Finance

How to Calculate Home Loan Eligibility Within 5 Minutes?

Are you looking for a suitable home loan deal? If yes, it is a prudent idea to calculate your home loan EMI before availing the final offer. A home loan eligibility calculator is just the right tool that can help you with it.

A home loan calculator is an online tool designed for calculating your loan EMI. Based on a few details added by you regarding your home loan, the calculator can compute the exact EMI that you must bear.

Ways how a home loan eligibility calculator can help you:

A home loan eligibility calculator has numerous benefits attached. It is a handy tool that permits you to create a financial plan before you apply for a home loan.

Here’s how a home loan calculator can help you to understand your home loan eligibility:

  • Instant result

When planning for a home loan, you must avoid going wrongwith numbers. As manual calculation is prone to errors, you must consider using an online housing loan eligibility calculator. Such calculators always provide an instant result in seconds.

  • Accurate result

Using a pen and paper to compute your home loan EMI is a time-consuming process. However, with an online home loan calculator, you can perform complicated calculations with ease. Remember that you do not need to double check the calculations as such calculators always give an accurate result.

  • Ultimate planning

EMI calculators can safeguard you from financial crunches that may occur in the future. Knowing your EMI through the calculator beforehand can help you to plan your budget in an efficient manner.

  • Useful for loan management

Home loan lenders consider your repayment potential when evaluating your loan application. They consider lending if your monthly loan obligation including your new home loan is within 50% of your monthly salary. It is one of the important home loan eligibility criterions considered by the lenders.

Using a home loan calculator, you can understand better if your repayment obligation is under the 50% mark. In case it is not, you either can foreclose or prepay your existing loans to reduce your loan obligations. Also, you can choose to avail a lower LTV ratio or higher repayment tenure to reduce your thorough EMI obligation.

  • Compare various loan offers

You can take the help of a online home loan calculator to compare distinct loan deals that different lenders offer you. The outcome shows your overall borrowing cost together with home loan EMIs. Such calculations allow you to select an appropriate option according to your suitability and preference.

Bottom line

Once you are aware about your home loan EMI through the calculator, it is time to apply for the home loan with the most preferred lender. Once your home loan is approved and your loan amount is disbursed, always make sure to repay your EMI on time to maintain a strong credit score.

About the author

Louise King

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