How Do I Check My Home Loan Eligibility?

The decision to purchase a home can be daunting, especially if you are taking a loan. If you are buying a home on loan for the first time, you should be concerned about your eligibility. A bank usually assesses your eligibility based on specific parameters. 


You can quickly Check Your Home Loan Eligibility using the Home Loan eligibility calculator offered by many banking and financial institutions. These calculators are designed to evaluate the creditworthiness of loan applicants. They use an algorithm to calculate your Home Loan eligibility based on certain factors. 


This blog post will discuss these factors in detail and tell you the steps for calculating your eligibility. In the end, we will also share a few tips on how you can enhance your eligibility for a Home Loan. 


What is Exactly Home Loan Eligibility?

Before purchasing your dream home, you need to secure a Home Loan if you don’t have enough amount saved. For that, you need to be an eligible candidate for the bank. Home Loan eligibility is a term used to specify all the criteria the applicant must fulfil to attain a loan. 

The eligibility criteria are as follows: 

  1. You need to be an Indian national. However, some banks also allow NRIs to apply for a Home Loan. 
  2. Your age must be between 21-65 years of age. 
  3. You must have a salaried income or be self-employed with a stable income source.
  4. In the case of a co-applicant, their age cannot be lower than 18 years of age. 

By fulfilling all of the criteria given above, you can qualify to apply for a Home Loan. However, banks use other factors to assess your creditworthiness before sanctioning your application. 

Factors that Determine Your Eligibility For a Home Loan

Your bank values you as a customer. But it will still consider several factors before sanctioning your application for a Home Loan. It considers these procedures as its due diligence that will ensure low-risk investments. The following are the significant factors that may influence your eligibility for a Home Loan: 

  • Age

Your age is one of the determining factors for the loan amount you receive and the tenure you receive it for. If you are a young person with years of employment ahead of you, the banks will deem you a good borrower. It is so because you will have more income-generating years than a person nearing retirement age. Therefore, it lessens the chance of you defaulting on your loan payments. An older person can also get a Home Loan, but that individual may have a short tenure to repay the loan. 

  • The Status of Your Employment

The banks will also consider your employment record. The banks will happily oblige with your loan application if you are employed at a reputed company with a good salary. However, the bank may decline your application if you have gaps in your employment records or change your jobs too frequently. 

  • Your Credit History

When you apply for a Home Loan, the bank will ask for certain documents we will get into later. These documents will give your bank insight into your spending habits and debt payment history. For example, suppose you had once defaulted on a small amount for your credit card repayment, and this small error could tank your credit score and jeopardise your loan application. So before you Check Home Loan Eligibility, check your credit score to see if it is to a bank’s liking. 

  • Your Income Versus Your Expenses

Banks will consider your payment obligations against your income even if you receive a good salary. If you have other loan repayments every month, you will have less money to pay for this new loan. After paying for all of these and other monthly expenses such as rent, food, clothing, etc., your loan application may be granted if you have 60% of your income still left with you. 

How Can You Calculate Your Home Loan Eligibility?

Any financial institution like a bank will calculate your eligibility for a Home Loan based on your income against your expenses. Besides this, there are other considerations, such as: 

  1. Your present age and the remaining years of employment before retirement. It is vital because the tenure of a Home Loan is a crucial variable. 
  2. Your salary plays a vital role as well. After deducting about 40% of your monthly income for living expenses, your remaining income can be used for your EMI payments. 
  3. The total number of years you have been working must also be a part of your eligibility calculations. Since most banks need at least some years of work experience before you can apply for a Home Loan, you should be aware of this fact. 
  4. If you own a business, you need proof to show the income stability of that business. 

Remember these while checking out your bank’s website for a Home Loan. First, you will find a link on the website saying, “Home Loan apply online“. Click on this, and you will find a Home Loan eligibility calculator where you need to put in your monthly income, your expenses, including other EMI payments, and your tenure. Next, the calculator will tell you how much interest rate the bank will apply on the loan and the monthly instalments you must pay. 

Steps to Use the Home Loan Eligibility Calculator

Every bank has its eligibility calculator, they function virtually the same way. 

  1. First, you need to go to the bank’s website and access the calculator by clicking on a link that says, “Home Loan apply online“. 
  2. Then select your pin code to indicate your place of residence to the calculator.
  3. The next step is to type in the location of the house you are looking to buy and hit “Proceed”.
  4. Type in your basic details and again hit the “Proceed” button. 
  5. Choose your type of employment from a drop-down menu. 
  6. Type in your gross and net monthly income. 
  7. Mention any ongoing loan repayments. 
  8. Type in the name of your employer company.
  9. Select the total years you have worked and hit “Proceed”.
  10. The calculator will tell you the total amount of loan you can get and the EMI you need to pay. 

How to Increase Your Eligibility for a Home Loan?

If you are ineligible for a Home Loan now, you don’t need to wait to get a better-paying job before applying. You can simply adopt the following strategies to improve your eligibility. 

  1. You can add a co-applicant. 
  2. Select a longer tenure for repayment. 
  3. You might have other sources of income, like the interest gained from Fixed Deposits (FDs) or others. 
  4. If you have ongoing loans, repay them to enhance your credit score and EMI amount. 


Lastly, it is easy to become eligible for a Home Loan. You need to have a stable source of income and keep your expenses in check. There are also ways to improve your chances of securing a loan by following strategies. Thus, there is no need to delay fulfilling your wish for a dream home. Visit your bank’s website today and check your Home Loan eligibility. 


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