How to Check Home Loan Eligibility in India?
Before applying for a home loan, every bank or NBFC checks whether you are eligible to repay the loan. This is called home loan eligibility.
If you know the eligibility rules, you can prepare better and increase your chances of getting your loan approved. Let’s understand this step by step.
✅ 1. Key Factors that Affect Home Loan Eligibility
📌 a. Income
- Higher monthly income = higher loan amount.
- Usually, banks allow EMI up to 40–50% of your monthly income.
📌 b. Age
- Younger applicants (25–35 years) get longer tenure (20–30 years).
- Older applicants (50+) may get a shorter tenure.
📌 c. Employment Type
- Salaried professionals = stable income, higher eligibility.
- Self-employed/business owners = loan based on profit, income tax returns.
📌 d. Credit Score (CIBIL)
- Score 750+ = better chances of approval.
- Low score may lead to rejection or higher interest rates.
📌 e. Existing Liabilities
- If you already have personal loans or credit card EMIs, eligibility decreases.
✅ 2. How to Check Your Eligibility?
You can check home loan eligibility in two ways:
🔹 Method 1: Bank’s Eligibility Calculator
- Almost all banks have online calculators.
- Enter income, age, loan amount, tenure → get instant eligibility.
🔹 Method 2: Manual Calculation
👉 Formula:
Eligible EMI = 50% of monthly income – existing EMIs
Loan Amount = Eligible EMI × Loan Tenure × Interest Factor
Example:
- Monthly Income = ₹50,000
- Existing EMI = ₹5,000
- Eligible EMI = ₹20,000 (approx.)
- Loan Amount = Around ₹20–25 lakh
✅ 3. Tips to Improve Your Home Loan Eligibility
✔ Maintain a CIBIL score of 750+
✔ Pay off existing loans before applying
✔ Add a co-applicant (spouse/parent)
✔ Choose a longer tenure for smaller EMIs
✔ Show stable income proof (salary slips/ITR)
📊 Sample Eligibility Table
| Monthly Income | Max Loan Amount (Approx.) |
|---|---|
| ₹25,000 | ₹10–12 lakh |
| ₹50,000 | ₹20–25 lakh |
| ₹75,000 | ₹35–40 lakh |
| ₹1,00,000 | ₹50–55 lakh |
🚀 Why Check Eligibility with Mortbuzz?
At Mortbuzz.in, we make it easy:
- Free eligibility check in minutes
- Compare multiple banks instantly
- Expert guidance to improve eligibility
- Exclusive cashback offers on processing fees
Conclusion
Home loan eligibility depends on income, credit score, age, and existing debts. By preparing in advance, you can increase your chances of approval.
💡 Want to check your eligibility now? Visit Mortbuzz.in and get expert help today!