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. Let us learn everything in detail that you must know about home loan eligibility, its criteria, and how it is calculated.

What is Home Loan Eligibility Calculator?

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. To understand your home loan eligibility criteria, you must enter the following details into the calculator:

  • City of Residence: Enter the city in which you are currently residing.

  • Monthly Income: Your monthly income gives the lender an indication of your repayment capacity before approving your home loan application. Hence, it is one of the most important details that you will have to furnish.

  • Existing EMIs: Do you have any other loans that must be paid off? If so, you will have to share details regarding those as well. This will help the lending partner to take a call on the viability of granting you a Home Loan.

Once the above details have been shared with the lending partner, they will confirm your housing loan eligibility and offer the maximum home loan amount as per their guidelines and your financial health.


How is Home Loan Eligibility Calculated?

The Home Loan eligibility calculator tool works on a mathematical formula that considers certain variables to evaluate the borrower’s eligible loan amount. It considers things such as the expected loan amount, borrower’s age, monthly income, existing obligations or EMIs, and any secondary income, among other things.

Home Loan Eligibility Criteria

You must meet certain conditions before applying for a home loan, namely the Home Loan eligibility criteria. These are:

  • You must be a citizen of India

  • You must be drawing a salary from a corporate organization for at least three years

  • You must be between 23 to 62 years of age

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


Eligibility Criteria for Home Loan

Employment Status :  Salaried or self-employed

Age Limit :  For salaried: 23 to 62  |   For self-employed: 25 to 70 

Annual Income :   For salaried: ₹10,000 per month  |    For self-employed: ₹2 lakh per annum

Work Experience   :   For salaried employees: Minimum 3 years  |    For self-employed (business continuity): Minimum 5 years

Residence Type   :   Permanent resident or non-resident Indian (NRI)

Required Credit Score for Home Loan  :   Above 750

Property Type  :   Completed Project, Under Construction Project, Buy Land/Plot and Build on Own Land, Buy Land and Build Home


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.

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.

What Factors Determine Your Home Loan Eligibility?

The primary factors considered while calculating house loan eligibility are the borrower’s monthly income and repayment capacity. Other factors that determine housing loan eligibility are the individual’s age, credit history, CIBIL score, existing financial obligations, and overall financial health. Let’s understand the factors in detail to check home loan eligibility before applying.


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 tenor 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.

  • Your 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 Tenor: Opting for a longer loan 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 home 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 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