How To Calculate Home Loan Eligibility For Non Resident Indians
Mrs Dubey is an Indian citizen working in the UK. Lately, she has been planning to purchase a property in India. However, before moving forward, Mrs Dubey wants to determine the loan amount she can borrow against her income.
In this regard, she can use an NRI home loan eligibility calculator to assess her eligibility and make an informed choice avoiding possible loan application rejections.
Do you want to know more about how this online tool can be helpful?
Keep reading!
What is Home Loan Eligibility?
To qualify for a home loan, every borrower needs to meet certain eligibility parameters. These criteria help the lenders in determining whether the borrower will be able to repay the loan amount in the given tenor or not.
So, if you fail to meet the eligibility criteria, the lender may reject your loan application, which will, in turn, have a negative impact on your credit profile.
How is Home Loan Eligibility Calculated?
Home loan interest rate is calculated by considering several factors, including:
Fixed Obligations to Income Ratio (FOIR)
FOIR represents the disposable income that you can use to repay the debt. So, if your FOIR is 50%, it indicates that your monthly obligations are 50% of the monthly income. The financial institution will consider the remaining amount to determine the loan amount you can borrow.
Your income
Every lender sets a minimum income criterion based on the city you stay and work in. If you are salaried or self-employed with a steady source of income, you are eligible to apply for a home loan.
Employment status and age
Similar to your income, your employment status also affects home loan eligibility. If you are a salaried employee for a reputable private or public limited company, you are considered a more reliable borrower.
Credit score
Lenders assess the creditworthiness of borrowers through their CIBIL score, which is a three-digit numerical score ranging between 300 and 900. The higher your score, the better are your chances of obtaining a home loan at reasonable terms.
Also Read – Home Loan For Women
Home Loan Eligibility Based on Salary
You can also use an NRI home loan eligibility calculator to check your eligibility based on your monthly salary.
Your salary is crucial as it helps in determining your repayment ability. Lenders will consider your salary minus various deductions such as gratuity, ESI, PF, etc.
Here’s a tabular representation of how much loan one can borrow based on salary. Note that this will vary depending on the financial institution offering the loan.
| Net Income (Monthly) | Home Loan Amount |
| Rs. 25,000 | Around Rs. 16 lakhs |
| Rs. 35,000 | Around Rs. 25 lakhs |
| Rs. 50,000 | Around Rs. 36 lakhs |
| Rs. 60,000 | Around Rs. 45 lakhs |
| Rs. 70,000 | Around Rs. 52 lakhs |
| Rs. 80,000 | Around Rs. 61 lakhs |
| Rs. 90,000 | Around Rs. 70 lakhs |
Home Loan Eligibility Based on Age
You can also check your home loan eligibility based on your age. Typically, if you are younger, you will be eligible to opt for a longer tenor and vice versa.
Age-specific eligibility criteria vary from lender to lender. However, you can get a fair idea of the maximum tenor you can choose according to your age in the table below:
| Applicant’s Age | Loan Tenor |
| 25 years | Around 30 years |
| 30 years | Around 30 years |
| 35 years | Around 30 years |
| 40 years | Around 30 years |
| 45 years | Around 25 years |
How to Check Home Loan Eligibility?
You can easily check your housing loan eligibility by following these steps:
Step 1
Open the home loan eligibility calculator of your preferred lender.
Step 2
Enter your net monthly income.
Step 3
Put in the desired loan tenor in which you would like to repay the loan amount.
Step 4
Put in the interest rate as per the lender.
Step 5
Enter current EMI obligations, if applicable.
Also Read – Home loan Tax Benefits
After entering these details, you will get to see your home loan eligibility within a few seconds.
How to Enhance Your Home Loan Eligibility?
Here are a few ways through which you can increase your chances of availing a high-value loan amount against nominal rates:
Maintain a low FOIR
An applicant with a low FOIR is favoured by lenders when approving loan applications. This is because, with a low FOIR, your disposable income is more, indicating creditworthiness.
Pay off existing loans
Lenders also evaluate a borrower’s debt-to-income ratio. In this regard, clearing any existing debt before applying for a home loan can significantly increase your loan eligibility.
Apply jointly
Apply for a home loan with a co-applicant to increase your eligibility.
Upon meeting or exceeding home loan eligibility, you can get instant home loan approval by downloading the Navi app . Navi offers high-value loans of up to Rs. 5 crores at competitive interest rates of 7.39% p.a.
Final Word
NRIs can use the above NRI home loan eligibility calculator to get an estimate of how much loan amount they can avail. This tool offers accurate, fast and convenient calculations. With this indispensable tool, you can plan your finances beforehand, resulting in an affordable and informed borrowing experience.
Frequently Asked Questions
Does the home loan eligibility vary for salaried and self-employed individuals?
Yes, eligibility criteria for home loans may slightly vary for salaried and self-employed individuals. For most lenders, the basic eligibility parameters remain the same. However, certain criteria regarding work experience and monthly income may differ.
Will I be eligible to obtain a home loan with a bad credit score?
Since a home loan is secured financing, the credit score is not the first thing that lenders consider. That said, with a high credit score, your chances of loan approval are higher.
However, if you maintain a steady income source with a low FOIR and successfully meet the remaining eligibility parameters, you can easily avail a home loan.
As an NRI, how can I apply for a home loan?
NRIs can apply for a home loan online. They simply need to visit the official website of their preferred lender, fill the application form, complete the documentation and wait for the representative to contact them. Alternatively, if you happen to be in the country, you can visit the branch to apply for a home loan.
I am a self-employed NRI. Am I eligible to obtain a home loan?
Yes, several financial institutions in India provide housing loans to self-employed non-resident Indians. You can opt to repay the loan amount at a flexible tenor and meet/exceed the eligibility parameters to get competitive interest rates and flexible terms and conditions.
Is a co-applicant compulsory for an NRI home loan?
Yes, as an NRI, you need to add a co-applicant with general power of attorney (GPA) when applying for a home loan. In case a local co-borrower is not available, you can add a guarantor to your home loan. The said guarantor will be liable to repay the loan amount if you fail to do so.
Before you go…
Are you looking to buy that house you’ve been eyeing 🏠 and you need a loan of up to ₹5 crore. Install the Navi app now and get instant in-principle approval right away! Interest rates starting at 8.60% p.a.
Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
Home Loan Knowledge Base
