Eligibility Calculator

Home loan eligibility refers to the criteria a lender evaluates to determine whether an individual qualifies for a loan and how much they can borrow. These factors ensure that borrowers can repay the loan comfortably without financial strain and have a risk of defaulting on EMI. Using a home loan eligibility calculator, like the one offered by DMI Housing Finance, provides an instant and accurate estimate.

DMI Home Loan Eligibility Calculator is an online tool that helps individuals determine the amount of home loan they are eligible for based on their financial profile. It simplifies the complex process of assessing eligibility by factoring in key variables such as income, existing monthly EMIs, loan tenure, and interest rates.

How it works

The calculator requires users to input particular details, such as:

• Monthly Income: To evaluate repayment capacity.
• Loan Tenure: Longer tenures may lower EMIs, improving eligibility.
• Current EMIs or Debts: To account for existing liabilities.
• Interest Rate: Affects the total loan cost and eligibility.

Based on these inputs, the calculator instantly provides:

1. Loan Amount You Can Avail: The maximum loan amount based on your financial standing.
2. Estimated EMI: The monthly instalment amount is for the eligible home loan.

Here’s a simple process to calculate your home loan eligibility using the DMI Housing Finance Home Loan Eligibility Calculator:

1. Visit the Official Website
   • Go to the DMI Housing Finance website. Navigate to the ‘Calculators’ section in the menu bar and select ‘Eligibility Calculator’.
2. Enter Your Income and Existing EMI Details
   • Input your gross annual income in the designated field.
   • Provide the total monthly EMI amount under the ‘Existing EMI’ section.
3. Specify Loan Details
   • Fill in your preferred loan tenure (the duration you wish to repay the loan).
   • Input the annual rate of interest you are expecting for the loan.
4. Calculate Your Eligibility
   • Click the ‘Calculate’ button after entering all the required details.

Once you hit calculate, the tool will instantly display:

• The eligible loan amount you can borrow from DMI Housing Finance.
• The monthly EMI for the selected loan tenure and interest rate.

DMI Housing Finance has different eligibility criteria to make home loans accessible to the maximum number of applicants.

• Age: 21 to 65 years
• Eligible Employment Types: Private, Government, MNC, and contractual employees
• Minimum Monthly Income: Rs. 10,000
• Loan Tenure: Up to 30 years

• Age: 21 to 65 years
• Loan Amount: Up to Rs. 15 lakh
• Minimum Monthly Income: Rs. 10,000 onwards
• Loan Tenure: Up to 30 years

• Age: 21 to 75 years
• Eligible Applicants: Business professionals and non-professional individuals file ITR.
• Minimum Monthly Income: Rs. 10,000 onwards
• Loan Tenure: Up to 30 years
• Eligibility Based On: GST Turnover

• Age: 21 to 75 years
• Eligible Applicants: Business professionals and non-professionals do not file ITR.
• Minimum Monthly Income: Rs. 10,000 onwards
• Loan Tenure: Up to 30 years
• Eligibility Based On: Banking churning and average daily bank balance

Here’s a detailed look at the factors that determine home loan eligibility and how they impact the loan approval process:

1. Income: Your monthly income is critical in determining loan approval. A steady income demonstrates your ability to repay without financial strain. For salaried applicants, Lenders prefer 2-3 years of stable work experience. You must provide 3-6 months’ salary slips to show your income stability.

   For self-employed individuals, lenders evaluate based on business performance in the past 2-3 years. If you’re a self-employed applicant, you may have to provide financial documents like ITR, balance sheets, and profit & loss statements for the last two years.

2. Current Obligations: Your current obligations directly impact your repayment capacity. Lenders typically provide loans to applicants with a 50% to 55% EMI to NMI Ratio (including the EMI of the applied loan). The EMI to NMI ratio is the proportion of your net monthly income (NMI) that you spend on EMIs.

   If your monthly income is Rs.50,000, your monthly EMIs (including the new loan applied) should not be more than Rs.28000. Lending to applicants with a high EMI to NMI ratio increases the risk of EMI default in the future.

3. Tenure: Your loan tenure significantly determines your monthly EMI and the overall interest you will pay. Longer tenures make monthly EMIs more affordable, easing the burden on your immediate finances. However, they come with the trade-off of higher total interest costs over the life of the loan.

   On the other hand, shorter tenures help reduce the total interest paid but require higher EMI payments, which can put pressure on your monthly budget. Applicants facing difficulties in their loan application approval due to insufficient income can opt for a longer tenure to reduce their EMI amount, but they would end up paying more interest during the whole tenure.

4. Age: Lenders consider the applicant’s age as it directly impacts the loan tenure. Younger borrowers, such as those in their 30s, are typically eligible for longer tenures (e.g., up to 25 years), allowing them to spread repayments over an extended period. On the other hand, older applicants, such as those in their 50s, may only qualify for shorter tenures (e.g., 10 years) due to the reduced earning period ahead.
   • Longer Tenures: Offer smaller monthly EMIs but result in a higher overall interest payment.
   • Shorter Tenures: Reduce the total interest paid but require higher monthly EMIs.
5. Credit Score: A high credit score reflects a strong credit history, making you a reliable borrower in the eyes of lenders. Most lenders prefer applicants with credit scores above 750, increasing the likelihood of loan approval and allowing borrowers to secure lower interest rates and favourable terms. While the credit score is critical, especially for unsecured loans like personal loans, its role in the approval process for a secured loan like a home loan is less significant. However, maintaining a good credit score still improves your chances of getting a better deal on your home loan.

The DMI HFC Home Loan Eligibility Calculator is a smart tool that saves time and eliminates guesswork. Here’s how it helps:

• Instant Results: Get real-time estimates of how much loan you can get.
• Customisable: Adjust variables like income, tenure, and interest rate for personalised results.
• User-Friendly: A simple interface makes it easy for anyone to use.