Tuesday, October 3, 2023
Night Innovations
NEWSLETTER
No Result
View All Result
  • Business
    Real Estate Investment in Turkey

    Spotlight on Downtown Memphis: Revitalization and Real Estate

    B2B BUYERS IN 2023

    WHAT CONCERNS MOST TO B2B BUYERS IN 2023

    LОАN TО ADULT CHILDREN

    Hоw Tо Use Inсоmе Splitting By Making A Lоаn Tо Adult Children

    Ways To Expand Your Network

    5 Ways To Expand Your Network As An Entrepreneur

    SEO reseller companies

    All you need to know about SEO reseller companies

    Labour Hire Agency In NSW

    Reasons To Choose Construction Labours From Labour Hire Agency In NSW, Australia

  • LifeStyle
    • All
    • Fashion
    • Food
    • Health
    • Travel
    Best Cute Dog Tags

    4 Things to Focus on Before Starting a Pet Boarding Business

    Places In Taos

    Must See Places In Taos, NM

    How to keep your sneakers clean

    How to keep your sneakers clean and spotless?

    Invest In A Fabric

    3 Things You Need To Know Before You Invest In A Fabric

    Tutoring help your child

    How does tutoring help your child?

    Filing Cabinet

    Filing Cabinet: Get Everything Arranged and Sorted

  • Tech
    Business Reputation Management (2)

    7 Qualities to Seek in a Web Designer

    Cell Phone Repair Store

    A Cell Phone Repair Store in Beddington Explaining Camera Issues

    Limiting Screen Time for Kids

    The Importance of Limiting Screen Time for Kids: How Mobile Repair Shops Can Help?

    The impact of cloud hosting on website performance

    The impact of cloud hosting on website performance

    Cell Phone Repair Store

    5 Misconceptions Cell Phone Repair Store in Airdrie Highlights

    cell phone repair

    How to find good cell phone repair in Idaho?

    Apple Phone Repair Store

    How to Maintain an iPhone? 10 Tips by Apple Phone Repair Store

    Laser Rust Removal

    How to Use Laser Rust Removal for a Perfect Finish

    Cell phone repair store

    10 best ways to speed up your iPad according to ocean city cell phone repair store

  • Cryptocurrency
    Top 3 Benefits of Cryptocurrency

    Top 3 Benefits of Cryptocurrency

    KuCoin

    KuCoin most recent prices for cryptocurrencies

    Cryptocurrency

    Four Ways to Buy Cryptocurrency

    Exploring the Features of Ripple in Detail

    Exploring the Features of Ripple in Detail

    What is the Safest Way to Invest in Bitcoin?

    Crypto: What is The Safest Ways to Invest

    What is the Safest Way to Invest in Bitcoin?

    What is the Safest Way to Invest in Bitcoin?

    4 Best Ways to Make Money in the Cryptocurrency Industry

    4 Best Ways to Make Money in the Cryptocurrency Industry

    What is ecash XEC Token Analysis and price prediction

    How do I Buy Bitcoin

    How Do I Buy Bitcoin – 5 Helpful Steps For Crypto Investing

  • Entertainment
    • All
    • Games
    escapology Kissimmee

    Teamwork Triumph: How to Conquer Escape Rooms with Friends

    TikTok

    How to download TikTok videos without watermarks in 2022?

    Global SaaS Security Market Share : 2022-2028

    Global SaaS Security Market Share : 2022-2028

    blaze-fielding-streets-of-rage-4

    Streets of Rage 4 – Blaze Fielding

    Hollywood Classic Movies

    6 Hollywood Classic Movies for Sci-Fi Genre Fans

    How to build a castle with a fort building kit?

    How to build a castle with a fort building kit?

    The Ascent Gameplay

    The Ascent-Best Cyberpunk Game

    thoptv-pro

    ThopTV Pro App (Android Streaming) – Download

    Voot for PC,Windows 10,8,8.1,7,Mac,Laptop & Desktop

    Voot for PC,Windows 10,8,8.1,7,Mac,Laptop & Desktop

  • Home Improvement
    Best space-saving furniture

    Best space-saving furniture for a clutter-free home

    Home Improvements

    What Are the Top Home Improvements for Increasing Value?

    Overlooked

    6 Home Essentials That Are Often Overlooked

    construct your kitchen

    How to construct your kitchen

    Do you require real estate agent to sell your home?

    Do you require real estate agent to sell your home?

