What should be the first step when going to opt for a Citibank home loan to buy your dream house? Well, first of all, you should be thinking about your home purchase budget i.e. the amount you are going to take as a home loan amount. Other factors such as suitable interest rate, processing fees, etc. come after finding the right budget for your home loan. Now, you must be thinking how can you have an accurate estimate about your home loan purchase budget? Well, this can be easily done with the help of Citibank home loan eligibility calculator.
It wouldn’t be an exaggeration if we say that one of the most crucial aspects of a home loan is finding the eligible home loan amount. There are several reasons behind this statement that you would find interesting. First, you need to repay the home loan amount to the lender via EMI. So, if you opt for a higher loan amount beyond your repayment capacity, you may default, which can lead to a decrease in your credit score. This is why, it is advised to use the home loan eligibility calculator before choosing the right home loan amount for yourself. Here, we will discuss the functioning of Citibank Home Loan eligibility calculator so that you can understand it better. Start reading!
Steps to Use Citibank Home Loan Eligibility Calculator
Before understanding the steps involved, you should know what exactly is a Citibank home loan eligibility calculator. Well, this tool helps people to know how much loan amount they can take according to the details put by them into it. And as we said earlier too, it is quite important to use this tool before finalizing the loan amount. So, now let’s move on to the steps involved in the process. You can check them out below!
- In the first step, you will need to enter the monthly income details. The reason: monthly income of an individual helps lenders to have an estimate about their repayment capacity. An individual with a higher income can get a higher loan amount as compared to an individual who has a lower income because the former individual can set off a higher portion towards his or her monthly income.
- In the second step, you will need to put in your monthly EMI/s if there are any. These EMI can be towards your existing personal loan or credit card. Do remember that lenders are more likely to approve a higher loan amount to those individuals who don’t have an existing obligation.
- Now, for the third step, you will need to choose the interest rate for your home loan. Citibank Home Loan interest rates range from 7.13% to 8.03% per annum. However, the final rate of interest will depend on several factors and will be decided by the bank.
- In this step, you will need to specify how much downpayment you can make towards your home before taking a home loan amount. If you make a higher down payment, the loan amount will be lower that will make your interest rates lower.
- For the final step, you will need to enter the tenure for which you want to take a home loan. Any individual can choose a tenure of maximum of 25 years to opt for home loan. However, the final tenure will be decided by the bank.
As soon as you complete these five steps, you will get the maximum eligible home loan amount that you can get. Do remember that this is only a tentative loan amount, and the bank will take the final decision regarding your final amount after assessing different factors such as current age, retirement age, gross monthly income, rental or other income, credit history, credit score, monthly obligations, etc.