s
- Partnership firms
- Private limited companies/closely held/unlisted companies
*Please note that other parameters such as your age, CIBIL score, repayment capacity, nature of employment, and several other factors will also be taken into consideration to determine your eligibility for a home loan.
How to Check Home Loan Eligibility Online?
As a prospective home loan seeker, you can conveniently determine your eligibility from the comfort of your home using digital tools such as a house loan eligibility calculator. These loan approval estimators are available on the websites of most financial institutions.
To streamline the process, start by visiting the home loan eligibility calculator page and inputting essential information such as:
- Monthly income
- Net monthly obligations
- Market Value of Property You Wish to purchase/construct
- Interest rate
- Loan tenure
Evaluating the home loan eligibility criteria offered by different providers enables you to compare options effectively. This step is crucial in choosing the right housing loan, ensuring you benefit from favourable EMIs and can manage timely repayments.
How to Enhance Home Loan Eligibility?
Here are some actionable steps you can take to improve your housing loan eligibility:
- Adding an earning family member as a co-applicant
- Ensuring a steady income, such as regular savings and investments
- Presenting details of additional income sources
- Maintaining a record of variable salary components
- Rectifying credit score errors
- Repaying ongoing loans and debts
Using a house loan eligibility calculator can give you a better picture of how the above-mentioned improvements affect your eligibility.
How to Improve Your Home Loan Eligibility?
Factors like advancing age or an unstable income can hinder securing the ideal home loan for your dream property. Yet, there are strategies to potentially boost your eligibility. Here are five key tips to significantly enhance your chances of qualifying for a home loan:
- Consider Applying With A Co-Applicant: Applying with a co-applicant, like a family member, can increase eligibility and share the financial responsibility. The financial burden is shared and tax benefits are enjoyed by the co-applicant.
- Choose A Longer Loan Tenure: Opting for a longer tenure may result in lower EMIs, positively impacting your repayment track record and eligibility. It may put a burden on your pocket to make substantial payments.
- Repay Existing Loans: Clearing existing debts improves the Debt-to-Income Ratio, a vital factor in determining eligibility. Prepay all of your existing loans to improve your credit score and increase loan eligibility.
- Maintain A Good CIBIL Score: Maintaining a credit score of 700 or above reflects strong repayment capacity, enhancing home loan eligibility. Keep a regular check on your credit score to avoid rejection and defaulting.
- Specify Additional Income Sources: Specifying all supplementary income sources, such as rental income, contributes to an improved debt-to-income ratio, positively influencing housing loan eligibility.
Home Loan Eligibility Documents
Your eligibility for a home loan will be verified through specific documentation to process the application towards gaining approval.
Here is a basic document list for your easy reference.
- Proof of Identity – PAN Card, Voter’s Card, Driving Licence, Employee Card
- Proof of Residence – Aadhaar Card, Latest Electricity Bill/Piped Gas Bill, Ration Card, Property Tax/Water Bill
- Co-applicant Guarantor – KYC documents
- Proof of Income for Salaried Individuals – 6 Months Bank Statements with Salary Credit, Last 3 months Pay Slips, Form 16 for 2 years
- Proof of Income for Self-Employed Individuals – 6 Months Bank Statements for Primary Account, IT Returns for the last 2 years, CA Audited Financials (if applicable)
- Documents pertaining to the property you wish to purchase will also be requested
Factors That Impact Your Housing Loan Eligibility
Besides using the housing loan eligibility calculator to ascertain your maximum loan amount, and the basic eligibility criteria, there are a host of secondary factors that can affect your home loan eligibility. These include:
a. The Applicant’s Age: Generally, applicants must be above the age of 21 for home loan products . As a result of their extended working life, younger applicants have a higher income potential which works in their favour when applying for a home loan. Also, the applicant cannot exceed 65 years of age at the time of loan maturity. Thus, a 50 year old applicant may be only able to get a home loan if he selects a tenure of 15 years.
b. Type of Employment: Salaried individuals with a stable job at a reputed organisation may be given a better preference.
c. Income: The inflow of income on a monthly basis determines the amount for your instalments that the individual will be able to afford towards the home loan.
d. Credit Report & Score: The applicant’s past credit behaviour is reflected in the Credit Score and Report generated by CIBIL. A score of 700 and above indicates that the applicant may be a good candidate for a home loan.
e. Existing Financial Commitments: In addition to income, we also take into account existing EMIs to ensure that the home loan instalment does not add further financial stress.
f. LTV: The LTV or the Loan to Value ratio is the maximum loan amount that we can approve towards the mortgaged property. This is calculated taking into account the current market value of the property.
g. Property valuation: SMFG Grihashakti will also determine the value of the property in terms of age of the property, construction quality, location, market value, etc. to determine the loan eligibility.