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Home Loan Eligibility Calculator

By simply entering a few basic details about yourself like salary, city of residence, employment type, etc., the calculator will determine whether you are eligible for a home loan or not. The application will give you a list of home loans that you are eligible for.

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Home Loan Eligibility Criteria

Factors Eligibility Criteria
Age Minimum: 18 yrs. Maximum: 70 yrs. (depending on the type of employment)
Annual Income Minimum annual income usually ranging between Rs.5-7 lakh (depending on the type of employment)
Type of Employment Salaried, Salaried Professional, Self Employed Business, Self Employed Professional, Student, Retired, and Homemaker
Status of Employment Regular: at least 1 yr. in current job/business/profession.; at least 2 yrs. of prior employment
Type of Residence Permanent residence or a rented residence where the applicant has resided for at least one year prior to applying for home loan
Credit Score A credit score between the range 750 and 800 obtained from a recognized credit bureau is considered to be a good score, depending on the bank you are applying at.
Type of property being purchased Completed Project, Under Construction Project, Land/Plot, Build on own Land, Buy Land and Build Home

Note:

  • Loan eligibility criteria differ for each banks/lender.
  • Approvals are based on borrowers' incomes, credit profiles and existing relationships with the bank.

Home Loan Eligibility details for Different Banks in India

Bank Name Loan Amount Loan Tenure Age
SBI Home Loan Rs.1 lakh to Rs.10 crore 1 to 30 years 18 to 70 years
HDFC Bank Rs.5 lakh to Rs.10 crore 1 to 30 years 24 to 60 years
ICICI Bank Rs.5 lakh to Rs.10 crore 3 to 30 years 21 to 60 years
Axis Bank Rs.5 Lakh to Rs.5 crore 1 to 20 years 24 to 60 years
Indiabulls Rs.2 lakh to Rs.3 crore 1 to 30 years 21 to 65 years
DHFL Bank Rs.1 lakh to Rs.5 crore 1 to 30 years 21 to 65 years
PNB Housing Finance Rs.8 lakh and above 1 to 30 years 21 to 70 years
Kotak Mahindra Bank Up to Rs.5 Crore 1 to 20 years 21 to 60 years
Karnataka Bank Rs.20 lakh to Rs.5 crore 1 to 30 years 21 to 60 years
Yes Bank Rs.10 lakh to Rs.5 crore 1 to 30 years 21 to 60 years
LIC Housing Finance Rs.30 lakh to Rs.5 crore 5 to 30 years 21 to 60 years
Sundaram BNP Paribas Home Finance Rs.12 lakh to Rs.5 crore 1 to 20 years 18 to 65 years
DBS Bank Rs.50 lakh to Rs.5 crore 1 to 25 years 21 to 60 years
Aditya Birla Capital Rs.20 lakh to Rs.10 crore 1 to 30 years 23 to 60 years
IDFC Bank Rs.30 lakh and above 5 to 30 years 21 to 60 years
Federal Bank Up to Rs.15 crore 1 to 30 years 21 to 60 years
Andhra Bank Up to 90% of the property value 1 to 30 years 21 to 65 years
Dhanalakshmi Bank 85% of the property value 3 to 20 years 21 to 60 years
Bank of Baroda Rs.1 lakh to Rs.2 crore 1 to 30 years 21 to 60 years
Bank of India Up to Rs.5 crore 1 to 30 years 21 to 60 years
Bank of Maharashtra Up to Rs.10 Cr 1 to 30 years 21 to 60 years
Canara Bank Up to Rs.10 Cr 1 to 30 years 21 to 55 years
Dena Bank Up to Rs.20 crore 1 to 30 years 21 to 60 years
IDBI Bank Up to Rs.10 Cr 1 to 30 years 22 to 70 years
Indian Overseas Bank Up to Rs.5 Cr 1 to 30 years 21 to 60 years
Karur Vysya Bank Up to Rs.5 Cr 1 to 25 years 21 to 60 years
South Indian Bank Up to Rs.5 Cr 1 to 30 years 21 to 65 years
Tamilnad Mercantile Bank Up to Rs.5 crore 1 to 30 years 18 to 50 years
Central Bank of India Rs.20 lakh to Rs.75 lakh 1 to 30 years 18 to 60 years
India Shelter Finance Corporation Up to Rs.20 lakh 1 to 20 years 21 to 65 years
Aavas Financiers Limited Minimum Rs.1 Lakh 1 to 20 years 18 to 65 years
Reliance Home Finance Limited Up to Rs.5 Cr 1 to 30 years 21 to 60 years
Tata Capital Limited Up to Rs.3 crore 1 to 30 years 21 to 65 years
Jammu And Kashmir Bank Up to Rs.50 lakh 1 to 30 years 21 to 60 years