    Mattress Cleaning

    Common Myths About Mattress Cleaning

    Security Systems

    What are Physical Office Security System for Data Protection

    best-shark-canister

    Best Shark Canister Vacuums You Should Buy

    Laminate

    Vinyl vs Laminate flooring: Major Differences

  • Automotive
    Keep Car Tires in Good Condition

     How Are Car Tyres Maintained in Good Condition?

    All-New Honda BR-V

    All-New Honda BR-V is all set for launch on Philippines shores.

    Car's Mileage

    10 Tips To Improve Your Car’s Mileage

    Purchasing a car

    Top 6 Tips to Follow While Purchasing a Used Car

    Car Rental in Dubai

    Top Qualities that Align with a Good Car

    Chevy Engine

    5 Tips to get the most Effective Used Chevy Engine

    electric unicycle

    What is an electric unicycle?

    Automotive Thermal System Market Size, Share Report 2021-26

    Automotive Thermal System Market Size, Share Report 2021-26

    Logistics Robots Market Size, Share Global Report 2021-2026

    Logistics Robots Market Size, Share Global Report 2021-2026

  • Business
    Real Estate Investment in Turkey

    Spotlight on Downtown Memphis: Revitalization and Real Estate

    B2B BUYERS IN 2023

    WHAT CONCERNS MOST TO B2B BUYERS IN 2023

    LОАN TО ADULT CHILDREN

    Hоw Tо Use Inсоmе Splitting By Making A Lоаn Tо Adult Children

    Ways To Expand Your Network

    5 Ways To Expand Your Network As An Entrepreneur

    SEO reseller companies

    All you need to know about SEO reseller companies

    Labour Hire Agency In NSW

    Reasons To Choose Construction Labours From Labour Hire Agency In NSW, Australia

  • LifeStyle
    • All
    • Fashion
    • Food
    • Health
    • Travel
    Best Cute Dog Tags

    4 Things to Focus on Before Starting a Pet Boarding Business

    Places In Taos

    Must See Places In Taos, NM

    How to keep your sneakers clean

    How to keep your sneakers clean and spotless?

    Invest In A Fabric

    3 Things You Need To Know Before You Invest In A Fabric

    Tutoring help your child

    How does tutoring help your child?

    Filing Cabinet

    Filing Cabinet: Get Everything Arranged and Sorted

  • Tech
    Business Reputation Management (2)

    7 Qualities to Seek in a Web Designer

    Cell Phone Repair Store

    A Cell Phone Repair Store in Beddington Explaining Camera Issues

    Limiting Screen Time for Kids

    The Importance of Limiting Screen Time for Kids: How Mobile Repair Shops Can Help?

    The impact of cloud hosting on website performance

    The impact of cloud hosting on website performance

    Cell Phone Repair Store

    5 Misconceptions Cell Phone Repair Store in Airdrie Highlights

    cell phone repair

    How to find good cell phone repair in Idaho?

    Apple Phone Repair Store

    How to Maintain an iPhone? 10 Tips by Apple Phone Repair Store

    Laser Rust Removal

    How to Use Laser Rust Removal for a Perfect Finish

    Cell phone repair store

    10 best ways to speed up your iPad according to ocean city cell phone repair store

  • Cryptocurrency
    Top 3 Benefits of Cryptocurrency

    Top 3 Benefits of Cryptocurrency

    KuCoin

    KuCoin most recent prices for cryptocurrencies

    Cryptocurrency

    Four Ways to Buy Cryptocurrency

    Exploring the Features of Ripple in Detail

    Exploring the Features of Ripple in Detail

    What is the Safest Way to Invest in Bitcoin?

    Crypto: What is The Safest Ways to Invest

    What is the Safest Way to Invest in Bitcoin?

    What is the Safest Way to Invest in Bitcoin?

    4 Best Ways to Make Money in the Cryptocurrency Industry

    4 Best Ways to Make Money in the Cryptocurrency Industry

    What is ecash XEC Token Analysis and price prediction

    How do I Buy Bitcoin

    How Do I Buy Bitcoin – 5 Helpful Steps For Crypto Investing

  • Entertainment
    • All
    • Games
    escapology Kissimmee

    Teamwork Triumph: How to Conquer Escape Rooms with Friends

    TikTok

    How to download TikTok videos without watermarks in 2022?

    Global SaaS Security Market Share : 2022-2028

    Global SaaS Security Market Share : 2022-2028

    blaze-fielding-streets-of-rage-4

    Streets of Rage 4 – Blaze Fielding

    Hollywood Classic Movies

    6 Hollywood Classic Movies for Sci-Fi Genre Fans

    How to build a castle with a fort building kit?

