How will you do its financing? One way that you have is that. Home Loan Eligibility Based On Salary.
If you have the full amount in your savings. Then you can withdraw the money from the investment or savings and can invest in the house. The second way is that you can withdraw some amount from the savings. And the rest will be paid by the loan.
And Home loans are a very good way to finance. Because the home loan is cheaper and its interest rates are minimal. So the maximum amount of loan is dependent on your salary. But there are many different factors on which your home loan eligibility is dependent.
So what is the formula for home loan eligibility? What are the factors on which your loan eligibility is dependent?
In this article, we will talk about these things in detail And along with this, I'll show you a home loan eligibility calculator. I will give you a demo. I've put options in the calculator. You'll know all the things like how much you can take out.
How much is the maximum amount you can spend to buy a house? How much will you pay as principal and interest over 20 years, 30 years? How much ever you take out a loan.
First, we will understand how loan eligibility is calculated? What is the exact formula for that? But before that, we will understand the logic. That's what logic does the bank have.
Whenever it calculates home loan eligibility. So assume that your income is "I", let's say it is 50,000 Rs per month. Then your home loan eligibility is dependent on this. So the bank says that “You will cover 50 % of your expenses with your income And with the remaining 50%, you can do savings”.
Because you will need 50% for your household expenses. And the 50% that you are saving, you can deposit in your EMI. So you can pay EMI with a maximum of 50% of your monthly income. According to that, only your home loan eligibility is calculated.
Now we will see its formula. The formula for a home loan eligibility is Your monthly fixed income×50%. As I have explained to you that this 50% portion, You first calculated its 50% Out of that if you are paying another EMI.
Assume you have your personal loan, car loan, education loan, you are paying EMI for that. You will subtract that from this. And then the amount will be divided by per lac EMI.
How is this per lac EMI calculated?
Generally, if there is a banker. Whoever is giving you a home loan. He has an EMI chart. It looks somewhat like this. He has that for every year for as many years as you want. He has a chart for per lac EMI. So that you'll know how much EMI you will get for a loan of Rs 1 lac.
Assuming the interest rate is 10.5%. So your per lac EMI will be 5 years, 10 years, 15 years, 20 years, 25, and 30 years. I have given you the chart. This EMI is given in the chart. But I have made an EMI calculator for this. It is quite detailed.