Example of Home Loan Eligibility Calculation

Chandra Patra is an employee of a leading company in India. His salary break up is mentioned below:

Income Amount Deductions Amount
Basic 32,000 Income Tax 3,300
HRA 900 Provident Fund 2,200
Conveyance 10,000 ----- -----
LTA 9,000 ----- -----
Special Allowance 55,000 ----- -----
Medical expenses 2,000 ----- -----
Total 1,08,900 Net Income 1,03,400

Let us consider that Chandra has no loans or liabilities at present and his net available income is Rs.1,03,400. However, you one must always remember that Leave Travel Allowance is not taken into consideration by the bank while calculating the salary. The medical allowance is also excluded from the calculation. This is because, these expenses are not derived by an individual with his/her salary. In this case, Chandra will only get these amounts as reimbursements, in case he spends on medical needs or travel requirements.

Thus, the bank or the lender will deduct that LTA and medical expenses from the net income. Chandra’s net income now stands at Rs.1,03,400 – Rs.(9,000 + 2,000), which is equal to Rs.92,400. Thus, the loan eligibility for Chandra Patra stands at Rs.92,400 x 60 = Rs.55,44,000. In case of a home loan, EMI is restricted to a maximum of 40% to 50% of the net income (monthly) by most banks. This suggests that you are eligible for a home loan where the equated monthly instalment is not more than 50% of your monthly income.

Top 6 Factors Affecting Home Loan Eligibility

1) Age: It is the first and foremost factor a lender/ financier considers when one applies for a housing loan. Normally, financial institutions attempt to limit the house loan term to the primary applicant's age of superannuation. This means young professionals (20s and early 30s) can avail a loan with a term of up to 25 years with no trouble. But older applicants especially those beyond 40 can find it a tad tough to be eligible for an extended tenure. Many a time, single applicant aged 50 and above were denied home loans purely on this basis.

2) Income: Let us categorize this into salaried, professional and self-employed. Whichever category the applicant falls into, a steady and regular source of income is must. Basically, there are fewer risks in loaning money if the applicant is an earning individual.

  • Salaried Individual: If you are working for any government department or at any registered private company, you belong to this group. Most banks insists that the applicant should have completed at least one year in the present firm at the time of application. Pay slips, Form 16, bank statements and employer reference letter are the documents almost all lenders demand. Proofs for the same is needed for co-applicant and guarantor too (if applicable).
  • Independent Professionals: Doctors, dentists, architects, engineers, management consultants, chartered accountants, freelance workers etc. belong to this category. Bank statements and ITR papers have to be submitted.
  • Self Employed: Do you have your own company/ business? Or do you have other source of income like rented properties or hold shares? Then you belong to this category. If you have bank statements and tax-related papers to show, you can certainly apply for a home loan.

3) Rate of Interest: Home finance eligibility is always inversely proportional to the rate of interest. If the rate is more, eligibility will be less and vice-versa.

4) Loan Term: If you opt for a longer tenure, your eligibility will improve. EMIs too will lesser and manageable. But the downside to this is, you will end paying more interest.

5) Outstanding Loan(s): Indian banks and financial institutions always recommend keeping the EMI to Income Ratio between 50 or 60 percent. This is to leave window for future loans or to pay of existing loans if any. But unsettled loans could be a great damper on your eligibility.

6) CIBIL Report: Banks also scrutinize your credit repayment history from CIBIL (Credit Information Bureau India Limited), which is country's regulator and first credit information bureau. They keep detailed records of every info regarding credit history relation between you and lenders/ creditors. A negative entry can bring down your eligibility significantly.

7 Tips To Increase Your Home Loan Eligibility

Eligibility is not an easy thing to assess. The banks and lenders will be considering your present liabilities, income, assets, etc. while calculating your home loan eligibility. In case the mortgage requirement is slightly higher that the eligible loan amount, some changes in the way you present yourself can help in increasing the eligibility factor. Tips to increase your eligibility for a home loan are mentioned below:

  1. Clearing Existing Loans: Ensure that you pay diligently towards your credit card outstanding or personal loan installments. These can make the lender reject your application. The ideal thing to do is clear all dues and collect a no-due certificate before applying for a home loan. Ensure that your CIBIL report reflects these payments when you apply for home loan.

  2. Variable Pay: Ensure that you keep track of the variable pay that you get with your salary package. Calculation of eligibility towards a home loan also depends on this factor.

  3. Rental Income: If you have a house that is not being used by you, lease it out. The money that you earn as rental from this property can be used by you to show additional income source when you apply for a home loan. Your loan value can easily be enhanced by adding the rental income with our regular earnings.

  4. Increase in Tenure: The tenure of the home loan and the eligibility factor are directly proportional to each other. The eligibility increases upon increasing the tenure of the home loan. However, the maximum tenure that can be availed at present stands at 30 years.

