When you don’t meet the lender’s eligibility requirements for a home loan and  still apply for it, your loan application is likely to get rejected. So, before you apply for a home loan, check your eligibility criteria thoroughly and then apply for it. A home loan eligibility calculator can help you determine your borrowing potential. Let us now see in detail about the various factors that affect your home loan eligibility and the home loan eligibility calculator

Factors That Affect Your Home Loan Eligibility

The various factors that affect your home loan eligibility are:

  • Age - The age is one of the factors that affect home loan eligibility. Applicants who are in their early 20s or 30s have a better chance of qualifying for a home loan. This is because they have many working years ahead and are likely to get more pay hikes and promotions. Thus, lenders are confident about their loan repaying capacity. On the other hand, borrowers in their late 40s or 50s may not be able to get a home loan easily as they have less number of working years. Thus, lenders are not so confident about their repaying capacity. Thus age is an important factor that determines your home loan eligibility. 

  • Income - Income is an important factor that plays a role in determining home loan eligibility. Those borrowers who have a stable source of income or a stable job are likely to get a home loan easily. Whereas, borrowers who do their own business and don’t have regular sources of income are not eligible for a home loan. Thus income is an important eligibility criteria. 

  • Credit Score - The credit score is an important measure to determine the home loan eligibility. It is a 3 digit number assigned to individuals by credit rating agencies based on factors such as credit score, repayment history, credit utilization ratio, etc. The higher the credit score, the higher the chances of getting approved for a home loan. Generally, a credit score of 750 and above is considered excellent, and a loan approval can be obtained easily for the same. The table below gives an interpretation for various credit score ranges.

Credit Score and Its Interpretation


Credit rating





Have to work on improving the credit score, higher interest rates, low creditworthiness, no lenders



Should work on improving the score, few lenders, still low creditworthiness, higher interest rates



Better interest rates, most lenders are willing to lend, fair creditworthiness, can still aim towards improving



highly creditworthy, low-interest rates, all lenders available, faster loan approval

  • Debt to income ratio - This ratio tells lenders what percentage of a person’s income is used for paying debts. If a significant portion of your income is already going towards paying your debt, lenders are unlikely to approve your loan. Your debt to income ratio should be within 40% to get easy home loan approval. 

What Is A Home Loan Eligibility Calculator?

The home loan eligibility calculator is an online tool that home loan borrowers can use to compute the home loan amount they can apply for and are eligible to borrow. 

How Does The Home Loan Eligibility Calculator Work?

The calculator asks for the following information:

  • Net monthly salary drawn by the applicant 
  • Additional sources of income if any 
  • The repayment tenure over which they plan to repay their loan 
  • EMI obligations at present 

Once a user enters these values, the home loan eligibility calculator displays the home loan amount that he/she is eligible to borrow. 

Why is it Essential To Use The Home Loan Eligibility Calculator?

Applying for a loan amount that a person is eligible to borrow leads to easy and hassle free loan approval. Also, it gives borrowers a high negotiating power. On the other hand, applying for a loan amount higher than what an individual is eligible for may lead to rejection of the home loan application. So, you should use the home loan eligibility calculator and find out exactly what loan amount you are eligible for. 

Steps To Use A Home Loan Eligibility Calculator?

Here is a step-by-step guide on how to use the home loan eligibility calculator

Step 1: Go to your lender’s website and search for the home loan eligibility calculator

Step 2: Open the calculator and enter the details such as your name, address, city of residence, etc. 

Step 3: Input your net monthly income, the loan repayment tenure that is most suitable for you, additional sources of income, and other current EMI obligations.

Step 4: Once you have entered these parameters, your home loan eligibility calculator will display the loan amount that you are eligible for. Apply for this amount or lower than this to improve the probability of loan approval. 


The home loan eligibility calculator is a very easy to use tool, and it will display your home loan eligibility instantaneously. Use it to become aware of your home loan eligibility and avoid loan application rejection. 


1. How to enhance home loan eligibility?

Home loan eligibility can be improved by adding an earning family member as a co-applicant, providing details of your regular additional sources of income, ensuring a stable flow of income, investments, and regular savings, coming up with a structured repayment plan, keeping track of your variable salary components, taking actions to correct discrepancies (If any) in your credit score, and repaying ongoing loans and short terms debts. 

2. How is the home loan eligibility calculated?

 The various factors that determine an individual’s eligibility for a home loan are credit score, income, age, work experience, debt, current obligation, etc. Use a home loan eligibility calculator to determine the amount of loan you can get.