18 June 2024
hosuing loan

Taking a home loan can be a good option if you are looking for financial assistance to buy a home. Most financial institutions require only minimum eligibility and provide you with a home loan at a reduced interest rate. However, to enjoy the best interest rate, you need to score well on credit rating, age, income, financial obligations, etc. For calculation, you can take the assistance of a home loan eligibility calculator. The steps on how to calculate it are down here.

What are the steps to calculate housing loan eligibility?

The steps to calculate your home loan eligibility using a calculator are very simple. It just needs you to follow these five points:

Step 1: Visit the online housing loan eligibility calculator.

Step 2: Fill in the required details like your address, location, date of birth and others.

Step 3: Next, provide your salary details by mentioning the figure in the bar.

Step 4: The calculator will show you the EMI amount, which you can either pay exactly or reduce it.

Step 5: You can also enter the tenor in which you want to pay off your home loan to find the best data.

What are the different eligibility criteria on which calculation depends?

The home loan eligibility criteria differ for a salaried individuals and for self-employed. So, to find the information applicable to you, look under the appropriate heading:

Salaried employees

If you are a salaried employee, your basic eligibility requirement includes:

  • You must be a resident of India
  • Your age must fall under the age gap of 23 to 62 years
  • You must possess a work experience of a minimum of three years

Self-employed individuals

If you are a self-employed individual, here are some common eligibility criteria for you:

  • You must be an Indian citizen
  • You must be between 25 and 70 years
  • Your business should possess at least 5 years of company history

What factors can affect your home loan eligibility?

Several factors can affect your home loan eligibility which lets lenders decide whether or not to approve your home loan. The common ones are below:


To get a home loan, you need to be either a salaried employee working at a private company, MNC or public sector company. However, lenders can also provide you with a housing loan if you are self-employed (working as a doctor, chartered accountant or businessman, etc.)


Many institutes have a minimum earning requirement based on different income slabs. So, you must meet the given requirement to get a home loan from them. This is also because it will point towards your capability of committing to an EMI amount.

Credit score

Your credit report contains your CIBIL or credit score to determine your home loan EMIs. In addition, it shows how well you have performed in paying back your loan. So, you must possess a score of 750 or above to improve your chances of home loan eligibility.

LTV & property value

If the property market value against which you are taking a loan is high, the chances of home loan approval also increase. To make the process even faster, you also make a 20% down payment.

Once you have calculated your eligibility and figured that you satisfy all the eligibility criteria, you can apply for the process through a financial institute for a home loan. However, if you are looking for a time-saving and hassle-free service, you can also check the pre-approved offer provided by these financial institutes.

It makes getting different loans, like loans against property, home loans or others, straightforward.

Check out the information given in the above headings to know all details relating to housing loans. Even you can find out how to calculate eligibility using a home loan eligibility calculator in five easy steps. It will allow you to avoid the financial burden created by monthly EMI.

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