Your Guide to a Smarter Home Loan Journey
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Owning a home can be one of the most meaningful investments in life. It offers both comfort and long-term financial value. To make this dream a reality, individuals may turn to a home loan as a practical financing solution.
If you are planning to secure a home loan to purchase a property, understanding how a home loan works can help you make better borrowing decisions.
This guide walks you through the key aspects of a home loan, including how the interest rate affects your repayment, how to check your eligibility, and how to make the most of online planning tools, such as a home loan EMI calculator.
What Is a Home Loan?
A home loan is a type of secured financing solution that allows you to purchase a property. The property being purchased acts as collateral for the loan. Your eligibility for a home loan, or in simple terms, the loan amount that you can borrow, is determined based on several factors such as the value of the property, your income, and repayment capacity, among others.
The loan is repaid in monthly instalments over an agreed period. Each instalment constitutes a principal and an interest component.
Using a Home Loan EMI Calculator
A home loan EMI calculator is an online tool that can help you estimate EMIs easily. Use the Home Loan EMI Calculator by Bajaj Housing Finance Limited to plan your repayment efficiently by entering just a few details:
- Loan amount
- Interest rate
- Tenure
The calculator instantly displays the EMI amount, along with the total interest and amount payable over the tenure. You can also adjust these values to explore various loan options to find what fits your requirements best. In addition, the home loan EMI calculator provides a detailed repayment schedule. This includes a month-wise breakdown of your EMIs and highlights how each instalment contributes towards principal repayment and interest payment.
What Determines Your Home Loan Eligibility?
Before offering a loan, lenders assess your home loan eligibility to determine the amount they can offer. For example, Bajaj Housing Finance Limited considers several factors while assessing your eligibility, such as:
- Employment Type: A salaried individual with a minimum of 3 years of work experience in public sector companies, private firms, or multinational organisations is eligible. Similarly, a self-employed applicant must demonstrate a consistent business vintage of at least 3 years to be eligible.
- Age: Applicants should be between 23 and 67 years of age, if salaried, and between 23 and 70 years, if self-employed. Here, note that the maximum age is considered as the age at the time of loan maturity.
- CIBIL Score: A credit score of 750 or higher can help you secure better loan terms.
You can use the Home Loan Eligibility Calculator by Bajaj Housing Finance Limited to estimate the loan amount you can borrow.
Essential Documents for a Hassle-Free Home Loan Process
Having your documents in order beforehand saves time and speeds up the approval process. Here's a quick checklist:
- Identity proof (like Aadhaar, PAN, or Passport)
- Address proof (such as electricity or water bills)
- Mandatory PAN/Form 60 documentation
- Income documents – For salaried applicants: salary slips, Form 16, and bank statements / For self-employed individuals: income tax returns, P&L statements, and business registration certificates
- Property documents (including the sale agreement, title deed, and property tax receipts)
Tips to Improve Loan Approval Chances
Want to improve your chances of being approved for a home loan? Here are a few steps to take:
- Pay your credit card bills and EMIs on time
- Reduce existing liabilities
- Consider adding a financial co-applicant, as it can increase your combined eligibility and offer better loan terms
Comparing Home Loan Options
Before you finalise, it is wise to compare different home loan offers. Look beyond just interest rates. Evaluate:
- Processing fees and hidden charges
- Prepayment and foreclosure flexibility
- Customisable tenure or step-up repayment features
A home loan can help you step closer to homeownership. Make use of online tools such as EMI and eligibility calculators to compare various home loan offers. Keep all the required documents handy to ensure a smooth borrowing experience.
Disclaimer: No Business Standard Journalist was involved in creation of this content
Topics : home loan rate
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First Published: Jun 25 2025 | 5:18 PM IST
