How The Home Loan Eligibility Calculator Works?


In order for a bank to approve a housing loan application, applicants must meet a series of eligibility requirements. If the qualifying conditions are met, the borrower will be able to repay the house loan and will not default. If an applicant fails to meet the eligibility requirements, the bank will reject their home loan application, negatively impacting the user’s credit history.

Various banks charge different interest rates on their home loans according to qualifying requirements. The bank determines the interest rate on a home loan application depending on the applicant’s eligibility. The age, income, and CIBIL score of the applicant are all factors in determining whether or not he is eligible for a home loan. Each bank has its own set of standards for qualifying. However, the general eligibility requirements are the same for all of the country’s banks. The factors that affect your qualifying for a house loan are given below.

How Home Loan Eligibility Calculator Works?

You can use the home loan eligibility calculator to check your eligibility among various banks where you can apply for a home loan. And easily compare and select the best home loan option with the help of the home loan eligibility calculator. Only need to provide basic details to access this eligibility calculator. The step by step process of how an eligibility calculator works is as follows:

  • Visit the official website of the Home Loan Eligibility calculator that you want to use.
  • Select your employment type.
  • Enter your monthly income and click on ‘Continue’.
  • Provide your PIN code.
  • Choose the purpose of your home loan.
  • Enter your mobile number.
  • Fill in your full name, date of birth, and email ID in the designated fields and click on ‘Continue’.
  • Submit the OTP sent to your mobile number.

After this, you can check and compare all the available home loan offers that you are eligible for and apply for a home loan.

What Factors Influence Home Loan Eligibility?

There are a lot of factors that can influence your home loan eligibility. Some of those factors are as follows:

Age Limit 

Home loans are generally long term loans. Therefore, the applicant’s age is the first thing that lenders check when they receive a home loan application. Young applicants that are nearly 20 years to 30 years old can avail a loan with a term of up to 25 years without any trouble. However, older applicants especially beyond the age of 40 years find it difficult to secure a home loan for a longer loan tenure. Similarly, applicants above the age of 50 years can face rejection on their home loan applications.

Employment Type

The employment types can be classified into three categories. However, irrespective of the employment type the applicant should have a stable source of income. The three employment categories are as follows:

Salaried Applicants: If the applicant is working for any government department or at any registered private company, you are likely to fall under this category. However, you should have a work experience of 1 year with 6 months being with the current employer. 

Independent Professionals: Dentists, doctors, engineers, architects, consultants, freelancers, chartered accountants, etc. belong to this category. 

Self Employed: If you have your own business or other sources of income like rented properties then you belong to this category. You can apply for a home loan by showing your bank statements and other tax related documents.

Outstanding Loans 

Banks always recommend keeping your EMI to Income Ratio between 50% to 60%. Considering this ratio and all of your existing loans, banks determine your home loan eligibility calculator for the home loan that you are applying for. 


As soon as banks receive your home loan application, banks tend to verify your CIBIL score along with your overall credit report. Any error in your credit report or an unpaid loan will have a negative impact on your home loan eligibility.

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