Tips To Calculate Home Loan Eligibility On Your Own

Tips To Calculate Home Loan Eligibility On Your Own

Mumbai, October 15, 2022

Lending institutions provide loans to customers only when they are convinced that the borrower will repay the loan on time without fail. There are various parameters to decide whether a person is eligible for a home loan. The eligibility criteria for every lender vary. Customers need not personally visit the bank or financial institution to check if they are eligible for a loan. Most loan providers have online portals with a home loan eligibility calculator.

Steps to Calculate Eligibility for a Home Loan

Home loans are borrowed for a longer period compared to other loans. As there is a long-term commitment, it is best to know the eligibility criteria before applying for a loan. Calculating the eligibility beforehand makes the application process quicker. 

You can calculate the eligibility for a home loan on your own with a few details.

●       The first requirement is that the age should be between 18 and 60 years for salaried people and between 18 to 65 years of age for self-employed people.

●       Make sure you have a good income flow.

●       One must be salaried or self-employed to get the loan.

●       You must not have high current monthly obligations.

 If you are a working professional aged 25 with a monthly minimum income of ₹20,000 and a credit score of 750, you have a high chance of being eligible for a loan. The eligibility criteria, however, differs depending on the lender, so the manual calculation may not be accurate. The borrower’s application is analysed, and the loan is given after checking the credit profile.

Calculating Home Loan Eligibility Using an Online Calculator

Manual calculations do not work well in checking your home loan eligibility. There are multiple variables which change with every lender. Calculating your home loan eligibility with the help of an online calculator will give accurate results, more so if you are willing to take loans from the same lender. The online home loan eligibility calculator requires the following information: 

●       Employment status: salaried or self-employed person

●       Whether you are a new or existing customer of the bank

●       Monthly in-hand salary

●       Current monthly payments

●       Desired tenure of the loan

●       Current interest rate

 Submitting accurate information will provide more precise results. With this simple online check, you can determine loan eligibility.

Benefits of Using an Online Calculator to Calculate Home Loan Eligibility

As discussed above, online loan calculators are more accurate than manual eligibility checks. The loan eligibility calculator makes it easier to check who is eligible for the loan and how to improve your credit profile. A few reasons why you should use an online home loan eligibility calculator are: 

●       Accurate results as there are no mistakes or confusion

●       Saves time and effort

●       There are no loan rejections. You can improve your profile even if you are not eligible for the loan.

Factors Affecting Home Loan Eligibility 

Age limit

The lenders set the age limit to determine the time you have until retirement to repay the loan. A person aged 67 is mostly not eligible for a home loan as the working capacity is deemed low. 

Monthly income

The loan provider will state the minimum income requirement. Where monthly income does not meet the said limit, such persons will not be eligible for the loan. 

Credit score

The creditworthiness of a borrower is the main concern of a lender. A high credit score allows a person a low housing loan interest rate and other benefits. The credit score is one of the easiest ways to determine an individual's financial health. 

Employment status

Similar to the income proof requirement, your employment status is also needed. The type of employment also determines your credibility with the loan providers. A stable source of income will help in the timely payment of loan instalments even when the housing loan interest rate is a little higher. 

Current Equated Monthly Instalments (EMIs)

A person with existing debt is eligible to take a new loan. However, if the dues are unpaid or there are delays in payments, it will affect the loan eligibility. Unpaid dues will be reflected in your credit profile and reduce your credit score.


Using the home loan eligibility calculator, you can easily check your home loan eligibility. Use the online calculator to check if you are eligible for the dream home loan you want before applying for a loan and save your loan application from getting rejected.

(Disclaimer: This is branded content. Readers are advised to exercise due diligence and discretion before entering into any correspondence, investment, purchase, business dealings or any other decision on the basis of this content.)


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