All About Your Loan Eligibility

Updated on: 18 Jan 2024 // 3 min read // Home Loans
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Buying a home you could call your own is nothing less than a dream come true.

Opting for a Home Loan seems to be your best bet. In this case, you might often catch yourself, asking questions like – Am I eligible for Home Loan or what is my Home Loan Eligibility? Thankfully, you need not worry anymore. Owing to the easy availability of information regarding the Home Loan, as well as accessibility to modern day tools such as EMI calculator, gauging your Home Loan eligibility, and other related aspects have become more accessible than ever before.

Considering that a Home Loan often involves anywhere between 120 to 360 EMIs, along with a hefty principal amount, it can often be quite cumbersome to calculate the amount that would go out towards each equated monthly instalment (EMI).

It is for this reason that MyMoneyMantra has introduced an efficient EMI Calculator that will help you gauge your EMI with astounding ease. All you need to do is enter the details such as your expected loan amount, the estimated rate of interest as well as the number of months in which you wish to repay the loan. That being done, the calculator will help you with the expected EMI, along with your total interest outgo over the entire tenure.

As a rule of thumb, your total EMI towards the repayment of the Home Loan should not exceed 40% of your total household income. If the calculator indicates that the EMI is higher than 40% of your revenues, then you may not be considered eligible. In this case, you should either increase your tenure or decrease the required loan amount to such an extent that your EMI is finally 40% or less of your monthly income. This can largely help you get the much-desired approval on your Home Loan application.

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Thanks to this simple yet efficient tool, you can enjoy the unprecedented ease in numerous aspects. These include:

1. Quick Estimation of the Loan Amount

While looking for a home, it can be quite tempting to fall for a property which is beyond your means. Thanks to the online EMI calculator offered by MyMoneyMantra, you can understand what should be the ideal loan mount for you, such that you can enjoy an admirable quality of life while repaying the loan.

2. Hassle-Free Process

A manual calculation of EMI can be genuinely time-consuming, and in some cases even cumbersome. Moreover, such estimates are always prone to errors. The online EMI calculator makes it exceedingly convenient to do this calculation, within a matter of a few seconds.

3. Accurate Calculations

One of the most compelling aspects of calculating your Home Loan eligibility with the EMI calculator is that you can always rest assured of getting actual results, which can be conveniently used to know the appropriate Home Loan amount as well as the apt tenure for the loan.

4. Easy Comparison

Sometimes, due to minute differences in distinct Home Loan offers, it can become a little daunting for you to make the final call. In such instances, the EMI calculator can help you look at the larger picture. The calculator offers a pie-chart which tells you the chunk of interest that you will be paying during your tenure, as against the principal amount. Depending on the results for various loan offers, you can pick the one that best suits your financial planning and budget.

5. Free to Use

In the present day world dominated by high prices, MyMoneyMantra’s free online calculator comes as a breath of fresh air. No matter how many loans offers you wish to check, or how many times you adjust your loan amount or tenure, you can do it all, time and again, completely free of cost!

Now that you know how and why it is incredibly easy to know and calculate your Home Loan eligibility, so wait no more, before you check the same, and apply for the suggested Home Loan amount at the earliest possible!