How Banks Calculate Home Loan Eligibility

Banks use several factors to determine how much home loan you can get.

Key Eligibility Factors

1. Income

• Salaried: Gross monthly salary × 60 = Max EMI capacity
• Self-employed: Average of last 3 years ITR

2. Age

• Minimum: 21 years
• Maximum: 65-70 years (at loan maturity)

3. CIBIL Score

| Score | Impact | |-------|--------| | 750+ | Best rates, quick approval | | 700-749 | Good rates | | 650-699 | Higher interest | | Below 650 | Difficult approval |

4. Fixed Obligations

Banks check your existing EMIs. Total EMIs shouldn't exceed 50-60% of income.

Eligibility Formula

Max Loan = (Monthly Income × 60) × Tenure Months × (1 - Interest Factor)

Example for ₹1 lakh salary:

• Max EMI: ₹50,000-60,000
• 20-year loan @ 8.5%: ₹55-65 lakh

Calculate your EMI: EMI Calculator

Tips to Increase Eligibility

1. Add co-applicant (spouse's income adds up)
2. Clear existing loans first
3. Improve CIBIL score
4. Choose longer tenure
5. Show rental income

Related Calculators

• Home Loan Calculator
• EMI Calculator
• Stamp Duty Calculator
• Loan Payoff Calculator