No matter how well you are equipped with the know-how of the banking and finance sector, you’re likely to display an inquisitive behavior while applying for a loan, especially home loan. In that case, if you are planning to apply for a home loan and you want to know the exact loan amount you can borrow, you must know there is no definite answer to this question. The loan amount varies as per the Home Loan eligibility, which is likely to change from one application to another. Also, there are a couple of other factors which are taken into account by the lender while determining the applicable loan amount. To start with:-
Gross monthly income: The first and the foremost factor the lender will consider is your gross monthly income. Your gross monthly income should be higher than the ‘minimum income eligibility criteria’ set by the lender.
Current EMI Obligations: The lender will also consider your current EMI obligations to evaluate your repayment capacity. Your current EMI obligations should not increase more than 43% of your net monthly salary.
Your financial liabilities and the number of dependents: Lastly, a lot depends on your current financial liabilities and the number of dependents you have in the family. The lender would want to make sure you can save just enough to pay the EMIs on time every month after managing all your liabilities.
Bottom line: To make the task of calculating the exact amount you can borrow easier, you can use the home loan eligibility calculator.