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.