Opting for an NRI home loan allows NRI homebuyers to maintain their liquidity and financial preparedness for emergencies. It also allows them to enjoy home loan tax benefits. An NRI loan eligibility calculator is an online tool that lets users calculate the loan amount that they are eligible for. When a loan applicant requests an amount they qualify for based on their income and other factors, their chances of approval are significantly higher. This is because the lender is less likely to question the applicant’s ability to repay the loan. If you’re considering applying for an NRI home loan, make use of an NRI loan eligibility calculator.
In the next section of this article, we discuss in detail how NRI loan eligibility calculator work.
NRI Loan Eligibility Calculator: How Does it Work
Not all NRI home loan eligibility calculators are the same. Some are more detailed than others. However, basic NRI loan eligibility calculators will ask you to enter the following details:
- The first thing that the NRI loan eligibility calculator will ask you to share is whether you are salaried or self-employed.
- During the next step, you will be asked to enter your gross monthly income. If you want to be approved for a high loan amount, you must include income from all the different sources in your application. For instance, many NRIs own properties in India and earn rental income from these properties. Home loan applicants can add income from these sources to their loan application to increase their home loan eligibility in the home loan process and also get approved for a higher loan amount.
- The next step in the NRI loan eligibility calculator is selecting your loan tenor, in years. It’s important for home loan applicants to carefully consider this aspect. A longer repayment tenor may result in lower EMIs, but it could also reduce returns, as a longer repayment term often comes with higher interest rates, increasing the overall borrowing cost. Conversely, shorter tenors may lead to higher EMIs, which can be challenging to manage, especially during financially tough times. Borrowers should aim to balance the tenor, keeping EMIs affordable while minimizing the total interest payout.
- Next, enter the home loan interest rate you have been offered. You should try and secure the lowest home loan interest rates possible. However, this will be possible only if you are patient and are willing to spend time negotiating with financial institutions. It is also equally important that you build a strong credit profile and come across as highly creditworthy. Having your debt-to-income ratio and credit utilization ratio under control along with a stable income from a stable job will certainly help you establish a strong credit profile.
- Lastly, the NRI loan eligibility calculator will ask you to enter all the other EMIs you are paying. This includes EMIs you are paying towards any other loan you have, such as a home loan, personal loan, or car loan.
- Once all of these details go into the NRI loan eligibility calculator, the calculator will tell you the loan amount you are eligible for. Applying for this loan amount will significantly increase your chances of getting approved for a NRI home loan and that too on the most beneficial loan terms and conditions.
Concluding Remarks
Make sure to meet your preferred financial lender’s eligibility requirements. Financial institutions ask NRI home loan applicants to have a credit score above 750 and adhere to the age limit criteria (most lenders require applicants to be at least 25 years of age at the time of applying for the loan and no more than 65 years of age at the time of loan maturity; however age requirements can vary from lender to lender), and have a stable job and income.
Additionally, you must ensure you have all the necessary home loan documents ready. Lastly, when asked to provide a power of attorney, make sure to appoint someone who is trustworthy and dependable. This is an important document and you must give it to someone you trust.