  5. Income of the Spouse: In case your spouse has a regular source of income, then applying for a joint home loan can prove to be advantageous. The home loan eligibility goes up dramatically if you apply for a home loan with your spouse. This also suggests that both of you will have to repay the loan together.

  6. Take the Time You Need: Before making an application for a home loan, it is advisable that you take a look at your credit score. Look for errors on your report. In case, you find an error, ensure that it gets cleared by CIBIL. In order to get a loan quickly, do not apply with multiple lenders. Instead, find out the offers that you can get from different lenders. If the CIBIL score that you have is good, different lenders will be more than satisfied to offer the loan amount to you. Before you choose your lender, speak to an existing customer of that lender. Easy schedule of repayment, competent rates of interest and good services are the things to look at while choosing a lender.

  7. Step up Loans: Step up loans can be considered by you if you wish to increase your home loan eligibility factor. This is a great option for people face a lot of struggle initially, but get rewarded as they get established. Example – Chartered Accountants and Doctors. Under step up loans, lower EMIs will be offered with the loans. The installments will go up gradually in the future.

FAQs on Home Loan Eligibility:

1. What factors are considered by a lender/bank while approving a loan?

There are several factors that are considered by banks or lenders to determine if you are eligible for a loan. These factors are mentioned below:

  • Applicant’s age.
  • Applicant’s income level.
  • Qualification of the applicant.
  • Income level of spouse.
  • Resident status.
  • Existing loan status.
  • Credit score and credit history.

2. Are my children eligible to be co-applicants for my home loan?

Yes, your parents, children and spouse are considered eligible for being co-applicants for the home loan.

3. Am I eligible for tax benefits if I take a home loan?

Yes, you can avail tax benefits when you take home loan from a bank or a financial institution under Section 80C and Section 24 under the IT Act.

4. Will I be eligible for a home loan if I have a bad credit score?

In case you have a poor credit score, it will be difficult for you to get a home loan. Banks or financial institutions consider your credit report to be of great value while determining your eligibility towards a loan. If you have a good score, banks will be happy to offer you a home loan with attractive rates of interest. However, with a bad score lenders will doubt your repayment capability and might not consider you to eligible for a home loan.

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News about Home Loan Eligibility

  • Caution on Housing Loans Advised by CRISIL

    The lenders are focussing a lot on the segment that includes self-employed individuals for fuelling the housing loan growth. However, as per a CRISIL report, the businessmen have been warned about the risky segment. The segment is seen to be risky because of the immense spike in bad loans. The number of self-employed customers has gone up for the home loan finance companies to 30%. Four years ago, this stood at 20%. However, the gross non-performing assets, which were at 0.40% before, are now at 1.1%. One of the officials stated that the initiatives taken by the Government of India has caused the growth surge and the trend is expected to continue as both small and large housing finances organisations keep their focus on this particular segment.

    5 April 2018

  • SC Focus on Home Buyer Security

    The Supreme Court has been concentrating more and more on the homebuyer’s security and the completion of various housing projects on time. This has been seen as a positive development and people are gaining more trust and faith in the real estate sector on the whole. In fact, the results of this are in front of our eyes. In the recent months, there has been a sudden and increased rise in the ‘insolvency’ cases against various real estate developers and promoters who have not finished projects on time, and have ‘defaulted’ in some way or the other.

    As per a recent order issued by the apex court in India, it made it very evident that the main objective is to safeguard the interests of buyers in the country. Also, to encourage the completion of projects that have been overdue from a long period of time. Apart from this the Supreme Court is also likely to collect ‘undertakings’ from real estate developers in an effort to strictly monitor the completion of various housing projects that need to be completed. It will be quite a challenge to keep a track of all the incomplete projects since the numbers are pretty huge in the country. In this light the RERA Act has immense potential to look into the various issues related to the real estate sector in the nation in the coming years.

    21 March 2018

  • Rental Housing Market in Various Type of Cities stand at 28, 36 and 40 percent respectively

    The economic survey of 2016-17 has highlighted that migration has doubled in the period between 2011-16 as compared to the period between 2001-11. As per the survey, over 90 cities in the country had recorded annual population growth of 3 percent or more. Given the rise in migration, the urban housing shortage was estimated to be 19 million homes as of 2012. It needs to be taken in account that rental housing forms a significant component of housing in urbanising countries. As per the data available on migration-rental hypothesis, states like Gujarat, Maharashtra, Andhra Pradesh have a high percentage of rental housing. A report suggests that small, medium and large cities had 28, 36 and 40 percent of rental housing in the country. It added that in cities where large-scale construction and wards with industrial corridors are being witnessed have a higher share of rental housing. Given that, the migration figures are constantly on the rise, several changes need to be brought about to ensure that issues related to the rental housing market can be addressed.

    19 March 2018

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