Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.
17 JUNE, 2022
Just like you check the weather of the city you are travelling to so that you can be prepared in terms of the clothes you pack and the things you plan on your itinerary, checking your home loan eligibility before you apply for a home loan is crucial. Your home loan eligibility determines the amount of home loan you are eligible for and knowing this can help you in several important ways. First, it can reduce the chances of your home loan application being rejected. Second, it can help you fix your homebuying budget and narrow down your home choices. But how do you calculate your home loan eligibility? Instead of figuring it out manually or taking a guess, you can simply use Kotak’s online housing loan eligibility calculator. Let’s look at how.
Using Kotak’s online housing loan eligibility calculator
Here are the details you need to enter when using Kotak’s home loan eligibility calculator and how these factors assess your eligibility:
1. Type of employment
You need to enter whether you are a salaried individual or a self-employed individual. Your type of employment matters because it helps assess your repayment capacity and income stability.
2. Your monthly income
This information too helps the lender assess your repayment capacity. If you are a salaried individual, you need to enter your monthly in-hand salary. As a self-employed individual, you need to enter your total monthly income.
3. Your existing debt obligations
If you currently have Equated Monthly Instalments (EMIs) that you are paying for any other loans, you need to enter that amount. Your total existing debt obligation helps determine how much home loan EMI will you be able to manage vis-à-vis your income.
4. Preferred loan tenure
A long home loan tenure may enhance your home loan eligibility because it would reduce your EMI amount, making it less likely for you to default on your dues. However, a longer home loan tenure also means higher interest outgo. So, you need to give this some consideration based on your overall financial profile.
5. Estimated interest rate
Finally, you need to enter the estimated interest rate. For this, you can enter the current minimum home loan interest rate. But it’s important to remember that this is only an estimate. The actual home loan interest rate that you will get approved for can be higher.
By using Kotak’s online housing loan eligibility calculator, you will get the estimated home loan amount that you are eligible for. This number can guide you when looking for homes as well as when you apply for a home loan. Along with this, you should also make use of Kotak’s housing loan EMI calculator. The housing loan EMI calculator will give you an estimate of your monthly debt obligation which can allow you to undertake better financial planning and build a solid repayment plan
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