How is Home Loan Eligibility is Calculated on Your Salary

A home loan eligibility calculator helps you find out the maximum loan amount you can get based on your monthly income, existing EMIs, interest rates, and tenure. It gives you a clear idea of your borrowing capacity before applying.

Key Eligibility Criteria for Home Loan

Most banks and NBFCs in India follow common eligibility parameters. However, some specific criteria may vary based on the lender.

Criteria	Requirement
Age	18 – 70 years
Minimum Income	₹25,000/month
Credit Score	750+
Employment Type	Salaried / Self-employed
Work Experience	Minimum 2 years
Loan Amount	Based on income, credit, and property
Property Type	Completed / Under Construction / Plot
LTV Ratio	Up to 90%
Residential Status	Indian Resident / NRI

Home Loan Eligibility Criteria for Top Indian Banks (2025)

Bank	Age	Loan Tenure	Loan Amount
HDFC	18 – 70 yrs	Up to 30 yrs	Up to ₹10 crore
SBI	18 – 70 yrs	Up to 30 yrs	As per profile
Axis Bank	21 – 60 yrs	Up to 30 yrs	Up to ₹3 crore
LIC HFL	21 – 60 yrs	Up to 30 yrs	From ₹1 lakh onwards
Bank of Baroda	21 – 70 yrs	Up to 30 yrs	Up to ₹10 crore
PNB	18 – 70 yrs	Up to 30 yrs	Up to 90% of property value
Canara Bank	21 – 55 yrs	Up to 30 yrs	Up to ₹10 crore
IDBI Bank	22 – 70 yrs	Up to 30 yrs	Up to ₹10 crore
Indiabulls	21 – 65 yrs	Up to 30 yrs	Up to ₹15 crore

How Is Home Loan Eligibility Calculated?

Let’s take an example:

Chandrima Bhagat earns ₹1,08,900 per month, but allowances like LTA (₹9,000) and medical (₹2,000) are not considered. So, his net income becomes ₹92,400.

Most banks allow EMI up to 50% of net income. So,

• Eligible EMI = ₹92,400 × 50% = ₹46,200

• Loan eligibility = ₹46,200 × 60 (EMI multiplier) = ₹27,72,000

Try the Home Loan Eligibility Calculator (Example)

Chandrima Bhagat earns ₹1,08,900/month. Here’s a breakdown:

Income Head	Amount (₹)	Excluded?
Basic Salary	32,000	No
HRA	900	No
Conveyance	10,000	No
LTA	9,000	Yes
Special Allowance	55,000	No
Medical Expenses	2,000	Yes

Total Income:  1,08,900

          

How to Check Home Loan Eligibility for Salaried & Self-Employed?

• Salaried: Must be employed in a private/public company with regular salary slips.

• Self-employed: Need to show IT returns, business proof, bank statements, etc.

• Income and work stability are crucial for both.

Eligibility Differences: Salaried vs. Self-Employed

Factor	Salaried	Self-Employed
Minimum Income	₹25,000/month (varies)	Depends on business profit
Work Experience	Min. 2 years	Min. 3 years in business
Documents Needed	Salary slips, Form 16	ITRs, business proof, profit & loss statements.

Factors Affecting Your Home Loan Eligibility

• Age: Younger borrowers can get longer tenures.

• Income: Higher, stable income improves eligibility.

• Credit Score: Must be above 750.

• Current Debts: Fewer EMIs = higher eligibility.

• Loan Tenure: Longer tenure = lower EMI = better eligibility.

• Interest Rate: Lower rate = higher loan approval.

• Property Value: Impacts the LTV ratio and amount sanctioned.

Tips to Boost Your Home Loan Eligibility Smart and Easy Tricks

• Improve Your Credit Score
• Timely payments, minimal credit usage, and fewer loans enhance your credit profile.

• Increase Down Payment
• Higher down payment = lower loan requirement and higher eligibility.

• Reduce Debt-to-Income Ratio
• Pay off existing debts to show lenders better repayment capacity.

• Apply with a Co-applicant
• Co-borrowers with income and good credit can increase your chances.

• Get Pre-approved
• Pre-approval gives you a realistic view of how much loan you can avail.

Who Can Be a Co-Applicant?

Your spouse, parents, or children can co-sign the loan to increase approval chances. Their income and credit history are also evaluated.

Use Case Example: Top-Up Loans

Already Have an Existing Home Loan? You Can Get a Top-up Loan if:

• You’ve made timely repayments
• The bank approves your repayment capacity

FAQs on Home Loan Eligibility

1. How much home loan can I get on ₹50,000 salary?

You may get ₹20-25 lakhs depending on EMIs and tenure.

2. Is a co-applicant mandatory?

No, but having one improves your loan eligibility.

3. Can NRIs apply for home loans?

Yes, NRIs are eligible under most lenders’ schemes.

4. What if I have a low credit score?

It reduces your chances, but you can still apply with a co-applicant or improve your score.

5. Do I get tax benefits on a home loan?

Yes, under Section 80C and Section 24 of the IT Act.

6. Who can apply for a joint home loan?

Spouse, parents, or children—if income documents are valid.

7. Can I apply for a subsidy?

Yes, under PMAY if you meet the income and housing conditions.

8. Can I get a loan for an under-construction property?

Yes, the loan is disbursed in stages based on construction progress.

9. How is eligibility based on salary calculated?

Lenders use your income, existing liabilities, and other factors to determine how much EMI you can afford.

10. Can I apply for a joint home loan?

Yes, co-applicants must be family members (spouse, parents, or children).

11. Is a co-applicant mandatory?

No, but it’s often recommended for higher eligibility and better chances of approval.

12. What’s the PMAY eligibility criteria?

Eligibility depends on annual family income:

EWS: Up to ₹3 lakh

LIG: ₹3–6 lakh

MIG I: ₹6–12 lakh

MIG II: ₹12–18 lakh

Ready to Check Your Eligibility?

With the Home Loan Eligibility Calculator at Upniva, you can determine the amount that you may borrow. It is quick, simple, and free and takes just two minutes to complete. 

Whether you are a salaried employee or business owner, Upniva helps you find your best home loan deals that apply to your individual profile-all without hassle.