Every individual, at some point in his life, dreams of buying a home. In fact, many people are more attracted towards purchasing a home than a plot. But these days, due to the increasing cost of the land, purchasing a home has become pretty difficult. In such cases, you can opt for a Home Loan from a Non-Banking Financial Companies (NBFCs) and other lenders who are providing you with these services.

Before making any approach to these NBFCs and other lenders, there is an important online tool which most of these financial institutions provide and that is a Home Loan eligibility calculator. A Home Loan eligibility calculator is important in determining whether you are applicable for a Home Loan or not.


This online service, which is available on almost all the recognised financial service provider’s website, helps you to understand about your chances of availing a Home Loan. No individual would not like their Home Loan application getting rejected. It puts severe dents in achieving your dream home. Furthermore, a rejection of Home Loan will demotivate you in the pursuit of a dream home. Thus, usage of a Home Loan eligibility calculator provides you with fair details about your standings. Here are the things that you need to enter into the calculator:

  • Loan Amount: The first thing that a calculator asks you is the loan amount that you are looking to borrow. Based on the loan amount, you will be required to pay the EMIs. Remember that you must be careful while selecting the loan amount as even a difference of INR 2-3 lakhs can break your dreams of owning a home.
  • Tenor: The second important thing is the tenor that you ask for. Basically, what is the amount of time that you require to repay the loan? A lower tenor will require you to pay a higher EMI and vice-versa.
  • The rate of interest: The third thing that you need to give is the rate of interest that is applicable on your Home Loan. The rate of interest is the most important instrument in your Home Loan single-handedly.

Now, let us understand how the Home Loan EMI calculator works with the help of an example:

For instance, if you decide to borrow a Home Loan of INR 45 lakhs for a tenor of 20 years with the rate of interest of 12%, then you will have to pay a monthly EMI of INR 49,549. Similarly, if you decide to lower down the tenor to 10 years then you will have to pay a monthly EMI of INR 64,652. Based on this you should decide which tenor is most affordable to you.

An EMI calculator helps you to understand the Equated Monthly Instalments (EMIs) and based on that you can select what is the most suitable EMI for you. Most of the times, people end up choosing a wrong tenor and then find it hard to repay the monthly instalments. This would not help your case and it is essential that you are prepared for the same beforehand.

Along with checking the EMI calculator, it is essential that you check the eligibility calculator as well. For a financial institution to grant you a Home Loan, it is important that you check your eligibility first. These includes points such as: