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Home Loan Starting 6.65%*


How to Calculate Home Loan Eligibility?

What is Home Loan Eligibility?

Before you apply for a home loan, a good question to ask yourself is, what is my home loan eligibility? Failure to meet all the home loan eligibility criteria set by your lender could result in your application being rejected, and leads to a waste of time, money, and efforts. 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.

Home Loan Eligibility for Salaried Employees

Bajaj Housing Finance Limited requires salaried individuals to:

  • Be residing citizens of India
  • Be aged between 23 and 62 years
  • Possess work experience of at least 3 years

Read on to know what is the eligibility for home loan for self-employed individuals.

Home Loan Eligibility for Self-Employed Individuals

Bajaj Housing Finance Limited requires salaried individuals to:

  • Be residing citizens of India
  • Be aged between 25 and 70 years
  • Possess at least 5 years of business continuity in the current business

How to Know Home Loan Eligibility Based on Credit Score

Many lenders require you to have an ideal credit score for home loan, that is 750 or above, to get a home loan. 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. Nevertheless, with a sub-optimal score, you could still get a loan but at the cost of a higher interest rate, a lower principal, or some other not-so-favourable terms. Below are credit score ranges, and you should try to climb higher to reduce the risk and improve your eligibility.

Credit Score Range for Home Loan

750-900 Ideal
650-749 Good
550-649 Average
300-549 Bad


How to Calculate Home Loan Eligibility?

You must also know how to calculate loan eligibility based on your income and obligations. Most lenders assume that you would use 40-50% of your income for household expenses and so, you would have only 50-60% left as surplus. This amount forms the upper limit for your EMI and your EMI impacts your principal directly.

Alongside income and obligations are age and location, as lenders offer loans differently based on the number of income-earning years left and the city-specific conditions.

So, how to find home loan eligibility that applies specifically to you? With Bajaj Housing Finance Limited, you need not spend time trying to figure out how to calculate housing loan eligibility based on all these factors. Simply use the home loan eligibility calculator !

All you need to do is:

  • Enter your date of birth by using the drop-down menus
  • Select your city from the list
  • 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 how much home loan you are eligible for

Now that you know how to know loan eligibility, proceed to make a successful application and become a homeowner in no time!