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home loan eligibility calculator

Home Loan Calculator SBI

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home loan eligibility calculator

home loan eligibility calculator
home loan eligibility calculator

Introduction to Home Loan Eligibility

Buying a home is an exciting milestone in life. However, qualifying for a home loan can be a challenging process. Lenders consider various factors to determine if you are eligible for a home loan and how much you can borrow. Understanding the home loan eligibility criteria will help you evaluate your chances and prepare better.

Factors That Determine Home Loan Eligibility

Lenders mainly consider the following factors to assess your home loan eligibility:

Your Income

Your total monthly income is the most important factor. Lenders want to ensure you can repay the loan. Your income must be steady and predictable. Salaried individuals need to provide salary slips and tax returns. Self-employed borrowers require income tax returns and bank statements.

Your Credit Score

Your credit score gives lenders an idea of how well you have managed loans in the past. A higher score increases your chances of loan approval and better terms. Most lenders accept scores above 750. Check your credit report and try to improve your score before applying.

Your Total Debts

Lenders calculate your debt-to-income ratio by comparing your total monthly debt payments to your gross monthly income. A lower DTI implies you have the capacity to take on more debt. Many lenders require the DTI to be under 50%.

Size of the Down Payment

The down payment is the upfront amount you pay towards the home yourself. A higher down payment signals you are financially stable and lowers the risk for lenders. Many lenders need a minimum of 20% down payment for approval.

Your Employment History

Lenders prefer borrowers with a stable work history. Having a job for at least 2 years with the same employer often helps. Provide sufficient proof of your employment. If you change jobs frequently, explain reasons to the lender.

Your Existing Assets

Lenders will assess assets like savings accounts, investments, retirement funds to determine your financial health. The more liquid assets you have, the better your chances of getting approved and negotiating for better terms.

Your Profile and Loan Purpose

Borrowers with higher education, earning in professional fields and living in metros are viewed more favorably. Similarly, loans for primary residence purchase are preferred over investment properties or second homes.

Your Liabilities

Any existing loans you may have, like student loans, auto loans, credit cards, can impact your eligibility if the EMIs are high. Try to close or consolidate high-interest debts before applying for a home loan.

Co-applicant Income

Including a co-applicant with higher income and credit score can significantly improve your eligibility chances. The co-applicant’s income and debts are considered by lenders for approval.

Your Age

Younger borrowers are usually considered riskier by lenders. But this can be mitigated if you have a stable career, high income, substantial assets, and clean repayment history.

Home Loan Eligibility Calculator

The easiest way to find out what loan amount you can get approved for is to use a home loan eligibility calculator. Follow these steps:

  1. Visit bank websites or online financial portals
  2. Look for a home loan eligibility calculator and open it
  3. Enter details like your age, location, income, job profile
  4. Fill in current debts, credit score, co-applicant income if any
  5. Enter estimated property value and down payment amount
  6. The calculator will tell your maximum eligible loan amount
  7. Try tweaking the inputs to see changes in the loan amount
  8. Consult a bank representative for more personalized eligibility assessment

How to Improve Your Home Loan Eligibility

If the eligibility calculator shows you cannot get your desired loan amount, here are some tips to enhance your eligibility:

  • Pay off expensive debts to reduce your debt-to-income ratio
  • Build a consistent savings history to show financial discipline
  • Avoid new loan applications before applying for home loan
  • Review your credit report and try to improve your credit score
  • Include a co-applicant with better income and credit score
  • Provide concrete proof of all your income sources to lenders
  • Explain any job changes or gaps in employment
  • Build up assets like fixed deposits that can be pledged
  • Opt for a lower value property that requires a smaller loan
  • Increase your down payment amount through savings or family help

FAQs on Home Loan Eligibility

Q1. How is eligibility calculated for self-employed borrowers?

For self-employed applicants, lenders analyze last 2 years ITRs, bank statements and balance sheets to assess income stability. Your average monthly income over last 6 months is considered.

Q2. What documents are needed for home loan eligibility?

Salaried applicants need last 6 months payslips, bank statements, ITRs and employment proof. Self-employed require ITRs, bank statements, business proof, profit/loss statements.

Q3. Can I get 100% funding for a home loan?

Most lenders provide max 80-90% funding. For 100% funding you need very high income, credit score of 750+, and ready collateral to cover the gap.

Q4. How to check home loan eligibility before applying?

Use online eligibility calculators to get an estimate. Consult bank representatives to evaluate your personal eligibility without impacting your credit score.

Q5. How can I improve my chances of loan approval?

Maintain a credit score above 750, keep debts low, build consistent savings, provide genuine income proofs, and include a co-applicant if you have a low credit profile.


Determining home loan eligibility involves a balanced assessment of multiple factors. Use online calculators to get an initial estimate and then speak to lender representatives for your personal eligibility. Make efforts to improve aspects like credit score, debts, and down payment to enhance your chances of approval.

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