Home Loan Eligibility: How much loan will you get if you are already paying EMI and how much loan will you get if you are not paying any EMI? Let’s understand…
Home Loan Eligibility: If you have ever taken a home loan, then you must have felt that you did not get the loan as much as you wanted. But have you ever wondered why this happened? How do banks decide how much home loan one should get? Actually, how much loan you will get depends on how much EMI you are able to pay every month. Let’s understand this.
How much loan will be given, it is decided like this
1. How much earning
First the bank will see your income statement, which will include salary slips, tax returns and bank statements. He will calculate the total monthly earnings by adding your salary, interest earning, rental income and all other types of income coming from other sources. All this information is present in your bank statement itself.
2. How much savings
After this the bank will see how much you save from your monthly earnings. However, how much one saves depends on many factors. But a standard rule is that any person saves 30 percent of his monthly earnings and banks apply this rule to everyone. That is, assuming that your monthly income is 1 lakh rupees, then you will be saving 30 thousand rupees a month, the bank will also assume the same.
3. Any loan already
Before giving the loan, the bank also sees whether any of your loans are already running. If you are already taking a loan and paying its EMI, then the bank will deduct it from your total monthly savings. For example, there is a monthly savings of Rs 30,000, and you are paying EMI of Rs 10,000, then the total savings will now be considered as Rs 20,000.
4. This will be the calculation
If you are already paying EMI, then how much loan will you get and if you are not paying any EMI then how much loan will you get, understand this like this
Suppose your monthly income is Rs 1 lakh, want to take a loan for 20 years and interest rate is 7% then you will get home loan up to Rs 64.49 lakh, and your EMI will be Rs 50,000. Now if you have any EMI going on, say 10 thousand rupees, then you will get a home loan of Rs 51.59 lakhs, and your EMI will be Rs 40,000.
Although this is a rough idea, at least you will be able to understand the factors on which the loan amount depends. Rest of the banks have their own calculations. Some bank can give you more loan then some less.
