Ever since home loans arrived in the scene, they have made the home buying process much simpler. Earlier, a borrower was required to visit the branch of the lender, sit for hours to get a quote, fill up the application form, submit the documents needed, and wait for weeks to get the loan sanctioned.

With online home loan eligibility calculators, all that has become a thing of the past. You can now find everything you want to discover about a housing or home loan, at your fingertips.

Just like its documentation, application process, and the interest rate calculation, housing loan eligibility criteria is simple and straightforward. You may open a home loan eligibility calculator and enter details such as your gross monthly income, loan term, rate of interest, and other existing EMI amount to get a quote.

For example, if your monthly income is INR 20,000, and you wish to avail a loan at 7.5% interest and a loan term of 20 years, you can get a loan of INR 1,236,624, and your EMI will be INR 10,000. By changing the parameters, you can easily experiment with the EMI and select an amount that suits your needs and fits your pocket.

The Eligibility Criteria of Housing Loans

The loan amount and interest rate of a housing loan depend on the eligibility criteria.

Here are the four primary requirements you need to fulfil to avail a housing loan.

  • You must be a resident of India.
  • Your age should be above 21, on the loan application, and 70, on loan maturity.
  • You must be a salaried or self-employed professional or non-professional.
  • Your income should be stable and beyond the lender’s threshold level.

What Other Factors Determine the Eligibility Criteria?

  • Credit Score

Your credit score plays a prominent role in determining your eligibility for a housing loan. Generally, when you use a home loan eligibility calculator, it asks you to enter the rate of interest. However, the rate of interest depends on your credit score. While reputed lenders like PNB Housing offer housing loan interest rates from 7.50% onwards, the best rates are usually reserved for borrowers with a credit score of 750 and more. Hence, if your credit score is below 750, you may have to shell out a little extra every month.

  • Disposable Income

Your disposable income is the amount you can spend after taking care of all your fixed expenses. Although lenders like PNB Housing approve a loan amount of up to 50% of your disposable income, it is advisable that you keep the housing loan EMI amount at less than 40% of your disposable income. Lenders usually evaluate your spending habits and financial status before determining the interest rates. Hence, if you want to get the lowest housing loan interest rates, it is better if you put yourself forward as a person who has enough surplus cash to take care of the loan EMIs.

  • Income Stability

The third factor that plays a prominent role in housing loan approval is the income stability of the borrower. If you have a job that is as stable as a rock, the chances are high that the lender will approve the loan. As a rule, you should have a minimum work experience of one year or a stable business of at least two years. Hence, to get the best housing loan interest rates and seamless loan approval, it is better to apply when your income is stable.


A home loan eligibility calculator is an excellent starting point to a housing loan. Take out the time to go through the terms before submitting your documents, though.

By Peter