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Home Loan Eligibility Calculator
Calculate the Home Loan amount you are eligibile for
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What is Home Loan Eligibility?
Home loan eligibility means the criteria that lenders look at to decide if you are eligible for a home loan and the maximum amount you can borrow. To make it easier for you to find out whether or not you are qualified for the home loan or a home loan balance transfer, we have designed a home loan eligibility calculator. home loan balance transfer we have designed a home loan eligibility calculator.
What is the Home Loan Eligibility Criteria?
● You need to be an Indian citizen to apply for the loan
● Must have stable and sufficient income to repay EMIs
● Be at least 21 years old at the time of application.
● Maximum age at loan maturity should be 60 years for salaried individuals and 70 years for self-employed individuals.
● A CIBIL score of 650 and above preferred (individuals with no credit history can also apply).
● Total EMIs should ideally be less than 50% of your monthly income.
● The property's location, condition, and legal status will also determine your eligibility for a home loan
Note: Eligibility criteria are indicative. Final approval will depend on your loan application and assessment by the lender.
● Must have stable and sufficient income to repay EMIs
● Be at least 21 years old at the time of application.
● Maximum age at loan maturity should be 60 years for salaried individuals and 70 years for self-employed individuals.
● A CIBIL score of 650 and above preferred (individuals with no credit history can also apply).
● Total EMIs should ideally be less than 50% of your monthly income.
● The property's location, condition, and legal status will also determine your eligibility for a home loan
Note: Eligibility criteria are indicative. Final approval will depend on your loan application and assessment by the lender.
How is Home Loan Eligibility Calculated?
The calculation of home loan eligibility is done based on several factors like your income, age, credit score, existing EMI load and ability to repay. This helps the lender figure out if you are eligible for the loan and how much can be lent to you.
Here is a quick example:
● Monthly income - ₹80,000
● Monthly expenses - ₹40,000
● Occupation - Salaried
● EMI that you can pay - ₹40,000
With these details, the Home Loan Eligibility Calculator will show that the loan amount you can get would be ₹26.67 lakhs. If your income increases to ₹1 lakh, the loan amount would increase to ₹43.34 lakhs.
Here is a quick example:
● Monthly income - ₹80,000
● Monthly expenses - ₹40,000
● Occupation - Salaried
● EMI that you can pay - ₹40,000
With these details, the Home Loan Eligibility Calculator will show that the loan amount you can get would be ₹26.67 lakhs. If your income increases to ₹1 lakh, the loan amount would increase to ₹43.34 lakhs.
How Home Loan Eligibility Calculator Works?
An online loan eligibility calculator eliminates the need for the applicants to verify each of the eligibility guidelines of the lender manually. It is a simple online tool that requires them to provide some basic details, like monthly income, additional income, loan tenure, city of property, current liabilities, occupation, etc. to provide instant confirmation of their loan qualification.
Beneath the user-friendly interface, the calculator uses a mathematical formula based on the pre-set eligibility requirements of the lender. It calculates the input from the applicants based on these parameters to provide instant results.
Beneath the user-friendly interface, the calculator uses a mathematical formula based on the pre-set eligibility requirements of the lender. It calculates the input from the applicants based on these parameters to provide instant results.
What Factors Determine Home Loan Eligibility?
As mentioned above, the home loan criteria can vary between lenders. However, every lender in India does verify these common factors-
Lenders primarily confirm home loan eligibility based on salary. After all, you will only be able to pay the monthly EMIs if you can afford them conveniently. Most lenders require applicants to have a minimum monthly income of Rs. 25,000. This limit can vary between lenders. Also, this limit can be higher in case if you are a self-employed professional.
Applicants above 21 years are eligible for home loans in India. The upper age limit is usually 60. Self-employed professionals might enjoy a higher upper age limit. The upper age limit is usually not the age at which you can apply for the loan but the age at which you can finish the loan. Younger applicants are usually able to apply for home loans with a longer repayment tenure. For instance, if you apply for a home loan at the age of 45, you might only get a tenure of 15 years until you turn 60.
