Loan Amount (in Lacs)
₹ 1,55,455.03
What is home loan eligibility?
Home Loans play an important role in assisting individuals to buy their dream home. However, most banks have certain eligibility criteria in place to provide Home Loans to individuals. This is because Home Loans are often big-ticket, with a longer tenure.
Home Loan eligibility is the ability or capacity of an individual to get a Home Loan from a bank or financial institution.
This eligibility is decided based on various factors, including age, income, type of employment, and credit profile. However, these factors and criteria may change depending on the institution you decide to apply to.
Checking the eligibility criteria of the lending institution is important to reduce your chances of loan rejection, which may negatively impact your credit score.
Therefore, it is best to check out the Home Loan eligibility criteria for Axis Bank Home Loan to make your journey smoother.
Let us understand the concept with an example:
Imagine two friends Kunal and Gaurav, decide to apply for a Home Loan of ₹10 lakhs. Kunal earns ₹1 lakh a month at the age of 30, while Gaurav, 35, earns ₹70,000. In this case, Kunal is more likely to get his loan application approved at a lower rate because he has both age and income factors on his side.
How is Home Loan eligibility calculated?
Certain factors determine the Home Loan eligibility of an individual:
- Age of the applicant
- Number of dependents
- Employment type
- Income
- Assets and existing debt obligations
- Credit score and history
However, it may be hard to determine the exact impact of these factors. Also, the complex nature of the Home Loan calculation formula may make it difficult to accurately calculate the eligibility.
This is why Axis Bank offers an online Home Loan Eligibility Calculator. It helps you analyse your eligibility for a Home Loan. Understanding and estimating your eligibility for Axis Bank Home Loan is just a matter of a few minutes now.
Home Loan Eligibility Criteria
The following individuals can apply for Axis Bank Home Loans.
| Salaried individuals | Professionals | Self-employed | |
|---|---|---|---|
| Who can apply? | Individuals employed in permanent service in the Government or reputed companies | Doctors, engineers, dentists, architects, chartered accountants, cost accountants, company secretaries, and management consultants. | Any individual filing income tax returns can apply |
| Age limit | Minimum age: Above 21 years at the time of loan commencement Maximum age: Up to 60 years or superannuation, whichever is earlier at the time of loan maturity. | Minimum age: Above 21 years at the time of loan commencement Maximum age: Up to 65 years or superannuation, whichever is earlier at the time of loan maturity. | Minimum age: Above 21 years at the time of loan commencement Maximum age: Up to 65 years or superannuation, whichever is earlier at the time of loan maturity. |
| Minimum loan amount | ₹3 lakh | ||
| Maximum loan amount | Up to ₹5 crore | ||
| Loan tenure | Up to 30 years | ||
| Floating Interest Rate | 8.75% - 9.15% | ||
| Fixed Interest Rate | 14% | ||
| Processing Fee | Up to 1% of the loan amount + GST (minimum ₹10,000) | ||
How to use the PPF calculator?
Using a PPF calculator is really simple. For calculating the maturity amount on a PPF calculator, you just need to enter details such as the contribution amount and frequency. Rate of interest is auto updated, and the tenure of the investment is 15 years.
Once all the details are entered, the PPF calculator does the math and provides you with the exact amount that you will receive on maturity, provided the interest rate doesn’t change and you continue to make investments as per the information you fed to the calculator. The calculator saves you time and the manual effort that goes into calculating the maturity amount using a PPF calculator.
How to increase Home Loan eligibility?
There are various ways to increase your Home Loan eligibility.
- Improve CIBIL score
The Credit Information Bureau (India) Limited is a 3-digit score between 300 to 900 that determines your credit history score. The closer you get to the score of 900, the better is your credit rating. This credit report is collected from various institutions such as government bodies, collection agencies, banks, and Credit Card companies.
