Loan Eligibility Calculator 2026 - Check Home Loan Eligibility

Calculate your home loan eligibility instantly with our free loan eligibility calculator. Find out the maximum loan amount you can get based on your monthly income, existing EMIs, and preferred loan tenure. This calculator uses standard banking formulas where lenders typically allow EMI up to 50% of your monthly income. Perfect for home loan planning, understanding your borrowing capacity, and making informed property purchase decisions. Helps you evaluate different scenarios by adjusting interest rates and tenure. Essential tool before applying for home loans, as it gives you realistic expectations and helps avoid loan rejections. Works for salaried individuals, self-employed professionals, and business owners planning to buy residential or commercial property.

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Calculate Your Loan Eligibility

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Current home loan rates: 8.5% - 9.5% for salaried, 9% - 10% for self-employed

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Loan Eligibility Formula and Calculation

How Banks Calculate Loan Eligibility

Max EMI = (Monthly Income × 50%) - Existing EMI

Loan Amount = Max EMI × [(1 + r)^n - 1] / [r × (1 + r)^n]

Where: r = monthly interest rate, n = tenure in months

Step-by-Step Eligibility Calculation Example

Let's calculate loan eligibility for a salaried individual:

  • • Monthly Income: ₹80,000.00
  • • Existing EMI: ₹10,000.00
  • • Interest Rate: 8.5% per annum
  • • Loan Tenure: 20 years (240 months)
  • • Monthly Interest Rate (R): 8.5 / 12 / 100 = 0.00708
  • • Calculation:
  • Max EMI = (80,000 × 50%) - 10,000 = ₹30,000.00
  • Loan Amount = 30,000 × [(1.00708)^240 - 1] / [0.00708 × (1.00708)^240]
  • Loan Amount = 30,000 × [4.537 - 1] / [0.00708 × 4.537]
  • Loan Amount = 30,000 × 3.537 / 0.0321
  • • Eligible Loan Amount: ₹35,00,265.42
  • • Maximum EMI: ₹30,000.00
  • • Available EMI (after existing): ₹30,000.00

Loan Eligibility Based on Monthly Income

Monthly IncomeMax EMI (50%)Loan @ 8.5% - 20yrLoan @ 9% - 20yr
₹30,000.00₹15,000.00₹17,50,132.71₹16,80,425.33
₹50,000.00₹25,000.00₹29,16,887.85₹28,00,708.88
₹75,000.00₹37,500.00₹43,75,331.78₹42,01,063.32
₹1,00,000.00₹50,000.00₹58,33,775.70₹56,01,417.76
₹1,50,000.00₹75,000.00₹87,50,663.55₹84,02,126.64
₹2,00,000.00₹1,00,000.00₹1,16,67,551.40₹1,12,02,835.52

*Assumes no existing EMI. Actual eligibility varies by bank and credit profile.

Tips to Improve Loan Eligibility

Before Applying

  • • Close existing personal loans and credit card dues
  • • Improve credit score to 750+ by timely payments
  • • Add co-applicant (spouse/parents) for combined income
  • • Save larger down payment (20-30% of property value)
  • • Avoid changing jobs 6 months before application
  • • Get pre-approved to know exact eligibility

During Application

  • • Declare all income sources (rent, investments)
  • • Show stable income for last 2-3 years
  • • Opt for longer tenure to reduce EMI burden
  • • Consider step-up EMI if expecting salary growth
  • • Check multiple lenders for best rates
  • • Negotiate for lower processing fees

Age and Loan Tenure Guidelines

Current AgeMax TenureLoan Maturity AgeRemarks
25-30 years30 yearsUp to 60Best eligibility, lowest EMI
31-40 years20-25 yearsUp to 65Good eligibility
41-50 years10-15 yearsUp to 65Reduced eligibility
50+ years5-10 yearsUp to 70*Limited eligibility

*Some banks offer loans up to age 70-75 for salaried and 65 for self-employed

Frequently Asked Questions

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