The credit score is an excellent way for the lender to ensure whether or not an applicant is a responsible borrower. A credit score is a 3-digit number calculated by credit bureaus like CIBIL based on credit history. In India, most lenders prefer applicants with a CIBIL score of 650 and above. Higher credit score also makes it possible for the applicants to get a home loan at a slightly better rate.
If an applicant is already repaying an existing loan, this can also impact their loan eligibility. Lenders consider something known as the 'debt-to-income' ratio of the applicants. In most cases, the debt-to-income ratio of the applicants should be lower than 50%. This means that the current liabilities of an applicant should only consume up to 50% of their monthly income to be eligible for the home loan.
Even the location and age of your property would be taken into consideration. If it is an under-construction property, the developer would also be verified. The lenders often blacklist developers with a reputation for not completing their projects on time. They do not offer loans to applicants wanting to purchase a home in any project by such developers.
Monthly Income
Lenders primarily confirm home loan eligibility based on salary. After all, you will only be able to pay the monthly EMIs if you can afford them conveniently. Most lenders require applicants to have a minimum monthly income of Rs. 25,000. This limit can vary between lenders. Also, this limit can be higher in case if you are a self-employed professional.
Age
Applicants above 21 years are eligible for home loans in India. The upper age limit is usually 60. Self-employed professionals might enjoy a higher upper age limit. The upper age limit is usually not the age at which you can apply for the loan but the age at which you can finish the loan. Younger applicants are usually able to apply for home loans with a longer repayment tenure. For instance, if you apply for a home loan at the age of 45, you might only get a tenure of 15 years until you turn 60.
Credit Score
The credit score is an excellent way for the lender to ensure whether or not an applicant is a responsible borrower. A credit score is a 3-digit number calculated by credit bureaus like CIBIL based on credit history. In India, most lenders prefer applicants with a CIBIL score of 650 and above. Higher credit score also makes it possible for the applicants to get a home loan at a slightly better rate.
Current Liabilities
If an applicant is already repaying an existing loan, this can also impact their loan eligibility. Lenders consider something known as the 'debt-to-income' ratio of the applicants. In most cases, the debt-to-income ratio of the applicants should be lower than 50%. This means that the current liabilities of an applicant should only consume up to 50% of their monthly income to be eligible for the home loan.
Property Details
Even the location and age of your property would be taken into consideration. If it is an under-construction property, the developer would also be verified. The lenders often blacklist developers with a reputation for not completing their projects on time. They do not offer loans to applicants wanting to purchase a home in any project by such developers.
How to Enhance Home Loan Eligibility?
Looking for ways to improve your home loan eligibility? These tips can help-
● Improve Your Debt-to-Income Ratio: Pay off existing loans or reduce your EMIs to keep your debt-to-income ratio below 40%, improving your chances of loan approval.
● Add a Co-Applicant: Applying with a working spouse or eligible family member can increase your combined income and improve your home loan eligibility.
● Maintain a Good Credit Score: Pay loan EMIs and credit card bills on time to keep your credit score high. Avoid applying for multiple loans at once.
● Make a Higher Down Payment: Making a larger down payment lowers the loan amount required, making lenders more likely to approve your application.
● Choose a Longer Loan Tenure: A longer repayment tenure reduces your monthly EMI, improving your repayment capacity and overall loan eligibility.
● Improve Your Debt-to-Income Ratio: Pay off existing loans or reduce your EMIs to keep your debt-to-income ratio below 40%, improving your chances of loan approval.
● Add a Co-Applicant: Applying with a working spouse or eligible family member can increase your combined income and improve your home loan eligibility.
● Maintain a Good Credit Score: Pay loan EMIs and credit card bills on time to keep your credit score high. Avoid applying for multiple loans at once.
● Make a Higher Down Payment: Making a larger down payment lowers the loan amount required, making lenders more likely to approve your application.
● Choose a Longer Loan Tenure: A longer repayment tenure reduces your monthly EMI, improving your repayment capacity and overall loan eligibility.
How Can a Home Loan Eligibility Calculator Help You?