    How to build a castle with a fort building kit?

    The Ascent Gameplay

    The Ascent-Best Cyberpunk Game

    thoptv-pro

    ThopTV Pro App (Android Streaming) – Download

    Voot for PC,Windows 10,8,8.1,7,Mac,Laptop & Desktop

    Voot for PC,Windows 10,8,8.1,7,Mac,Laptop & Desktop

  • Home Improvement
    Best space-saving furniture

    Best space-saving furniture for a clutter-free home

    Home Improvements

    What Are the Top Home Improvements for Increasing Value?

    Overlooked

    6 Home Essentials That Are Often Overlooked

    construct your kitchen

    How to construct your kitchen

    Do you require real estate agent to sell your home?

    Do you require real estate agent to sell your home?

    Mattress Cleaning

    Common Myths About Mattress Cleaning

    Security Systems

    What are Physical Office Security System for Data Protection

    best-shark-canister

    Best Shark Canister Vacuums You Should Buy

    Laminate

    Vinyl vs Laminate flooring: Major Differences

  • Automotive
    Keep Car Tires in Good Condition

     How Are Car Tyres Maintained in Good Condition?

    All-New Honda BR-V

    All-New Honda BR-V is all set for launch on Philippines shores.

    Car's Mileage

    10 Tips To Improve Your Car’s Mileage

    Purchasing a car

    Top 6 Tips to Follow While Purchasing a Used Car

    Car Rental in Dubai

    Top Qualities that Align with a Good Car

    Chevy Engine

    5 Tips to get the most Effective Used Chevy Engine

    electric unicycle

    What is an electric unicycle?

    Automotive Thermal System Market Size, Share Report 2021-26

    Automotive Thermal System Market Size, Share Report 2021-26

    Logistics Robots Market Size, Share Global Report 2021-2026

    Logistics Robots Market Size, Share Global Report 2021-2026

No Result
View All Result
Night Innovations
No Result
View All Result

How Home Loan Eligibility is Calculated on your Salary?

Maria James by Maria James
April 19, 2022
in Business
0
Home Business

Home purchasing is an expensive affair, and we cannot wholly rely on our savings to buy a new home. Often, we need to take a home loan to meet the need of buying a home. To determine home loan eligibility, lenders mainly focus on two main determinants of the borrower: monthly income and repayment capacity. Monthly salary is an important component for salaried individuals and it majorly dictates their home loan eligibility.

RELATED POST

Spotlight on Downtown Memphis: Revitalization and Real Estate

WHAT CONCERNS MOST TO B2B BUYERS IN 2023

The monthly salary or gross salary is composed of basic salary and other allowances. Other allowances comprise house rent allowance, conveyance allowance, leave travel allowance, medical allowance, and books and periodicals allowance. Gross salary is also known as CTC (cost-to-company). However, gross salary is not drawn by the salaried individuals, rather it is the net monthly income i.e., take-home salary or in-hand salary. The net income drawn is calculated after deducting the provident fund, gratuity, and other deductions based on company policies. The net monthly salary is evaluated for home loan eligibility.

Few quantitative factors on which the home loan eligibility depends include:

  1. Monthly income: The net income that you draw every month determines your home loan eligibility. A higher monthly income will help to avail a home loan.
  2. Interest Rate: A higher interest rate will increase the home loan eligibility and vice versa.
  3. Loan Tenor: Loan tenor plays an important role in regulating home loan eligibility.
  4. Loan-to-value (LTV) ratio: Loan-to-value ratio allows financial institutions and other lenders to examine the risk involved in extending the loan before approving the loan. For example, if the property value is Rs.50 lakh, then the lenders will provide a loan of 80% of the property value, i.e., Rs.40 lakh.
  5. Other EMIs: Lenders consider other financial obligations of the borrower, such as other payable EMIs, while determining home loan eligibility.

How to Calculate Home Loan Eligibility?

Your net income from your employer determines your home loan eligibility. As a rule of thumb, salaried individuals are entitled to avail of a home loan up to 60 times their net income monthly salary. For example, if you are earning a net income of Rs.50,000 per month, then you are eligible to draw a home loan of up to Rs.30 lakhs approximately.

Generally, it is assumed that 50 per cent of your net income will cover your monthly expenses including medical and other miscellaneous expenses. Then in such situations, the home loan eligibility can be calculated using the formula:

Home loan eligibility (in lakhs) =  (monthly fixed income ×50%)- other EMIs

Per lac EMI

 

Here, monthly fixed income is the net income, other EMIs stands for additional expense of the borrower, and per lac EMI is the standard EMI charged by bank according to the loan tenor and lending rates of the bank.

