Are you tired of paying rent and listening to the demands of a stubborn landlord? How about buying your own house?

Living in their own house is what most people look forward to from an early age. However, buying a place with only your savings may not be the safest bet. You could end up with too little money to finance your other requirements.

That’s where home loans can rescue you. You can borrow the required amount from a financial institution and pay it off in EMIs over a fixed tenure.

Before applying for a home loan it is important to look at the eligibility criteria in order to know if you qualify for a loan. Here is a list of the most significant factors that banks take into consideration when giving out home loans.


The first and foremost criterion is your income. You will be eligible for a home loan only if you earn an amount that’s above the minimum income limit.

Also, your income is calculated as your total salary minus things like medical allowance, travel allowance, and food coupons. The amount loaned will be approximately 40% to 50% of this final figure.

Credit History

Banks inspect your credit history to certify whether you have any existing liabilities, like another loan. They also look at your CIBIL score to check whether you have defaulted on any payments in the past.

This gives them a picture of your capacity and intention of repaying the new loan. So before applying, make sure that you check your credit history and try to clear existing liabilities.


Though it may come as a surprise, your profession plays an important role in your loan approval. For example, if you’re a doctor, an engineer, or an architect, you most likely have a stable source of income

On the other hand, a self-employed individual may have a fluctuating revenue. So the chances of them getting a loan is a lot lower than someone with a stable profession.


The minimum age for availing a loan is generally 24 years, and the maximum age for loan maturity is 60 years for salaried professionals and 65 years for self-employed individuals.

As the years go by, banks begin to lend lower amounts as they’re under the assumption that your repayment capacity will recede with age. So the sooner you apply, the better.


The city you live in plays a role in the eligibility criteria of your home loan. Loan seekers living in Tier 1 cities like Mumbai or Delhi are usually eligible for larger loans than those in smaller places like Jaipur or Mangalore.

Now that you understand the different eligibility criteria, use an online eligibility calculator for home loan to get an idea of the loan amount you’re eligible for, the rate of interest, and the EMIs you’ll have to pay. This calculator is mostly use in india for calculating EMI for home loan.

This will ensure that you’re well informed about the process when a bank discusses your loan application with you. Just a little bit of research, and you can find the right loan to help you move into your dream home.

If you live in US and want to calculate home loan eligibility then you can use this online calculator for EMI calculation. This calculator help you to analyse your eligibility according to the US country.

About the Author:
Arwind Sharma is a financial advisor with an experience of more than 7 years. He has worked for topmost financial firms in India and has been a visiting faculty at many reputed institutes in India. Currently based in Pune, Arwind Sharma is a name to reckon with when it comes to financial management for big brands. A post-graduate in business economics, he is an alumni of Princeton University, USA. During his free time, Arwind teaches children from marginalised sections of society and also work on his blog on photography.