1. What is Home Loan Eligibility?

The Home Loan Eligibility Calculator estimates the maximum loan amount you can get based on your repayment capacity, interest rate, and loan tenure. It helps you plan your home purchase in India by banks like SBI, HDFC, etc.

2. How Does the Calculator Work?

The calculator uses the present value of annuity formula:

Where:

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

Explanation: The formula calculates how much loan you can get based on what you can afford to pay each month.

3. Importance of Loan Eligibility Calculation

Details: Knowing your eligibility helps in budgeting, property selection, and loan application process. It prevents disappointment from applying for unrealistic loan amounts.

4. Using the Calculator

Tips: Enter your comfortable EMI amount, current interest rates (e.g., SBI at 7.50% p.a.), and preferred loan tenure. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical interest rate for home loans in India?
A: As of 2023, rates range from 7.50% to 9.50% p.a. depending on the bank and your credit profile.

Q2: How does tenure affect loan eligibility?
A: Longer tenures increase eligibility but result in higher total interest payments.

Q3: What factors affect actual loan approval?
A: Banks also consider your income, credit score, existing debts, property value, and job stability.

Q4: What is the maximum tenure for home loans in India?
A: Most banks offer up to 30 years tenure, subject to age limits (typically up to 70 years at loan maturity).

Q5: How accurate is this calculator?
A: It gives a good estimate, but actual eligibility may vary based on bank policies and your financial profile.