Personal Loan

Loan eligibility calculator for home loan and personal loan


Want to buy your dream house? Worried about the EMI? Don’t know what the EMI will be? Fret not! Check the loan eligibility calculator to know more!

Loans are the best medium to cover your financial needs at low-interest rates. The lender lends you money from a business, financial firm, or government. There are various types of loans: business loans, home loans, personal loans, etc.

You can get a home loan to buy a new home, apartment, or piece of housing land. You can also use it for the renovation, expansion, or repair of your property.

But the question is: “Is everyone who earns money eligible for taking a home loan or personal loan?” The answer is no. Use the personal and home loan prepayment calculator to check your eligibility for a loan.

What does loan eligibility mean?

You must meet the borrower criteria to apply for a home loan and get your amount disbursed. Your repayment capacity also needs to be up to the mark. You are eligible for a loan when the lender analyses you on certain grounds.

Failure to meet eligibility criteria can lower your credit scores. Along with low CIBIL scores, negative comments by lenders on the credit report can limit the chances of your loan approval.

The house loan eligibility calculator by Piramal Finance can help you figure out your eligibility for a home loan.

Factors that affect your loan eligibility

Loan eligibility can be a concern when you do not meet metrics like salary, ownership of a property, etc.

Other factors like Debt-to-income (DTI) ratio, secured-unsecured loan ratio, and improper tax paying can also lead to loan disapproval.

Here are some common factors that influence your borrower eligibility:

  • Age

When filing for a house loan, your age is the first thing that a lender considers. Young candidates receive house loans with longer terms than those approaching retirement age.

  • Credit Score

You are more likely to get the loan if your CIBIL score is higher than 750. This is why you should maintain your credit score at all times.

  • Employment type

The employment type is divided into three categories: professional, self-employed, and salaried. Salaried employees should have worked with their current company for at least one year before applying.

  • Income

The take-home pay after taxes and other deductions is your net monthly income. You should have a reliable source of income. In general, lending money is less risky if the borrower works a job.

  • Monthly obligations

Monthly obligations apply to loans that do not mortgage. You must keep a window open for future loans or, if any, to pay off current loans. Unpaid loans may, however, affect your eligibility.

Suppose your total salary is Rs 30,000, and you have two other loans that you are paying off by making loan bills of Rs 10,000 each. You will have Rs 10,000 left over for household expenses and other allowances. So, banks will not let you avail of another loan.

  • Work experience

The stats vary from bank to bank. They put conditions such as business continuation for more than 5 years or corporate experience of 2 years or more, etc.

When it comes to qualifying for a house loan, your educational and professional backgrounds also count.

How to use the loan eligibility calculator?

Banks will only lend you as much money as you can afford to pay back. They focus on your ability to make EMI payments when determining your loan eligibility.

The home loan prepayment calculator works on a formula. There is a fixed obligation to income ratio (FOIR) limit for banks. The idea is that a set proportion of your net income is never more than your fixed monthly commitments.

Fixed Obligations / Net Income = FOIR

FOIR can range from 40% to 50%.

You can change the monthly net income. Also, the EMI need, interest rate, and duration on the home loan prepayment calculator.

Improving your loan eligibility

An improvement in loan eligibility means increased chances of loan approval. There are some ways by which you can increase it. If you’re a first-time home buyer, you’ll need to do some homework to check your eligibility for a mortgage.

  • Upgrade your credit or CIBIL score.

To get a loan, you need a credit score of 750. Your credit score will rise if you are punctual with your credit card payments and instalments (EMIs). Banks may reject your loan application if your credit score is less than 750.

  • Get rid of debt obligations.

Debts make sense because they increase your ability to obtain credit. Fixed obligation factor to income ratio is what lenders consider.

  • Prefer joint housing loans.

The benefits of co-borrowing are increased home loan eligibility, shared repayment responsibility, and tax advantages.

Least requirements to get loans

The stats may vary across banks and other non-banking financial institutions. Some top banks have a lower age limit of 18–21 years. The upper age restriction is 60–70 years. Almost all banks provide maximum tenure of 30 years. The home loan prepayment calculator finds the result using the entered information.

You can speak with your lender and ask about their requirements for job experience.


Before submitting a home loan or personal loan application, you should take enough time for a thorough study. Estimate your budget. Determine your earnings and income. Check your credit report for errors, and compare your loan options. Decide between fixed and floating interest rates. Select the interest rates with minimal extra fees.

Eligibility criteria for a mortgage vary with the lender. While reviewing your home loan application, banks and lenders consider your current responsibilities. Income, assets, etc. Using a home loan prepayment calculator, you can reduce your load.

Piramal Finance can provide you with help to ease your loan approval. Read more such blogs and increase your spectrum of finance knowledge.