Home Loan Eligibility Calculator

Home Loan Eligibility

Minimum and Maximum Age	18 - 70 years. However, some banks different minimum and maximum age for salaried, self employed and self employed professionals
Net Monthly Income	Net monthly income should be more than Rs. 25,000. In case your net monthly income is between Rs. 25,000 – Rs. 40,000, you may be eligible for loan if your fixed obligations (rent, EMI) do not exceed 50% of income. For net monthly income greater than Rs. 40,000, you may be eligible for loans if your fixed obligations do not exceed 65% of income For salaried persons, regular and timely salary credit is important for loan eligibility
Loan Tenure	Maximum loan tenure up to 35 years. However, some can have lower tenure as well.
Interest Rate	8.10% to 12.50%
Company, Employment history	Income history and job continuity of 3 years and more required (except for some professionals) Company or sector in which you work should not be black listed by bank Some professionals such as practicing lawyers, police personnel, builders may be considered as negative profiles by some banks
Higher Eligibility with Co - applicant	Adding an earning family member as a co- applicant can increase your housing loan eligibility. The co-applicant must have a share in the property as well. Eligible co-applicants include direct family members such as spouse, parents, siblings and children. Indirect family members like cousins, distant relatives and friends cannot be considered as co-applicants
Current EMI’s	Monthly EMI of existing loans reduces the new EMI that you can afford to pay. In some cases, it may be possible to increase eligibility by repaying loans with balance tenure of less than 10 years
LTV	Banks only fund 75% to 90% of the total cost of the house. The maximum loan to value of the property or LTV specified by the RBI is as below: 90% LTV for loans upto Rs. 30 lakh for buying affordable segment homes 80% LTV for loans above Rs. 30 lakhs and upto Rs. 75 lakhs 75% LTV for loans above Rs. 75 lakhs
CIBIL score and Credit report	Home loan is a form of secured loan. Hence, CIBIL score is one of the criteria but not the only criteria to decide your loan eligibility. Generally banks require a CIBIL score of 650 and above But if your CIBIL score is low, then you can be eligible for ‭Home loan from some banks and housing finance companies with some additional conditions, higher rate of interest and higher margin.
Property approval and valuation	The builder and property against which you are taking loan should be approved by banks For property being bought in resale, banks get a valuation report from an independent valuer. For higher ticket size loans (Rs. 1 cr and above), banks may get valuation reports from two independent valuers and take an average of the two to arrive at value for the purpose of calculating maximum loan eligibility based on LTV For arriving at property value of under construction property being bought from a builder, most banks include basic cost, development charges, preferred location charges and cost of parking in cost but do not include heads like stamp duty, club charges, registration charges, maintenance charges, security deposit etc. GST is included in cost by some banks and home finance companies but not by all banks.

Housing Loan Eligibility – Tips

• Apply with a co-applicant: You can boost your eligibility by adding an earning spouse or your parents as a co-applicant. Taking a joint loan with the co-applicant increases your income and eligibility to borrow more money. Suppose, your monthly income is Rs. 30,000 and the loan amount you are eligible for is Rs. 15 Lakh, If you add your spouse as co-applicant, earning Rs. 20,000 per month, can increase your eligibility to Rs. 25 Lakh. So, it is advised to add a co-applicant, wherever possible, to improve your eligibility.
• Clear your existing debts: If you have running loans and you are paying other EMIs because of which your loan amount eligibility is low, you may want to prepay some of your existing debts to improve your eligibility. Say, your monthly income Rs. 35,000 per month and you have a credit card outstanding of Rs. 10,000. In this case, your eligibility decreases as your FOIR is calculated on your income left after paying obligations. So, pay your credit card dues and then apply for a fresh loan for higher loan amount
• Increase loan tenure: Apply for a maximum tenure as per your age. If you apply for housing loan for 30 years, it will enhance your eligibility as the EMIs go down. In this case, however, you will end up paying more interest by the end of the tenure. In contrast, if you take loan for 10 years tenure, you might be eligible for a lower loan amount.
• Complete market research: Do complete market research as the home loan interest rates keeps on fluctuating. Fixed rates remain same during the tenure and floating rates change with change in RLLR/repo rate or PLR. It is important to study the changes in home loan rate of various banks in response to repo rate to understand the responsiveness of banks to market rate changes.
• Other income source: Higher income enhances your eligibility. If you are earning income through other sources such as rent, then don't forget to mention the income with complete proof as it can increase your eligibility for a high loan amount.

