Here’s how you need to use a Housing Loan Emi Calculator

As an individual, it is crucial to plan ahead of the future. Financial planning is one such major aspect to be considered while looking out for financial investments and expenses. If you intend to buy a home, looking for the right interest rates and EMI options is a must. Online policy comparers offer a quick and easy Home loan EMI Calculator that helps individual understand their eligibility before applying at any loan or finance institution.

Here’s our quick 6 step guide to attain financial security while carefully cross checking our quick and easy financial checklist stated below:

1. Monthly Expenses:

Having to buy a home in India calls for an extreme financial stretch considering the steady rise of properties in the region. As an individual, it is important to have a fixed amount saved for future financial deficits. One needs to take care of their monthly expenses by minimizing monthly household expenses by 25-40% the least when they apply for a house loan. Click here to know: How to apply for home loans in India.

2. Understanding the concept of loan amount:

Currently, banks offer 80% of property value as a loan amount. It is important to consider that the rest 20% of the property value relies on us individually. This amount cannot be raised through loan or debts. Most financial advisors suggest a contribution of 40% down payment from savings to reduce the financial burden. Stamp Duty and other registration costs accounts up to 5 - 10 % of total cost for house loans.

3. Existing loans and debts:

The liability of home loan is magnanimous compared to another kind of loan amount. Hence, it is advised to clear off all other existing debts and loans including personal loan, education loan, car loan (as applicable). This not only helps you take financial decisions better for your home loans but also improves your CIBIL Score. Check your eligibility stats with easy and quick online tools like home loan emi calculator to understand the risk factors associated with applying for a home loan.

4. A steady source of income:

Financial planning can go haywire if there is a constant absence of regular income. If you work for a sector hit by recession recently, it is best advised to postpone any kind of financial purchase that requires a steady job or job stability.

5. Financial Reserve:

In an unfortunate event, where you need to be able to cash in funds, it is best advised to have an emergency fund with minimum 6 months of household expense handy. These deposits can be lucrative for short term investments like Bank FDs, Mutual Funds and others of similar liking.

These 5 steps are the most basic yet effective ways to plan your finances wisely while carefully choosing the right house loan online. Remember to look out for housing loan EMI calculator prior to applying for the same.

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Home Loan Eligibility Criteria for Self Employed Applicant

Planning to buy a property? With several financial companies offering attractive home loan options, it is more convenient in realising your dreams to buy and own a property.

The home loan process has been made far simpler and accessible thanks to a number of provisions that are offered by most of these competent institutions. You can complete several formalities online without the hassle of wasting your time or spending extra money.

Even if you not well versed with the way this business works or are completely new to the process of home loans, internet makes it far easier and within your grasp to understand the nuances involved. The company websites provides an in-depth understanding of the services that are being provided. A feature called the home loan eligibility calculator will help you find out whether or not you are eligible to avail loan of a certain amount. It will calculate your EMI, give you an idea of tenure and basically several resources for you to complete your initial R&D. Other than this, you can find real reviews from people who have used services to so you get an idea whether or not to approach such company.

You can take help from financial advisors to understand the process and get assistance every step of the way.  Some of the eligibility criteria include your age, educational qualification, credit history, existing loans, and more. One of the important criteria is whether not you are a salaried or self-employed individual.

If you are a self-employed individual, the process may get a little tedious compared to salaried individuals. Some important things to keep in mind are these:

A detailed statement of the profit or loss you make needs to be submitted. This is one of the crucial steps.  In the case of a salaried candidate, bank statements are completely trusted which also makes the process far convenient.

IT verifications might prove to be stringent. The company may check your IT returns from the past two years or more. A good IT return will surely reflect and prove to be a good basis for approval.

The home loan eligibility may differ from one company to another. You need to be prepared for verifications and evaluations.

A good credit card score, a bigger bank balance will surely help you get the approval on a fast-track.  Make a thorough research, improve your credit score, try paying a higher down payment.