Home Loan Eligibility Calculator

When planning to take a home loan, one of the crucial factors that a home loan borrower must consider is knowing about Home Loan Eligibility of various lending institutions as per the set standards of these institutions. Knowing about home loan eligibility ensures that there is no hassle in getting a loan, and the home loan application does not get rejected. Thus you can avail a loan smoothly and quickly without hurting your credibility.

Home Loan Eligibility are the specific criterias that a borrower needs to fulfill when applying for a home loan. These sets of parameters vary for every Bank and Non-Banking Financial Institutions and evaluate the creditworthiness of the borrower to repay the home loan on time without any default.

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 ₹ 25,000. In case your net monthly income is between ₹ 25,000 – ₹ 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 ₹ 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 The income criteria may vary under the Pradhan Mantri Awas Yojana scheme. You can check PMAY eligibility online before applying for a housing loan.
Loan Tenure	Maximum loan tenure up to 35 years. However, some can have lower tenure as well.
Interest Rate	6.95% to 12.15%
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 ₹ 30 lakh for buying affordable segment homes 80% LTV for loans above ₹ 30 lakhs and upto ₹ 75 lakhs 75% LTV for loans above ₹ 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 (₹ 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.

Your net monthly income (take home salary after all deductions like PF, ESI, gratuity) determines your home loan servicing capacity. It determines how much EMI you are capable of paying after meeting your monthly expenses. Some of the examples of loan amount eligibility for different income and different age group are as follows assuming you have no EMIs to pay and the interest rate on the loan starts at 6.95%.

Age	Net Monthly Income (₹)
	25,000	50,000	75,000
25 years	49.10 Lakh	73.65 Lakh	98.20 Lakh
30 years	49.10 Lakh	73.65 Lakh	98.20 Lakh
35 years	46.19 Lakh	69.29 Lakh	92.38 Lakh
40 years	42.08 Lakh	63.12 Lakh	84.16 Lakh
45 years	36.27 Lakh	54.41 Lakh	72.54 Lakh
50 years	28.05 Lakh	42.08 Lakh	56.11 Lakh

Your age plays an important role in determining your eligibility and repayment capacity for home loan. Lower your age, higher will be the tenure of the loan, and hence higher loan amount eligibility. The minimum age limit to get a home loan is 18 years of age at the time of loan commencement. Banks offer home loans for a maximum period of 30 years subject to the condition that the borrower’s age at the end of the tenure must not exceed 30 years for salaried borrowers and 30 years for self employed borrowers. The maximum tenure of loan that you may be eligible for will be as follows

Age	Maximum Tenure for Salaried	Maximum Tenure for Self Employed
25 years	30 years	30 years
35 years	25 years	30 years
45 years	15 years	20 years
50 years	10 years	15 years

Borrowers can check home eligibility online using a Home Loan eligibility calculator by entering details such as loan tenor, net monthly salary, existing obligations or EMIs etc. They can use the Home Loan Eligibility Calculator on our website to calculate the loan amount that they can borrow from different lending institutions.

There are several factors that determine the borrower's eligibility for a home loan. Some of them are mentioned as below:

1. Age: The age of the borrower determines the maximum tenure of a home loan. The young applicant can avail a home loan for a maximum tenure of 30 years.To avail a home loan, your age should be above 21 years at the time of availing the loan, and it cannot be more than 30 years at the end of its tenure.
2. CIBIL Score: The CIBIL score also determines the borrower's eligibility for a home loan. A credit score of 750 or above is considered an ideal score for availing a home loan. However, some banks give home loans at a credit score of 650 and above.

3. Profession: Both self-employed and salaried individuals can avail a home loan. However, the interest rates are generally lower for salaried applicants.
4.Income: Income is one of the crucial factors that affect the home loan eligibility of the borrower. For salaried persons, regular and timely salary credit is essential for loan eligibility. Also, to improve home loan eligibility, you can add an earning family member as a co-applicant.
5. LTV and Property Value: If the market value of your property is high, then there are more possibilities of getting a home loan of a higher payment. Loan to Value Ratio also determines the Loan amount. As per the RBI guidelines, borrowers can get a maximum LTV of 90% on a home loan.

• 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 ₹ 30,000 and the loan amount you are eligible for is ₹ 15 Lakh, If you add your spouse as co-applicant, earning ₹ 20,000 per month, can increase your eligibility to ₹ 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 ₹ 35,000 per month and you have a credit card outstanding of ₹ 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 ₹ 60 Lakh, His net income is ₹ 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	₹ 56.12 Lakh for 30 years	6.95%	₹ 37,145
HDFC	₹ 43.17 Lakh for 30 years	6.95%	₹ 28,573
ICICI Bank	₹ 56.52 Lakh for 30 years	6.90%	₹ 37,225
Axis Bank	₹ 54.93 Lakh for 30 years	7.10%	₹ 36,914
PNB Housing Finance	₹ 45.35 Lakh for 30 years	8.60%	₹ 35,191
DBS Bank	₹ 53.42 Lakh for 20 years	7.30%	₹ 42,388
DHFL	₹ 44.57 Lakh for 30 years	8.75%	₹ 35,064
IDBI Bank	₹ 52.70 Lakh for 30 years	7.40%	₹ 36,490
IDFC Bank	₹ 43.33 Lakh for 30 years	9.00%	₹ 34,867
Indiabulls	₹ 35.68 Lakh for 25 years	9.25%	₹ 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 ₹ 56.52 Lakh is ICICI Bank.
• Minimum eligibility of ₹ 35.68 Lakh is offered by Indiabulls.
• EMI amount ranges from ₹ 28,573 to ₹ 42,388 at different interest rates offered by banks.

✅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 ₹ 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 ₹ 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 ₹ 66,00,000. Now, if you do not have any other EMI going on, then the maximum amount you can pay each month is ₹ 30,000*50% = ₹ 15,000.
If you choose the tenure to be 30 years, then as per FOIR, your loan amount = ₹ 15,000*12*30 = ₹ 54,00,000. However, LTV is ₹ 66,00,000*90% = ₹ 59,40,000. So, the loan you can get on ₹ 30,000 salary is ₹ 54,00,000.

✅How much home loan can I get on ₹ 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 ₹ 80,00,000. Now, if you do not have any other EMI going on, then the maximum amount you can pay each month is ₹ 70,000*50% = ₹ 35,000.
If the tenure for home loan is 30 years, then as per FOIR, your loan amount = ₹ 35,000*12*30 = ₹ 12,60,00,000. However, LTV is ₹ 80,00,000*85% = ₹ 68,00,000. So, the loan you can get on ₹ 70,000 salary is ₹ 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
₹ 50,000	₹ 90,00,000
₹ 75,000	₹ 1,35,00,000
₹ 1,00,000	₹ 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.

Nowadays, almost all banks offer attractive schemes on Home Loan at competitive rates with many customer friendly features. You can do rates comparison, check your eligibility, calculate EMI, apply online and get the best Home Loan rates. MyLoanCare helps you throughout the loan process from the day you apply to the time you get disbursement. You can register with us, track your loan status on a regular basis and get an option to earn attractive cashbacks and refer and earn benefits.