For example, if rate of interest is assumed to be 10.5% then, per lac EMI will be Rs 2150 for a loan tenor of 5 years. Similarly, the table below explains the per lac EMI for different loan tenor.

Loan     Tenor

(in Years)

Per Lac EMI

(in Rs.)

5 2150
10 1350
15 1100
20 1000
25 945
30 915

 

Let’s assume that the applicant with a net income of Rs.50,000 applies for a loan tenor of 20 years at an interest rate of 10.5%. Assuming that s/he has no other financial obligation or EMIs to pay, using the home loan eligibility formula and the chart above for per lac EMI, the applicant will be eligible for a home loan eligibility of Rs.25 lakh.

Let’s take another example where the net income is Rs.50,000, the interest rate is 10.5%, loan tenor is again 20 years, but the applicant has another EMI of Rs.5000 to pay as well. Using the above formula, the home loan eligibility will be Rs.20 lakh.

However, it is important to note that for higher net income, say over Rs.1 lakh, the expenses could be reduced by 35 to 40 per cent, where the net fixed income will be multiplied by 35% or 40%, and then calculated using the above formula.

Other than the quantitative factors, some qualitative factors also determine the home loan eligibility of salaried individuals, such as:

  1. Type of Property: Lenders immediately release loan amounts for ready-to-move homes, whereas the loan is released in multiple stages for under-construction property.
  2. Age of borrower: A young applicant can be entitled to higher home loan eligibility compared to older applicants, as the service years increase considerably.
  3. Credit History: A good credit score is essential for availing of a huge loan amount.
  4. Employer Category: Applicants associated with stable and ‘A’ category companies are considered for better interest rates by lenders.
  5. Work & Income Stability: Professions, such as doctors, CA, and IT professionals, are considered less risky and thus, have higher home loan eligibility.
ShareTweetPin

Related Posts

Real Estate Investment in Turkey
Business

Spotlight on Downtown Memphis: Revitalization and Real Estate

September 8, 2023
B2B BUYERS IN 2023
Business

WHAT CONCERNS MOST TO B2B BUYERS IN 2023

February 20, 2023
LОАN TО ADULT CHILDREN
Business

Hоw Tо Use Inсоmе Splitting By Making A Lоаn Tо Adult Children

January 23, 2023
Ways To Expand Your Network
Business

5 Ways To Expand Your Network As An Entrepreneur

November 21, 2022
SEO reseller companies
Business

All you need to know about SEO reseller companies

November 7, 2022
Labour Hire Agency In NSW
Business

Reasons To Choose Construction Labours From Labour Hire Agency In NSW, Australia

November 7, 2022
Next Post
Space birthday

Space birthday games: 11 simple and fun ideas

  • xxv 2020 new year

    Xxv 2020 New Year 2021 – 2022

    0 shares
    Share 0 Tweet 0
  • Xnxnxnxn Cube Algorithms Pdf Download

    0 shares
    Share 0 Tweet 0
  • Wwwxnx M Commerce Examples of Resumes Pdf Download

    0 shares
    Share 0 Tweet 0
  • Download Epson L380 Driver Printer & Scanner

    0 shares
    Share 0 Tweet 0
  • Xxneoxx Wolf Gaming Pc Xxyyxx Mix 2018 امریکایی

    1 shares
    Share 0 Tweet 0
Facebook Twitter Pinterest Youtube

ABOUT US

Night Innovations is a portal of refreshing informational blogs that keep you updated about the current affairs & trends going on worldwide.

Follow us

RECENT NEWS

  • Trusted by Locals: Why iPhone Repair Services In Kettering and Smartwatch Services Stand Out
  • Teamwork Triumph: How to Conquer Escape Rooms with Friends
  • Spotlight on Downtown Memphis: Revitalization and Real Estate
  • 7 Qualities to Seek in a Web Designer

CATEGORIES

  • Automotive
  • Business
  • Celebrity
  • Cryptocurrency
  • Education
  • Entertainment
  • Fashion
  • Featured
  • Finance
  • Food
  • Games
  • General
  • Health
  • Home Improvement
  • LifeStyle
  • Tech
  • Travel
  • Uncategorized

© Night Innovations Copyright 2023. All Rights Reserved.

No Result
View All Result
  • Business
  • LifeStyle
  • Tech
  • Cryptocurrency
  • Entertainment
  • Home Improvement
  • Automotive

© Night Innovations Copyright 2023. All Rights Reserved.