Also, it takes about 18 to 36 months to obtain a satisfactory CIBIL score. - Clear existing loans
Having existing EMI payments can make you less credible for a Home Loan. Therefore, it is essential to clear out your existing loan payments before you apply for a loan from a financial institution. Clearing previous loans on time will boost your credit score, giving you an added advantage. - Select a joint Home Loan
Applying for a joint Home Loan may provide you with additional support in case of a default. Also, applying with someone else may give you a better chance of getting your loan accepted due to a stronger combined credit score. In some cases, women applicants may have added benefits as compared to male applicants. Consider estimating using a reliable joint Home Loan Eligibility Calculator to get a detailed analysis of your eligibility.
Apply for a Home Loan and calculate your eligibility
It is best to get an estimate of your current eligibility before applying for a home loan from an institution. While it is possible to get a rough idea through manual calculations, it is best to use an online Home Loan EMI Eligibility Calculator to get an exact estimate of your eligibility. The major factors that determine the Home Loan eligibility of an individual include salary and age. Let us learn about the role of these factors in detail.
Apply for a Home Loan and calculate your eligibility
It is best to get an estimate of your current eligibility before applying for a home loan from an institution. While it is possible to get a rough idea through manual calculations, it is best to use an online Home Loan EMI Eligibility Calculator to get an exact estimate of your eligibility. The major factors that determine the Home Loan eligibility of an individual include salary and age. Let us learn about the role of these factors in detail.
Home Loan eligibility based on salary
Your salary determines your ability to pay a part of your monthly income without compromising on your basic needs. Therefore, it is an important factor in determining your Home Loan eligibility. Also, your employment type signifies the consistency and stability of your income. However, note that a higher salary does not always imply better chances of loan approval.
For instance, a person with a salary of ₹50,000 may have a higher chance of getting approved as compared to another person who earns ₹1 lakh a month if the latter person has existing EMIs or financial liabilities.
Home Loan eligibility based on age
Age is a crucial factor in determining the eligibility of an individual to borrow loans.
Most lending institutions have a minimum age criteria of 18 or higher for applying for a Home Loan.
Younger applicants often get accepted for longer tenure loans, which may result in lower monthly costs with a higher overall interest rate. Whereas older applicants can manage shorter tenure loans with bigger installments due to their financial stability.
It is important to note that the impact of age on your loan eligibility varies depending upon the lending institute.
How to check Home Loan eligibility?
The easiest and most accurate way to calculate your Home Loan eligibility is to use online calculators. Axis Bank Housing Loan Eligibility Calculator allows you to get an accurate estimate of your eligibility without getting caught in lengthy calculations.
You just need to add basic information such as income, expenses, debts, and credit scores to get the result within seconds. Also, the Axis Bank Home Loan Eligibility Calculator considers all the relevant factors according to Axis Bank’s criteria, increasing its accuracy. It is advised to evaluate your financial situation and obtain a credit report before applying for a Home Loan.
Frequently Asked Questions
A Home Loan Eligibility Calculator is an online tool that calculates the eligibility of an individual to get a Home Loan by accessing certain financial details. This tool facilitates getting an accurate estimate of the amount of loan you are eligible for.
Using the Axis Bank Home Loan Eligibility Calculator is pretty simple. Just enter your details like age, income, other EMIs, net monthly income, and interest rate. You will learn about your exact eligibility within seconds. This will help you determine if you qualify for your desired loan amount.
Various factors such as age, income, other debt liabilities, employment type, and credit score determine the Home Loan eligibility. The location and property details may also play a vital role in determining the rate of your Home Loan.
An individual’s salary is a major factor in determining their Home Loan eligibility. Your salary determines the amount you can pay through EMIs while meeting your monthly expenses. Most financial institutions allow anywhere between 30-60% of your monthly salary as EMI, which helps calculate your net loan amount.
A co-applicant is a person who applies jointly for a Home Loan with the primary borrower. He/she agrees to bear responsibility for loan repayment and ownership of the property.
A person’s total income determines the amount they can repay without compromising on their monthly expenses. Therefore, this is often a crucial factor in estimating Home Loan eligibility.
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