Illustration – Mr. A, 30 years old, wants to purchase a home whose property value is Rs. 60 Lakh, His net income is Rs. 50,000 per month and he has no other fixed obligations. Banks will calculate Mr. A’s loan amount eligibility based on his age, net income and his fixed expenses as a % of his net income. Based on the loan amount Mr. A is eligible for, he will be offered home loan rate corresponding to the slab he falls in and that will be used to calculate his EMI. In Mr A’s case, he will get the following results for various banks on a home loan eligibility calculator.

Bank	Loan Amount Eligibility	Interest Rate	EMI
SBI	Rs. 47.85 Lakh for 35 years	8.15%	Rs. 34,511
HDFC	Rs. 36.36 Lakh for 30 years	8.25%	Rs. 27,319
ICICI Bank	Rs. 45.61 Lakh for 30 years	8.55%	Rs. 35,235
Axis Bank	Rs. 46.43 Lakh for 30 years	8.40%	Rs. 35,371
PNB Housing Finance	Rs. 43.09 Lakh for 30 years	9.05%	Rs. 34,829
DBS Bank	Rs. 46.15 Lakh for 20 years	8.45%	Rs. 39,907
DHFL	Rs. 40 Lakh for 30 years	9.75%	Rs. 34,366
IDBI Bank	Rs. 47.27 Lakh for 30 years	8.25%	Rs. 35,514
IDFC Bank	Rs. 43.33 Lakh for 30 years	9.00%	Rs. 34,867
Indiabulls	Rs. 35.68 Lakh for 25 years	9.25%	Rs. 30,552

• As you can see in the above table, loan amount eligibility differs for different banks. Hence, it is extremely important to compare the eligibility terms and interest rates of different banks before choosing the bank.
• Bank offering highest eligibility of Rs. 47.85 Lakh is SBI.
• Minimum eligibility of Rs. 35.68 Lakh is offered by Indiabulls.
• EMI amount ranges from Rs. 27,319 to Rs. 39,907 at different interest rates offered by banks.

FAQs on Home Loan Eligibility Calculator

What is the eligibility for home loan?

The minimum eligibility criteria to avail a home loan are:

• Age: Your age should be above 18 years at the time of availing the loan, and it cannot be more than 70 years at the end of its tenure.
• Income: The minimum monthly income required is Rs. 25,000.
• Employment: For salaried minimum continuous employment required is 3 years. For self-employed minimum business vintage required is 5 years.
• Credit Score: The minimum credit score required to avail the home loan is 650.

How much home loan can I get on Rs 30,000 salary?

The amount of home loan is decided based on the FOIR (Fixed obligation ratio) or LTV (Loan to value) of property. The lower of these two factors are considered to determine the loan amount. Suppose if your FOIR is 50% and LTV is 90% for the property, which costs Rs. 66,00,000. Now, if you do not have any other EMI going on, then the maximum amount you can pay each month is Rs. 30,000*50% = Rs. 15,000.
If you choose the tenure to be 30 years, then as per FOIR, your loan amount = Rs. 15,000*12*30 = Rs. 54,00,000. However, LTV is Rs. 66,00,000*90% = Rs. 59,40,000. So, the loan you can get on Rs. 30,000 salary is Rs. 54,00,000.

How much home loan can I get on Rs. 70,000 salary?

The home loan amount is decided based on the FOIR (Fixed obligation ratio) or LTV (Loan to value) of property. The lower of these two factors are considered to determine the loan amount. Suppose if your FOIR is 50% and LTV is 85% for the property, which costs Rs. 80,00,000. Now, if you do not have any other EMI going on, then the maximum amount you can pay each month is Rs. 70,000*50% = Rs. 35,000.
If the tenure for home loan is 30 years, then as per FOIR, your loan amount = Rs. 35,000*12*30 = Rs. 12,60,00,000. However, LTV is Rs. 80,00,000*85% = Rs. 68,00,000. So, the loan you can get on Rs. 70,000 salary is Rs. 68,00,000.

How much loan amount is eligible for my salary?

Your loan eligibility for your salary depends on the FOIR. Suppose, the FOIR provided by bank is 50% and tenure is 30 years. Then, your loan amount eligibility based on various income will be:

Income	Loan Amount
Rs. 50,000	Rs. 90,00,000
Rs. 75,000	Rs. 1,35,00,000
Rs. 1,00,000	Rs. 1,80,00,000

Is guarantor required for home loan?

Since the home loan is a secured loan, banks usually do not ask for a guarantor. However, if a bank asks you explicitly for a guarantor, then you can ask your family or friends.