- Estimates Affordability
Quickly provides an estimate of the maximum loan amount you can likely qualify for based on your income, expenses, and credit score. - Financial Planning
Helps you understand how much you can realistically borrow, allowing for better financial planning and budgeting for your home purchase. - Scenario Analysis
Allows you to experiment with different loan amounts, tenures, and interest rates to see how they impact your monthly payments (EMI) and overall loan cost. - Improved Application Preparedness
Helps you understand the factors lenders consider, allowing you to improve your credit score or reduce debt before applying for a loan. - Saves Time and Effort
Provides a preliminary assessment without requiring you to contact multiple lenders or go through lengthy application processes.
How to Apply for a Home Loan
Here are the steps a person needs to follow to apply for a home loan-
The first step an applicant needs to take is filling out the application form. In this form, the applicant will be asked to enter his/her name, income details, address, education information, employment details, contact number, etc.
The applicant will need to submit necessary documents, like the salary slips, employment proof, ITR, bank statements, etc.
The applicant will also be required to pay the initial processing fee. This fee is determined by the bank.
After the processing fee is paid, the lender will contact the applicant for a discussion.
After the discussion, the lender will check the applicants eligibility. They will verify the documents submitted by the lender.
In case the documents are correct and the applicant meets the eligibility requirements, the lender will send a loan sanction letter to the applicant. This letter will mention the approved loan amount, interest rate and its type, and loan tenure. If the applicant has no problems with the details mentioned in the letter, then he/she needs to accept it and provide a signed copy to the lender.
After the loan is approved, the lender will check the property to make sure there are no issues with the property.
After the verification of the property is done, the loan agreement will be signed, and the loan amount will be disbursed.
1. Fill out the Application Form
The first step an applicant needs to take is filling out the application form. In this form, the applicant will be asked to enter his/her name, income details, address, education information, employment details, contact number, etc.
2. Submit the Necessary Documents
The applicant will need to submit necessary documents, like the salary slips, employment proof, ITR, bank statements, etc.
3. The Payment of Processing Fee
The applicant will also be required to pay the initial processing fee. This fee is determined by the bank.
4. Discussion with the Lender
After the processing fee is paid, the lender will contact the applicant for a discussion.
5. Verification of Documents
After the discussion, the lender will check the applicants eligibility. They will verify the documents submitted by the lender.
6. Sanction Letter
In case the documents are correct and the applicant meets the eligibility requirements, the lender will send a loan sanction letter to the applicant. This letter will mention the approved loan amount, interest rate and its type, and loan tenure. If the applicant has no problems with the details mentioned in the letter, then he/she needs to accept it and provide a signed copy to the lender.
7. Verification of Property
After the loan is approved, the lender will check the property to make sure there are no issues with the property.
8. Loan Disbursal
After the verification of the property is done, the loan agreement will be signed, and the loan amount will be disbursed.
Using a Home Loan Eligibility Calculator to Confirm Loan Eligibility
No matter if an applicant is browsing through lenders or has already made a decision, a home eligibility calculator can be an excellent first step towards achieving the dream of being a homeowner. It can help borrowers confirm their eligibility and even know the loan amount they are eligible for.
Based on the result, applicants can then go ahead and get in touch with the lender to formally initiate the loan application process or work their way around improving their eligibility.
Based on the result, applicants can then go ahead and get in touch with the lender to formally initiate the loan application process or work their way around improving their eligibility.
What Is a Home Loan Amortisation Schedule?
A home loan amortisation schedule details your EMI payments, showing the amount that goes toward interest and principal over time.
Higher interest, lower principal repayment.
Lower interest, higher principal repayment.
Helps with financial planning, prepayments, and loan comparisons.
With ABCD, you can access the real-time amortisation schedule to track your loan effortlessly.
To better understand the home loan EMI journey, here is a 5-year amortisation table for a ₹20 lakh home loan with a 20-year tenure at 8.5% interest:
Early Years
Higher interest, lower principal repayment.
Later Years
Lower interest, higher principal repayment.
Benefits
Helps with financial planning, prepayments, and loan comparisons.
With ABCD, you can access the real-time amortisation schedule to track your loan effortlessly.
