Know How Home Loan Eligibility is Calculated on Your Salary

Here’s How you can Check Your Home Loan Eligibility Against Your Salary

A home loan is the best way to get the house of your dreams without worrying about building a corpus fund for years. Anyone who wants to buy a home and has a stable source of income can apply for a home loan.  It is best if you want to check your loan eligibility, use Online home loan eligibility calculator, this is the best tool for you. You can easily check your loan eligibility with the calculator.

Once you apply, a lender will determine your eligibility based on several factors. These include your proof of income, the property’s value against your ability to repay the loan, etc. When you understand the eligibility criteria used by lenders makes the process of getting a house loan easier for you.

What Factors Affect Loan Eligibility?


The first thing lender will look at when checking your eligibility is your age. The minimum age to apply for a loan is 21 years, and the maximum is 70 at loan maturity. It is the primary factor any lender/ financier considers when one applies for a housing loan. The younger you are, the better your chances of getting a loan for a longer duration (20-30 years).


Your salary is a crucial aspect of your loan eligibility. Lenders need to know you have enough income to pay loan processing charges, home loan down payment, and other associated costs. Not to mention, your salary determines your ability to repay the home loan.

Interest Rate

If your interest rate is higher, it can reduce your eligibility. The interest rate is determined based on your income, age, and loan amount.
Loan Tenure

The longer the tenure, the lesser your EMIs. Also, loans for a longer tenure have higher chances of being eligible.

Existing Loan

Your existing loans will also be considered when applying for a home loan. Lenders will evaluate your salary against your current loan to understand your loan repayment ability. However, if you have a previous loan that you paid in full and on time, it improves your eligibility.


CIBIL (Credit Information Bureau India Limited) can generate your credit report on request, which helps lenders understand your credit score and payment habits. A negative entry, like defaulted payment or lower credit score, will decrease your eligibility for a housing loan.

Home Loan Eligibility Against Salary

If you are a salaried professional, your salary is the primary consideration for your loan application. Most lenders require a minimum monthly income of Rs. 20,000 to avail of a housing loan.

You also need to set aside a home loan down payment when considering a home loan. You are eligible for a home loan up to 60 times your monthly salary. So, if your net salary is Rs. 50,000, you can get a loan of approximately Rs 30 lakhs.

For example, if you want a loan of 30 lakhs, your ideal tenure based on salary will be 20 years with a 7% interest rate. You can combine the house ownership with another earning family member to get a higher amount.

Online home loan eligibility calculators are a convenient tool that helps with such calculations.

The following salary components determine your home loan eligibility:

  • Basic salary
  • Medical allowance
  • Leave travel allowance (LTA)
  • House rent allowance
  • Vehicle allowance

How to Improve Home Loan Eligibility?

Even if you think your past loans or payment history can work against you, you have some options to improve your eligibility for getting a housing loan:

Improve CIBIL score: A CIBIL report contains all your credit history. Credit history of 750 or above is generally considered favorable.

Clear current loan: Clear outstanding loans before getting a house loan so lenders don’t think you have too many loans that can impact your repayment ability.

Get a joint loan: A joint loan means including another earning member of your family in the homeownership. This increases your loan amount and works in favor of your loan eligibility.


You can use a home loan eligibility calculator to understand your loan eligibility based on your salary. It is easy to use and accessible to anyone, so make sure to make use of it. The calculator is also a good way to determine how much EMI you will pay towards your home loan.
A housing loan is a long-term commitment. Check multiple lender policies and interest rates to make an informed decision about your home loan.