ICICI Bank Home Loan Eligibility Calculator

Wondering how to check your ICICI Bank home loan eligibility? The Cleartax ICICI Bank home loan eligibility calculator makes it simple for you. With home loans starting from 8.75% per annum,  this tool helps you determine the loan amount you can qualify for based on various key factors. By entering the required details, the calculator will give you an estimate of the maximum loan amount you may be eligible for. Go through this blog to learn more.

What Is ICICI Bank Home Loan Eligibility Calculator?

The ICICI Bank Home Loan Eligibility Calculator is a convenient online tool designed to help you determine your capacity of procuring a home loan based on certain financial aspects. ICICI Bank evaluates varius parameters such as age, income, credit score, employment status, and existing financial obligations to determine repayment capacity.

How To Use ICICI Bank Home Loan Eligibility Calculator?

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

• Enter your gross monthly income. 
• Enter the desired tenure for your home loan.
• Enter the relevant interest rate provided by ICICI Bank. 
• Enter any miscellaneous expenditures that you incur. 
• The calculator will automatically display the total loan amount you are eligible for, along with the monthly EMI payable for the same. 

How Is ICICI Bank Home Loan Eligibility Calculated?

ICICI 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 Verma aims to purchase a home loan, with the following parameters in place: 

• Monthly Salary: Rs 50,000
• Tenure: 4 years (48 months)
• Miscellaneous Expenses: Rs 10,000
• 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=[50000×(50/100)]-10000 = 15000 

So, you can afford to pay ₹15,000 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 = ₹15,000 (from Step 1)
• r = Monthly interest rate = 10% per year → (10/12) x (1/100) = 0.00833
• n = Loan tenure in months = 4 years → 4 x 12 = 48 months

Adding these values to the formula, 

P = 15000 x [(1+0.00833)(^48) - 1]
        0.00833 x (1+0.00833)^48

P= ₹5,91,422.4

Therefore, the final loan amount Mr Verma is eligible for is ₹5,91,422.4

ICICI Bank Home Loan Eligibility Criteria

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

ICICI Home Loan Eligibility For Salaried Individuals

The monthly salary of an individual also plays a crucial role in applying for an ICICI home loan. An applicant must meet the following criteria to avail the loan:

• The applicant must be an Indian resident.
• Their age must be between 23 and 60 years.
• Applicant’s minimum monthly salary must be Rs. 12,000.
• Their loan tenure can go up to 240 months.
• Eligible loan amounts range from Rs. 2 lakh to Rs. 20 lakh.

ICICI Home Loan Eligibility for Self-Employed

A self-employed individual has to meet the following criteria to avail ICICI home loan:

• The applicant must be an Indian resident.
• Applicant’s age should be between 23 and 70 years.
• Self-employed individual's minimum monthly income must be Rs. 30,000.
• Their loan amounts range from Rs. 2 lakh to Rs. 30 lakh.
• The loan tenure can be extended up to 240 months.

ICICI Home Loan Eligibility Based on Age

Younger applicants have the advantage of getting up to 30 years to repay a loan from ICICI Bank, resulting in significantly reduced monthly EMIs, making the home loan more affordable. The ICICI home loan eligibility based on age is as follows:

• The minimum age for application of salaried individuals is 23 years, with a co-applicant who is around 18 years old.
• For salaried individuals who are Indian residents, the applicant's age should not exceed 60 years at the end of the loan tenure. They can have a co-applicant with a maximum age of 60 years.
• The minimum age for self-employed individuals is 28 years along with the co-applicants’ age whose age should be 18 years.
• Self-employed individuals should not be over 70 years of age at the end of the loan tenure, with a maximum co-applicant age of 65 years.
• For NRIs, they must be at least 25 years old, and their co-applicant must be at least 18 years old. This applies to both salaried and self-employed individuals.
• The age of NRIs should not exceed 60 years at the end of the loan tenure, with a maximum co-applicant age of 65 years. This is applicable to both salaried and self-employed individuals.

ICICI Home Loan Eligibility Based on Value of Property

The value of a property also influences your home loan eligibility. Here is a table showing the ICICI Bank home loan eligibility criteria based on your property value:

ICICI Home Loan Eligibility Based on Credit Score

The following table mentions the different credit ratings of the ICICI home loan eligibility:

750 and above: Good

600 – 750: Average

Below 600: Poor

Note that a minimum credit score of 700 is required for the applicant to be eligible for a home loan from ICICI Bank.

Factors Affecting ICICI Bank Home Loan Eligibility

Your ICICI Bank home loan eligibility mainly relies on your income and repayment ability. However, several other factors also come into play, such as:

• Age: Applicants must be between 18 and 70 years old. Your age helps determine the loan tenure you qualify for.
• Financial Stability: Higher income increases your eligibility for a larger loan, especially in your city. Having a co-applicant can further boost the loan amount you qualify for.
• Credit History: A clean credit history, without defaults, ensures smoother loan approval.
• Credit Score: You must meet the minimum CIBIL score requirement for eligibility.
• Existing Financial Commitments: Any current loans or debts also impact your loan eligibility.

How To Improve Your Home Loan Eligibility?

There are several factors to consider for improving your home loan eligibility. Those factors include:

• Credit Score: Maintaining a high credit score helps an individual secure a home loan faster.
• Debt-to-income Ratio: ICICI Bank measures your debt-to-income ratio which determines the percentage of your monthly income being allocated towards repayment of debts. 
• Down Payment: Making a high down payment results in requirement of a lesser loan value, thus reducing your long-term mortgage. 
• Co-signing Options: Maintaining a good credit score improves loan approval chances and makes securing a co-signer easier, as they assume repayment responsibility if obligations aren't met.

Checking your ICICI Bank home loan eligibility with the ICICI Bank home loan eligibility calculator will help you secure your loan in an easier way. It gives you a clear idea of the loan amount you can qualify for based on your income, financial commitments, and credit score. By using the calculator, you can plan your finances better and speed up the loan approval process.