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How to Calculate Home Loan Eligibility on Salary

home loan eligibility

A home loan is an effective financial choice that helps borrowers materialise their dreams of owning a home. With this credit option, borrowers can access substantial loan principal. However, to qualify for the loan amount, borrowers must cater to the predefined home loan eligibility criteria set by lenders. 

Lenders set these criteria to determine borrower’s financial status. Failing to meet eligibility norms will result in the rejection of a loan application. 

How to Calculate Eligibility for A Home Loan?

The most convenient way one can gauge out their eligibility to avail of a home loan is to use a home loan EMI calculator. Borrowers will have to provide their monthly salary, sources of additional income, loan tenor and other financial obligations in the respective field and seamlessly check their home loan eligibility. 

Here are the steps to use a home loan eligibility calculator:

  1. Visit the official website of preferred lender and then click on home loan eligibility calculator.
  2. Enter date of birth. Mention the PIN code of the city of residence.
  3. Next, mention net monthly salary, additional sources of earning, EMI pay-outs of other loan options and loan repayment tenor and click on ‘Submit’.

On providing the details, borrowers can view loan amounts they can apply for, and the home loan offers that will make their borrowing convenient.

After adhering to the eligibility criteria and submitting necessary documents, borrowers can apply for a home loan online.

Eligibility criteria for home loan for salaried applicants

Individuals wondering how to take a home loan must adhere to the following eligibility criteria first. The eligibility criteria are different for a salaried and self-employed individual and are set to ascertain the borrower’s repayment potential. 

  • Applicants must be Indian.
  • He or she must fall in the approximate age bracket of 23 to 62 years. 
  • Salaried applicants must have a minimum work experience of 3 years.

Another significant parameter that lenders consider while disbursing loan amounts is borrower’s income status. Borrowers’ net salary helps lenders to ascertain their repayment capabilities. Borrowers must note that lenders will not factor in the gratuity, ESI, PF etc. and consider only the take-home salary. 

The loan amount that salaried individuals will be eligible to borrow rests on their income stability. The higher the income status, the higher will be the loan principal borrowers will be eligible to borrow.

On the other hand, a self-employed applicant must abide by the following eligibility criteria.

  • Applicant must be from India.
  • Self-employed individuals should belong to the approximate age group of 21 to 67 years.
  • He or she must have a business continuity of at least 5 years.

Besides knowing the home loan eligibility criteria, borrowers must know the list of documents needed for a home loan. Borrowers also strive to maintain a decent CIBIL score while applying for home loan, which will help them receive competitive home loan rates. Borrowers must also be aware of the factors that affect home loan eligibility. It will help them enhance their chances of receiving a lump sum loan amount at an affordable lending rate. Besides gauging home loan eligibility, borrowers must also compute the EMI amount they have paid towards the repayment of the sanctioned loan amount.


In this regard, they can use a home loan EMI calculator. On meeting the eligibility criteria, borrowers can also reap the advantages of pre-approved offers extended by leading financial institutions. 

These offers, available on several financial products like home loans, loans against property etc., accelerate the loan application process and streamline the documentation process. Willing borrowers can check their pre-approved offers by submitting their names and contact details. 

Salaried individuals must use a home loan eligibility calculator to know the loan amount they can avail of to purchase a home based on their income status.