HDFC Home Loan Eligibility Calculator

Planning to buy your dream house? A home loan can make it possible, but checking your eligibility beforehand is essential. The HDFC Home Loan Eligibility Calculator helps assess your financial stability and creditworthiness, giving you a clear estimate of the loan amount you qualify for. For HDFC home loans starting at just 9.75%, this tool considers factors like income, age, and credit history, and simplifies the process and ensures informed decision-making. Read on to learn more about how it works.

What Is HDFC Bank Home Loan Eligibility Calculator?

The HDFC Home Loan Eligibility Calculator helps you estimate your loan eligibility by considering factors such as monthly income, age, credit score, financial commitments, credit history, and retirement age. It offers a clear understanding of your loan prospects, thus simplifying your financial journey.

How To Use HDFC Bank Home Loan Eligibility Calculator?

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

• Enter you gross monthly income.
• Enter the tenure of your home loan.
• Enter the interest rate being charged by HDFC Bank
• The calculator will display the total loan amount you are eligible for, along with the monthly EMI payable for the same. 

How Is HDFC Bank Home Loan Eligibility Calculated?

HDFC Bank calculates home loan eligibility by considering various factors  including your monthly income,, credit score, any existing loan obligations, and your remaining professional tenure.

Let's assume that Mr Patel intents to secure a home loan, with the following parameters in place: 

• Monthly Salary: Rs 1,00,000
• Tenure: 3 years (36 months)
• Miscellaneous Expenses: Rs 30,000
• 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)]-30000 = 20000 

So, he can afford to pay ₹20,000 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 = ₹20,000 (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 = 24 months

Adding these values to the formula, 

P = 20000 x [(1+0.00833)(^36) - 1]
        0.00833 x (1+0.00833)^36

P= ₹6,19,824.71

Therefore, the final loan amount Mr Patel is eligible for is ₹6,19,824.71.

HDFC Bank Home Loan Eligibility Criteria

The following mentions the eligibility criteria for availing of a home loan:

HDFC Home Loan Eligibility For Salaried Individuals 

The table below outlines the loan amount you may qualify for based on your salary. This calculation assumes a repayment period of 30 years, no existing EMIs, and an interest rate of 8.60% per annum.

HDFC Home Loan Eligibility for Self-Employed

Self-employed individuals can easily qualify for home loans with HDFC, thanks to tailored products that meet their unique needs. They fall into two main categories - professionals (like doctors, engineers, and lawyers) and non-professionals (such as traders and contractors). Self-employed individuals can apply for home loans, either alone or jointly with co-applicants, typically family members.

The following are the key factors you need to consider while availing the loan as a self-employed individual:

• Income and Repayment Ability: Lenders require three years of income tax returns and at least two years of audited financial statements.
• Applicant Profile: Considerations include age, educational qualifications, and the number of dependents, which affect disposable income.
• Financial Position: Existing debts are evaluated and lower debts increase loan approval chances.
• Entrepreneurial Capability: Lenders assess the profitability and longevity of the business, as well as any related risks.
• Loan Tenure: Lenders can avail up to 30 years for adjustable-rate loans and 20 years for fixed-rate loans.
• Loan Amount: Based on property value, up to 90% for properties under Rs. 30 lakh and 75% for properties over Rs. 75 lakh.
• Interest Rates: Options include fixed and adjustable rates, with the flexibility to switch between them under certain conditions.

HDFC Home Loan Eligibility Based on Age

Applying for an HDFC home loan at an earlier stage allows you to benefit from a longer repayment period. This results in reduced EMIs, making it easier to manage your finances and other priorities effectively.

HDFC Home Loan Eligibility Based On Value Of Property

The following table highlights the HDFC home loan eligibility based on your property value: 

HDFC Home Loan Eligibility Based on Credit Score

To avail HDFC home loan your credit score should be around 650. This score increases your chances of getting home loans. The following is the loan eligibility based on your credit score: 

• 750 and above: Good
• 600 - 750: Average
• Below 600: Poor

Factors Affecting HDFC Bank Home Loan Eligibility

Your eligibility for a home loan largely depends on your income and repayment capacity. However, several other factors play a role in determining whether you qualify for a home loan. These include:

• Age: Applicants must be between 21 and 65 years of age. Your age helps determine the loan tenure you are eligible for and the amount you can borrow.
• Financial Stability: Higher gross income allows you to qualify for a larger loan amount with HDFC. Additionally, having a co-applicant can further boost your eligibility by increasing the total loan amount you can secure.
• Credit History: A consistent credit history with no defaults ensures a smooth loan approval process.
• Credit Score: Maintaining a minimum CIBIL score is essential to qualify for a home loan.
• Other Financial Obligations: If you have fewer existing loan EMIs or short-term debt obligations, your eligibility for a higher loan amount increases.

How to Improve Your HDFC Home Loan Eligibility?

To enhance your chances of qualifying for a higher home loan amount with HDFC, consider the following strategies:

• Add a Co-applicant: Including an earning family member as a co-applicant can increase your overall loan eligibility.
• Opt for a Structured Repayment Plan: Choosing a well-organised repayment schedule can improve your eligibility.
• Maintain Financial Stability: A consistent income flow, along with regular savings and investments, positively impacts your loan eligibility.
• Show Additional Income Sources: Providing details of any supplementary income can help boost your loan eligibility.
• Track Variable Salary Components: Keeping records of any variable components in your salary can also enhance your eligibility.
• Fix Credit Score Errors: Ensure there are no mistakes in your credit report, and take corrective action if needed.
• Clear Existing Debts: Paying off current loans and short-term debts can improve your financial standing, increasing your loan eligibility.

Determining your eligibility for an HDFC home loan is an essential part of the loan acquisition process. By familiarising yourself with the eligibility requirements and utilising tools like the HDFC home loan eligibility calculator, you can streamline your application and enhance your chances of getting approved. If you require help, HDFC provides a pre-approved home loan option, allowing you to start even before selecting your ideal home.