1. What is Home Loan Eligibility?

The home loan eligibility calculator determines the maximum loan amount (principal) you can borrow based on your affordable monthly payment, interest rate, and loan term. This follows BOB's (Bank of Baroda) standard calculation method.

2. How Does the Calculator Work?

The calculator uses the standard loan formula:

Where:

• \( P \) — Maximum loan amount (principal)
• \( PMT \) — Affordable monthly payment
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Total number of payments (term in years × 12)

Explanation: The equation calculates the present value of an annuity (the loan amount) based on regular payments at a given interest rate over a specified period.

3. Importance of Loan Eligibility Calculation

Details: Knowing your maximum loan eligibility helps in financial planning, property selection, and ensures you don't overextend your finances when purchasing a home.

4. Using the Calculator

Tips: Enter your comfortable monthly payment in INR, the annual interest rate in percentage, and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What factors affect home loan eligibility?
A: Besides the calculation shown, banks also consider your income, credit score, existing debts, property value, and employment stability.

Q2: Is this calculation specific to BOB credit card holders?
A: No, this is a general home loan eligibility calculator following standard banking formulas, not specific to credit card debt.

Q3: How accurate is this calculator?
A: It provides a theoretical maximum based on the formula, but actual bank approvals may differ based on additional factors.

Q4: Should I borrow the maximum eligible amount?
A: Not necessarily. Consider future expenses, interest costs, and potential income changes before deciding your loan amount.

Q5: Does this include processing fees and other charges?
A: No, this calculates only the principal amount. Additional fees would be extra and vary by bank.