Amortisation Table
To better understand the home loan EMI journey, here is a 5-year amortisation table for a ₹20 lakh home loan with a 20-year tenure at 8.5% interest:
| Year | EMI for 12 months (₹) | Interest in a year (₹) | Principal in a year (₹) | Closing Balance (₹) |
| 1 | ₹2,08,278 | ₹1,39,909 | ₹3,447 | ₹19,60,195 |
| 2 | ₹2,08,278 | ₹2,21,882 | ₹17,661 | ₹19,16,872 |
| 3 | ₹2,08,278 | ₹4,29,828 | ₹2,39,875 | ₹18,69,720 |
| 4 | ₹2,08,278 | ₹6,37,745 | ₹6,70,064 | ₹18,18,400 |
| 5 | ₹2,08,278 | ₹8,45,629 | ₹13,08,201 | ₹17,62,544 |
ABCD’s Flexible Repayment Plans for Better Loan Eligibility
Step-Up repayment Plan
Start with lower EMIs that gradually increase as your income grows, helping you manage repayments comfortably while improving your loan eligibility.
Step-Down repayment Plan
Pay higher EMIs in the initial years and lower EMIs later, making repayments more manageable as your financial priorities evolve.
Balloon Payment Plan
Enjoy lower EMIs throughout the loan tenure with a larger lump sum payment at the end, offering greater flexibility in repayment.
Floating Rate EMI
Benefit from EMIs that adjust according to changes in interest rates, allowing your repayments to reflect current market conditions.
Overdraft Facility
Park surplus funds in your loan account to reduce the outstanding balance and save on interest while retaining access to your funds when needed.
Planning to buy your dream home? Find out what Home Loan offers by Aditya Birla Capital can do for you. Get affordable home loans with low-interest rates and convenient repayment options. Try the Home Loan EMI Calculator to calculate the EMI on your home loan and to make the comparison between different repayment plans.
Final Word
A home loan is a big commitment—so, plan it wisely! Use ABCD’s Home Loan EMI Calculator to:
● Understand your EMI & repayment structure
● Compare loan options
● Plan prepayments smartly
With ABCD, get easy loan management, flexible repayment, and full financial control.
● Understand your EMI & repayment structure
● Compare loan options
● Plan prepayments smartly
With ABCD, get easy loan management, flexible repayment, and full financial control.
Home Loan Eligibility Calculator FAQs (Frequently Asked Questions)
What is Home Loan Eligibility Based on Salary?
Salary is one of the critical elements that will decide whether you qualify for a home loan. Higher and steady salary means better chances of getting a loan. For instance, an individual who earns ₹75,000 per month can borrow more money than an individual who earns ₹50,000 per month, under all other equal conditions.
What is Home Loan Eligibility Based on Age?
Age influences not only your eligibility to receive a home loan but also the repayment tenure Usually, the loan is required to be repaid by the borrower’s retirement age, which is around 58-60 years for salaried individuals, or 65-70 years for self-employed individuals.
Now lets understand with easy example:
At the age of 30 years, one can opt for a loan repayment period of 30 years, while an individual at 45 years gets only 15 years to repay the loan.
What is Pre-EMI Interest?
If a borrower avails a part of his/her home loan, then he/she will be required to pay interest on that amount until the entire loan amount is disbursed. This payment of interest on the part loan payment is called Pre-EMI interest.
What security is required for a home loan?
In most instances, the asset acquired acts as the main form of collateral for the home loan. The bank puts a mortgage on the asset that stays until the loan is paid off. Any other forms of security that may be required depending on terms of lending bank.
What is the minimum CIBIL score for a home loan?
Normally, most financial institutions require a minimum CIBIL score of 650 for granting home loans. Even though some financial institutions can accept applications with lower CIBIL score less than 650, having higher cibil score means better chances of securing a home loan.
Does my existing loan affect home loan eligibility?
Yes, the existence of other loans and the repayment of EMIs impacts the eligibility for a home loan since it increases your debt-to-income ratio. The lesser the financial burden, the better will be your capacity to repay the home loan.
DisclaimerThe information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.