Finding the home of your dreams is one of the best things to happen to you. Even if you cannot afford to pay for the entire amount upfront, you can apply for an affordable home loan, which will help you procure your home.
When you have accumulated sufficient savings as a down payment and have decided on the property you want to purchase, the next step is to apply for a home loan. While applying for one, you must use one of the most important digital tools to help you make the right decision – the home loan eligibility calculator!
Home Loan Eligibility Calculator- A Brief
The home loan eligibility calculator is an important tool that helps you assess the loan amount that you are eligible for and an approximate monthly EMI amount. The eligibility calculator depends on several factors:
- Your Gross Monthly Income
- Loan Term
- Rate of Interest offered by the home loan provider
- Other EMIs that you are paying each month
- Credit History
- Credit Rating
- Age (current/retirement)
Benefits of Using a Home Loan Eligibility Calculator
Let us look at the best home loan in India a simple way in which a Home Loan Eligibility Calculator helps you get the best deal:
1. It Helps You Compare Different Loan Plans
Entering key details about loan amount, loan term, and the interest rate offered by the home loan provider, you can use various combinations and estimate the best option. Selecting the right provider does not entirely depend on the rate of interest. Several other factors must be considered like loan amount sanction, credit rating considered, loan terms, other fees and penalties, eligibility criteria, ease of application, etc.
2. It Helps You Plan Your Financial Needs
When you enter all important factors in the calculator, you get a fair idea of how much monthly EMI you need to pay, the approximate amount of home loan that can be sanctioned, and the interest charges you would need to pay throughout the repayment schedule. This means you can accumulate the required down payment amount or plan your future repayments accordingly. Thus, the calculator makes it easier for you to assess your short-term and long-term financial health.
Also Read: How to Use EMI Calculators for Mortgages and Home Loans?
3. It Is Easy And Convenient
This simple and easy tool is extremely user-friendly and convenient to operate. It gives you a heads-up as soon as you enter information like income, tenure, interest, and the total of other EMIs. This means that before you apply for a home loan, you can manage your financial stability. This easy-to-use digital tool helps you repair your current situation, so by the time you apply for a home loan, you get a more lucrative deal.
4. It Is Free And Relieves You From Manual Calculations
When applying for a home loan, sitting with a pen, paper, and manual calculator, it can take hours to figure out your home loan eligibility, a rough estimate of your monthly EMI, loan tenure, loan amount, or the repayment schedule.
It is a complex calculation, which this free-of-cost internet tool does within seconds. It helps you make faster decisions and quickly apply for a home loan. The better prepared you are, the quicker will be your loan application, approval, and disbursal process.
5. It Prepares You For The Loan
One of the key benefits of using a home loan calculator is that you get access to the best home loan in India. The digital tool prepares you to apply for the best deal. You can customize the parameters according to your current situation and work on them accordingly.
Also Read: How to Simplify Your Home Loan Transfer? Understand the Benefits of a Home Loan Interest Calculator
For example, the calculator shows you that your loan amount offered is low because of a low credit score. So, now you can be better prepared, wait for a couple of months, work on your financial situation, and improve your credit rating- this will help you get the best deal.
Using home loan EMI calculators has become an indispensable process today. With smartphones and the comfort of applying for loans online, such calculators are a blessing for homeowners who want to invest in building their own homes. So why wait? Utilize the calculator, compare different loans, and select the one that suits your requirements the best.