When planning to take out a home loan, it's important to understand the difference between a home loan eligibility calculator and a Home Loan EMI calculator, as both tools serve distinct purposes in helping you make informed borrowing decisions.
In this guide, we’ll compare the home loan eligibility calculator vs the EMI calculator to simplify your decision-making process.

What Is a Home Loan EMI Calculator?

An EMI (Equated Monthly Instalment) calculator is a tool that helps you estimate your monthly loan repayments. By inputting the loan amount, interest rate, and tenure, the calculator provides an approximate EMI amount. This helps you understand how much you'll need to pay each month, allowing you to budget effectively.

Example Calculation

Let’s say:

• Loan Amount = INR 50,00,000
• Interest Rate = 10% per annum
• Loan Tenure = 240 months (20 years)

Using the SMFG Grihashakti home loan EMI calculator, your monthly EMI would be approximately INR 48,251.
This means you’ll need to pay INR 48,251* every month for the next 20 years to repay your loan.

What Is a Home Loan Eligibility Calculator?

A home loan eligibility calculator helps estimate the maximum loan amount you may qualify for. It considers factors such as your monthly income, net monthly obligations, and the market value of the property you wish to purchase. Based on this data, the tool provides an estimate of the loan amount you could comfortably repay without overextending yourself.

Example Calculation

Let’s say you input the following in the SMFG Grihashakti home loan eligibility calculator:

• Monthly Income: INR 1,00,000
• Net Monthly Obligations (existing EMIs, credit card bills, etc.): INR 30,000
• Market Value of the Property You Wish to Buy: INR 60,00,000
• Interest Rate: 10% per annum
• Loan Tenure: 240 months (20 years)

The maximum home loan amount you can get would be approximately INR 45,00,000.

This means, based on your income and financial obligations, you may be eligible for a home loan of up to INR 45 lakhs*. You can then plan to make a down payment for the remaining amount, which would be around INR 15 lakhs.

This tool is invaluable in setting a realistic budget for your home purchase and ensuring you don't overstretch your finances.

Note: EMI and eligibility calculators show estimates that are for demonstrative purposes only. The actual loan eligibility, amount, and other terms will depend on several factors, including the lender’s policy at the time of loan application.

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Home Loan Eligibility vs EMI Calculator: Key Differences

This table highlights the home loan eligibility and EMI calculator differences to help you better understand their individual roles:

Conclusion

Understanding the home loan eligibility calculator vs EMI calculator distinction is crucial in your homebuying journey. The former helps you determine how much you can borrow based on your financial profile, allowing you to set a realistic budget and apply for a practical loan amount – thereby increasing your chances of approval. Once you know the loan amount, the EMI calculator assists in understanding your monthly repayment obligations, helping you manage your finances effectively. By using both tools strategically, you can make well-informed decisions and approach your home purchase with confidence.
To help you own your dream home, SMFG Grihashakti offers home loans of up to INR 1 crore* at competitive interest rates starting from 10%* per annum, with flexible tenures of up to 30 years*. Use our eligibility and EMI calculators and apply online with minimal documentation!