How to Calculate Home Loan Eligibility_Banner



Before you apply for Housing Loan, it is important you are aware of the  Home Loan eligibility criteria set by your lender. Knowing the criteria in advance and ensuring you meet the most critical ones are critical to enhancing your chances of approval.

Here, a few things are important — knowing how to check Home Loan eligibility based on whether you are salaried or self-employed, gauging your eligibility based on your credit score, and learning how to calculate Home Loan eligibility based upon your income and financial obligations.

Here is a brief explanation on how to check loan eligibility.

Bajaj Housing Finance extends Home Loans to salaried individuals who are:

  • Residing citizens of India
  • Aged between 23 and 62 years**
  • Have at least 3 years of work experience at a public/private enterprise or an MNC

Bajaj Housing Finance extends Home Loans to self-employed individuals who are:

  • Residing citizens of India
  • Aged between 25 and 70 years**
  • Have at least 5 years of business continuity in the current business


**The upper age limit is considered as the applicant’s age at the time of loan maturity.

While these are the preliminary criteria to be considered for an application, your eligibility for a Home Loan depends on your employment, financial, income, credit, and obligation profile.

Credit Score Range for Home Loan

Many lenders prefer applicants to have an ideal credit score for Home Loan, which is 750 or above. This is because your credit score is a numerical representation of your creditworthiness and a low score would thereby imply a certain amount of risk.

With a sub-optimal score, you could still get a loan from some lenders, but at the cost of less favourable borrowing terms, such as a higher interest rate or a lower sanction. Listed below are credit score ranges, and you should try to increase your score to reduce the risk and improve your eligibility as a borrower.

Credit Score Rating
750–900 Ideal
650–749 Good
300–549 Bad

It is helpful for applicants to know how to calculate loan eligibility based on income and obligations. One of the primary factors that affects your eligibility is your FOIR, i.e., Fixed Obligation to Income Ratio. This ratio represents how much of your income goes towards serving existing obligations, such as other loans, thereby indicating how much of your income is free to service your Home Loan EMIs.

Apart from this, lenders also assess eligibility based on your age and city of residence. For instance, a borrower in his early 30s stands to be offered a longer tenor or better terms, because they are likely to be in the workforce longer.

While the factors listed above provide an understanding of what affects Home Loan eligibility in general, you can also check your Home Loan eligibility with the help of our Home Loan Eligibility Calculator.

All you need to do is:

  • Select your city from the list
  • Select your date of birth from the drop-down menu
  • Fill in your monthly salary/income in the field (or use the slider)
  • Fill in your current EMIs and monthly obligations and expenses in the field (or use the slider)
  • View the Home Loan amount you are eligible for

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