#housing loan eligibility calculator #Home loan eligibility calculator helps to ascertain whether or not an individual is eligible to acquire home loan of a particular amount.It is based on following factors:

• Monthly Income (I) - This is ultimate income or the remaining amount of income after making all tax and other sorts of deductions from the gross/total salary of the individual.
• Loan Tenure (T) - This refers to the total duration or the period for which the loan has been acquired in terms of months.
• Interest rate (R) - The rate of interest for the home loan.

Let us suppose an individual is drawing a net salary of Rs 30,000 per month.We consider that 50% of the net monthly salary as being available for EMI payments (i.e. Rs 15000).

At an interest rate of 8.75%, the monthly installment of a Rs 1 lakh, 15-year loan is Rs 999 as per the formula:

EMI = Pxrx(1 + r)^n/((1 + r)^n - 1)

where P=1,00,000 Rs.

r=(8.75)/12/100

n=150*12

Banks then calculate your eligibility using a simple formula:

Home Loan eligibility in lakh is equal to the amount determined by the bank as available for loan repayment divided by loan installment per lakh for the selected Period.

Loan eligibility = Rs 15,000/999 x 1 lakh = Rs 15 lakhs

To calculate Eligibility range we consider that at the max 50% and at the minimum 35% of the net monthly salary as being available for EMI payments.