What is My Home Loan Eligibility

What is My Home Loan Eligibility

Most companies give home loan up to a maximum of 85% of the cost (including the registration cost) of the house for a loan upto Rs.20 Lakhs & 80% of the cost above Rs. 20 lakhs. However in case of Plot purchase the maximum 75% of the cost of the loan is being financed. Balance 15%/20%/25%, sometimes called 'seed money', has to be invested by the loan applicant upfront from its own sources.

The amount, for which the applicant is eligible, is determined by the age, income, no. of dependents, monthly outgoing and repayment capacity. Normally the companies/Bank consider house loan upto 50% MLSC (Monthly Loan Servicing Charge i.e, EMI) of the net income of the applicant. However the MLSC can go high depending upon the Profile, age, No. of Dependents of the applicant.

Calculation of the Monthly net income is done for Individuals having salaried Income is the current salary he/she is getting in his bank accounts, other parks may be included depending upon the company/banks Policy at some discounted value. For the Individuals having business income is the average of 3 years ITR. Capital Gain & any other income of inconsistent in nature is not considered while income calculation of the applicant. Furthermore the current loan EMI the applicant is paying is also been deducted from the income while appering at the eligible income.

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