Home Loan Eligibility Calculator

Home Loan eligibility is dependent on several factors such as how much monthly income an individual brings in, their current age, credit score-related information and fixed monthly financial obligations, and the individual's loan repayment capacity at large. A home loan eligibility calculator helps you determine whether you are eligible to borrow the funds needed to purchase a house or renovate your existing one.

Home Loan Eligibility Calculator

Home Loan Eligibility Criteria

Given below is the comprehensive list of Home Loan eligibility criteria:

If you meet these parameters, you will be eligible for an instant home loan approval once the credit assessment is complete.

• House Loan Eligibility Based on Salary: Your monthly salary helps the lender determine your home loan repayment capacity. To be eligible for a home loan, you must be a salaried person with at least three years of corporate experience in your respective field. Your income also helps the lender understand the maximum loan amount they can extend without risking default.

Check Eligibility Based on Salary:

• House Loan Eligibility Based on Age: Your age plays an important role in determining your eligibility for a housing loan. The lower your age, the more time you have to pay off the home loan. It can also make you eligible for a higher loan amount.

Home Loan Eligibility Criteria of Various Banks/NBFCs

The below table includes the range of eligibility of home loan for self-employed & salaried applicants:

Disclaimer: Home Loan eligibility criteria depends on the rules and regulations of the financial institution. The lender gives approvals based on borrowers' income, credit profile, and existing relationship with the bank.

Key Factors that affect your Home Loan Eligibility

• Age: Your age helps the lender determine the number of years you have to pay off the loan. This is one of the reasons why people who are at an advanced stage in their lives find it difficult to lock a longer repayment tenure period with the lender. Hence, it is advised that you apply for a home loan in your prime earning years as it will make the home loan EMI repayment easier.

• Income: Your monthly salary essentially tells the lender how you will be able to manage your finances for home loan EMIs. Additionally, while applying for a home loan, you must ensure that you have a steady source of income as it positively impacts your overall eligibility for home loan status.

• CIBIL Report: The CIBIL report is an important aspect that lenders consider while going through your home loan application. Each time you submit a home loan application, the lender extracts a report from the CIBIL database. A higher CIBIL score, one that is over 750, improves your chances of being eligible for a home loan with better terms.

• Home Loan Repayment Tenure: Opting for a longer home loan repayment term will, in turn, improve your eligibility. A longer-term brings down your EMI obligations and essentially makes it more manageable.

• Other Financial Obligations: Lenders prefer individuals with a debt-to-income ratio of 40:60, respectively. The lower this ratio is, the better are your chances of being granted a house loan. Too many outstanding credit accounts do not paint a positive picture as it indicates unfavorable credit behavior.

How to Improve your Home Loan Eligibility?

There are several ways in which prospective borrowers/homeowners can improve their chances of securing a home loan. Below are some of the methods that you can deploy to improve your home loan eligibility:

• Add a family member as a co-applicant

• Avail a relatively structured repayment plan

• Ensure that you have a regular income and steady finances

• Provide details of any additional sources of income

• Maintain a record of the variable components of your salary, such as incentives, bonuses, and one-off monetary compensations, among others

• If you find any errors in your CIBIL score, you must raise a dispute immediately. Typically, it takes a credit bureau anywhere between 30-45 days to resolve discrepancies

• Good credit history is paramount. You must never have outstanding dues and always make timely payments towards your utility bills as well as other financial obligations

Points to Note Before using the House Loan Eligibility Calculator

• The calculator is indicative of ‘Do It Yourself’ (DIY) planning tools. The accuracy of the results depends on multiple factors

• The final home loan rate of interest and loan amount, apart from other loan specifics, could be different from results entered from the eligibility calculator. The results shown by the housing loan eligibility calculator are approximations based on these assumed details 

• The calculated amount is not meant to substitute any kind of information that the prospective borrower may otherwise seek