This is all in one Loan Affordability Calculator with extra payment, prepayment, chart, summary, amortization table and lot of additional features. Loan Eligibility Calculator can be used as Home Loan Affordability Calculator, Home Renovation Mortgage EMI Affordability Calculator, Personal Loan Affordability Calculator, Car Mortgage Eligibility Calculator and Two-Wheeler Loan Affordability Calculator. Apart from these simple calculator, it can also be used as Payday Loan Eligibility Calculator, Education Loan Eligibility Calculator, Credit Card Eligibility Calculator, Small Business Mortgage Affordability Calculator, Agriculture Loan Eligibility Calculator, Gold Mortgage EMI Affordability Calculator, Consumer Durable Loan EMI Affordability Calculator and many more types of calculators.
Note: (1) There are many of differences in excel and google spreadsheet. Due to which we have created separate version for different spreadsheets. (2) You need to click on “Enable Editing” option when you see “Protected View” default error message in excel spreadsheet.
Loan Affordability Meaning
What is loan affordability? Loan affordability means borrower affordability to repay the loan. Loan eligibility is primarily known as loan affordability. Everyone have a bigger dream and you can fulfil only those dreams which you can afford it. A customer takes a loan for many reasons. Bankers / lenders analyse and approve loan based on your capabilities to repay and your monthly savings after deducting expenses.
Loan Affordability Example
Let us take an example of loan affordability to understand it. Assume that your net savings is 35,000 and you are looking for a loan for 25 years at 6.75% annual interest rate. You can download and use mortgage affordability calculator to calculate your eligible loan amount. Loan amount you can afford will be around 5,065,772 based on your above input values.
Benefits of Mortgage Eligibility Calculator
Suppose you want to buy a royal house and you do not have funds to buy it. You are dependent on home loan to buy a house. It is important to know approximate eligible loan amount prior finalizing the house. Buying a house out of your budget can lead you to financial problems. All these questions are solved by using mortgage affordability calculator. You can find your eligibility to repay a loan well prior approaching banker for a loan.
Factors Affecting Loan Eligibility Calculation
You can find the approximate affordable loan amount using Loan eligibility calculator. There are wide range of factors affecting loan eligibility calculation. We have listed some of the crucial factors affecting your eligibility for loan.Income, Expenses and Savings are important factors to define your mortgage affordability amount.
1) Key factors like prior refusal of loan applications by other lenders, bad credit history and credit score, etc. affects a lot on your eligibility for loan amount.
2) Individual between 25 to 30 years of age can get approval on higher loan amount. An older person may have lesser change of approval for eligible loan amount.
3) Number of existing EMIs are verified by lenders and bankers. You can increase your loan eligibility by closing existing EMIs by way of extra payment.
4) Irregular income can affect your eligibility for loan. Bankers or financial institutions usually verify previous 3 years of bank statement / taxation letter to check stability of your income.
5) Providing additional collateral assets (Eg. Gold, Mutual Funds, Fixed Deposits) can increase your affordability and approval of a loan.
These are some of the important factors considered by lenders. You need to calculate monthly savings by subtracting regular expenditures. (Eg. Food, Medical, Entertainment, Daily Necessity bills, etc.) Deduct approximately 8% to 10% of monthly savings as an emergency fund. Your net savings can be calculated by above deductions. Net savings is the amount which you can contribute towards EMI for repayment of your loan.
How to Use Loan Affordability Calculator?
It is really simple to use it. You need to enter few basic loan details like: EMI you can afford, Annual Interest Rate, Loan Term, EMI Payment Method and Start Date of Loan. Rest of all the details like: Loan Affordability Summary, Loan Affordability Chart are automatically updated after entering basic loan details. You can use Loan calculator to evaluate expected monthly EMI based on your loan amount.
Play with tool by changing the EMI payment method, extra payments and view the result. Get the customized look by changing company name, tagline of your company and name of the calculator. You are not allowed to re-brand or sell without our written permission. Tools listed on our website can only be used for personal and internal purpose.
Who can Use Mortgage Affordability Calculator?
Here we have provided Loan Affordability Calculator with interactive, colourful amortization chart and table. You can use this all in one Mortgage Affordability calculator as below calculators.
- Car Loan Affordability Calculator / Auto Mortgage EMI Affordability Calculator
- Two-Wheeler Loan EMI Affordability Calculator / Bike EMI Affordability Calculator
- Home Mortgage Affordability Calculator / House Loan EMI Eligibility Calculator
- Home Renovation Loan Mortgage Calculator
- Credit Card EMI Affordability Calculator
- Personal Loan Eligibility Calculator
- Small Business Loan Eligibility Calculator
- Payday Loan Affordability Calculator
- Gold Loan Affordability Calculator
- Education Mortgage Affordability Calculator
- Consumer Durable Product Loan Eligibility Calculator
- Mortgage Affordability Calculator Against Credit Card
- Agriculture EMI Affordability Calculator
- And Many More Types of Loans.
You can download Mortgage Affordability Calculator excel sheet or google spreadsheet and play with it. Most importantly you can customize Loan Affordability Calculator according to your requirement. This will really assist you to provide personalized result with interactive charts and data to your customers.