Axis Bank Home Loan Eligibility Calculator

Planning to buy a home? A home loan can help you finance your dream, but checking your eligibility beforehand is essential With interest rates starting at just 8.75%, you can check your your eligibility using the Cleartax Axis Bank Home Loan Eligibility Calculator. This tool simplifies the process, helping you determine your chances of approval before applying. Keep reading to learn more about the Axis Bank Home Loan Eligibility Calculator, its benefits, and how to use it effectively.

What Is Axis Bank Home Loan Eligibility Calculator

The Axis Bank Home Loan Eligibility Calculator is a digital tool that helps assess your home loan eligibility based on specific financial factors. By considering age, income, credit score, employment status, and existing liabilities, Axis Bank determines your repayment capacity and provides you with your ideal home loan amount. 

How To Use Axis Bank Home Loan Eligibility Calculator?

To use the Cleartax Axis Bank home loan eligibility calculator, follow these simple steps:

• Enter your monthly income income.
• Enter the selected tenure for your home loan. 
• Enter the interest rate levied by Axis Bank. 
• The calculator will then display the total loan amount you are eligible for, as well as the monthly EMI payable.

How Is Axis Bank Home Loan Eligibility Calculated?

Axis Bank calculates home loan eligibility by considering various factors such as your monthly income, current age, credit score, any existing loan obligations, and the years remaining until your retirement. 

Let's assume that Mr Singh aims to purchase a home loan, with the following parameters in place: 

• Monthly Salary: Rs 1,00,000
• Tenure: 3 years (36 months)
• Miscellaneous Expenses: Rs 20,000
• Interest Rate: 10%

Step 1: Calculate the maximum EMI you can afford

Since banks allow you to use 50% of gross monthly income for loan EMI:

EMI=[100000×(50/100)]-20000 = 30000 

So, you can afford to pay ₹30,000 per month as EMI.

Step 2: Input values in the formula

The loan eligibility formula is:

P = EMI x [(1+r)(^n) - 1]
            r x (1+r)^n

Where:

• P = Loan amount (we want to find this)
• EMI = ₹30,000 (from Step 1)
• r = Monthly interest rate = 10% per year → (10/12) x (1/100) = 0.00833
• n = Loan tenure in months = 3 years → 3 x 12 = 36 months

Adding these values to the formula, 

P = 30000 x [(1+0.00833)(^36) - 1]
        0.00833 x (1+0.00833)^36

P=  Rs. 9,29,737.07

Therefore, the final loan amount Mr Roy is eligible for is Rs. 9,29,737.07

Axis Bank Home Loan Eligibility Criteria

The following mentions the eligibility criteria for availing a home loan from Axis Bank:

Axis Bank Home Loan Eligibility For Salaried Individuals

An individual's monthly salary is a key factor in determining their home loan eligibility. Axis Bank assesses various criteria, including credit score, age, and income, to determine loan approval: 

• Category: Individuals employed permanently in any government sector or well-recognized companies
• Age Limit: The minimum age limit is above 21 years during the beginning of loan application while the maximum age is up to 60 years
• Minimum Loan Amount: Rs. 3 Lakh
• Maximum Loan Amount: Up to Rs. 5 Crore
• Tenure of Loan: Up to 30 years
• Floating Rates of Interest: 8.75% - 9.15%
• Fixed Rates of Interest: 14%
• Processing Fees: Up to 1% of the loan amount including GST (minimum of Rs. 10,000)

Axis Bank Home Loan Eligibility for Self-Employed

When it comes to self-employed individuals checking eligibility, any single individual filing income tax returns can apply for the same. The following criteria are however mandatory to follow for self-employed:

• Minimum Age: Above 21 years during opting for a loan
• Maximum Age: Up to 65 years during the maturity of the loan
• Minimum Loan Amount: Rs. 3 Lakh
• Maximum Loan Amount: Up to Rs. 5 Crore
• Tenure of Loan: Up to 30 years
• Floating Rate of Interest: 8.75% - 9.15%
• Fixed Rate of Interest: 14%
• Processing Fees: Up to 1% of the loan amount + GST applicable for a minimum of Rs. 10,000

Axis Bank Home Loan Eligibility Based on Age

Age is another important factor for determining eligibility for your Home Loan application. However, the impact varies greatly from one lender to another. Axis Bank requires all applicants to be over 21 years  and under 65 years or the age of retirement by the loan's end. 

Axis Bank Home Loan Eligibility Based on Value of Property

Axis Bank’s also grants home loans against property, with amounts typically ranging from 50% to 75% of the property's market value. Here's a breakdown of how Axis Bank determines home loan eligibility based on property value:

• Loan to Value (LTV) Ratio: Axis Bank uses the LTV ratio to determine the maximum loan amount you can get, which is the percentage of the property's value that the bank is willing to lend. 
• LTV and Loan Amounts:
• For loan amounts up to ₹30 lakh, Axis Bank offers up to 90% of the property's value. 
• For loan amounts above ₹30 lakh and up to ₹75 lakh, the LTV is 80%.

Axis Bank Home Loan Eligibility Based on Credit Score

Checking the Home Loan eligibility considering credit score is of utmost importance. To avail of the Home Loans with Axis Bank, maintaining a credit score above 750 is a must. If the credit score is too low, lenders hesitate to provide Home Loans as it puts the loan sanctioning process at risk. However, a high credit score improves the chances of qualifying for a high loan amount. 

Factors Affecting Axis Bank Home Loan Eligibility

There are key factors that affect the Axis Bank Home Loan eligibility of individual investors. Let us look into those factors in detail below:

• Income: Your monthly income indicates your financial stability and plays an important role in determining your eligibility. With a high and stable income, your chances of loan approval increases.
• Age: Your age during loan application impacts the loan eligibility and tenure. Typically, if you opt for a home loan at a younger age, the repayment period will be longer. 
• Credit Score: A good CIBIL score reflects the creditworthiness of an individual borrower. Axis Bank looks into your credit history to gain a thorough understanding of repayment ability.
• History of Employment: An applicant with a history of changing jobs frequently is prone to more risk and impacts your eligibility for a Home Loan
• Loan Tenure: The loan tenure impacts your eligibility for Home Loan. A short tenure can lead to high monthly payments and positively affect your eligibility 
• Adding Co-applicant: Adding a co-applicant holding a strong financial profile increases the chances of Home Loan approval

How to Improve Your Axis Bank Home Loan Eligibility? 

Improving your Home Loan eligibility with Axis Bank is essential for smoother approval of your Home Loan application. Here are the factors to consider to ensure improvement in your Home Loan eligibility:

• Credit Score: Maintaining a good credit scoraster approval of your home loan.
• Debt-to-income Ratio: A higher debt to income ratio will reduce your chances of aproval of a home loan from Axis Bank.
• Down Payment: Ensure to make a high down payment as it reduces the amount of monthly mortageg payments in the future.
• Co-signing Options: A good credit score increases chances of securing a co-signer, who in turn is responsible for taking responsibiliy of the loan repayment incase you fail to meet relevant obligations. 

To conclude, the Axis Bank Home Loan eligibility calculator is useful for borrowers to gain a thorough understanding of the loan amount to receive considering the repayment capacity and income structure. By offering a competitive interest rate, flexible repayment options, and a transparent lending process, Axis Bank ensures a smooth journey to the Home Loan approval process.