Home Loan Eligibility Calculator Dec, 2018

Want to calculate Home Loan Eligibility ? Use this tool - enter your salary, other EMIs you pay & find the amount of Home Loan you can get
Net Income in Rs./pm you get
Tenure of Loan (In Years)
Interest Rate
Other EMI you pay

You Can Get a Home Loan Of at an EMI of


What is a Home Loan

Everybody knows that a Home Loan refers to the money you borrow from the Bank (or any other Financial Institution) to purchase a home for yourself.

Now will the Bank just give you the money for purchasing the house. They would first assess you thoroughly and based on certain criteria only they would lend you the money as home loan.

So you have some spare funds available every month? Find out how much Home Loan Amount you can get out of monthly spare funds

Banks typically look towards following 2 things before they offer a home loan:
1. Eligibility of the Property you are purchasing
2. Eligibility of the Person taking the loan
Having calculated both, they offer the LEAST of the two. Yes, least of the two.
We will not concern ourselves with the Eligibility of the property as of now but we would focus on Eligibility of the person. The individual/person taking the loan could be salaried person or self-employed person. The Banks assess them differently.

SALARIED person:

Eligibility calculation with home loan affordability calculator for salaried person is very simple. The Banks see the salary you are getting every month. They have a thumb rule that the person can afford to pay about 50% of his salary as EMIs. So if you are earning Rs.60000 per month, the Banks believe you can afford to pay around Rs.30000 as EMIs every month. This could be plus or minus 5%. This figure in our example so arrived is checked against any EMIs you are paying. If you are, the EMIs are deducted from this figure of Rs.30000 so arrived. Say you are paying a Personal Loan EMI of Rs.10000 per month, your eligibility would be calculated on your capacity to pay Rs.20000 as EMIs. This roughly works out to Rs.22 lacs of loan for 20 years. In case you wish to get higher loan amount, you would have to get a co-borrower whose income can be added to your income.

Self Employed Person:

Eligibility calculation for a self-employed person starts from Net profit his firm is making. To that gets added depreciation, salaries paid to director/partner, income showed in ITR (if separate from business) of individual (income apart from salary drawn). This is divided by 12. Most Banks will consider 80-100% of this amount as the amount of EMI which can be paid. Any existing EMIs being paid monthly are deducted. A reverse calculation is worked out – remember as a thumb rule we can multiply it with 105 also to get loan amount we are eligible for, for a loan of 20 years. In case you wish to get higher loan amount, you would have to get a co-borrower whose income can be added to your income.

Apart from this, Banks also check out your total work (business) experience, experience with current employer (business), your stability at a residence & certain other subjective factors to take a call on your eligibility.

You can use this calculator to find out car loan eligibility for yourself. Then you can choose from the best offers available from the site & go for the lowest interest best car finance for your next car purchase.

The need for this Home Loan Eligibility Calculator

Financial Calculations are not so easy to understand. Even though the EMI Calculator is the most basic one, still it is a struggle sometimes to understand the same. We thought why not make a calculator that helps you easily to determine what you have to pay as home loan EMI every month for a particular loan amount for a particular tenure of home loan as housing loan interest rate. That’s it. The rest is done by the calculator.

How to use this calculator

Just going through the formalities, I will now tell you how to use this auto loan eligibility calculator.

NET INCOME IN RS. PER MONTH YOU GET: Enter your salary in Rs. Per month that you get. Please enter the Net Salary you receive every month.

TENURE OF LOAN IN YEARS: Here you select the tenure of the loan you feel is comfortable for you – 3 years or5 years. We have put the default value at 5 years which is what mostly the vehicle owners go for whenever they are taking a car loan.

INETREST RATE: Enter here the current offer in the market for the best interest rate. You can check offers on our site to enter the new interest rate. Default value we have put here is 10% which we believe is much closer to the prevailing interest rates in the market.

OTHER EMI YOU PAY: You have to enter here what all other EMIs you are paying in total for the other loans you are running.

What you get as an answer is the amount of Car Loan you are eligible for getting from the Banks. This is just a good approximation. The final thing depends on the Banks that are approached. If you would look around slightly on this page, you can find offers on Car Loans. Choose from one of them, get door-step service & save money. Then go on a long drive for a holiday and make your family happy.

Home Loan explained in detail

This is going to get technical. Don’t tell me I didn’t warn you! However, there are a few things that you need to know.

Selection of the Bank for Home Loan

Home Loan looks like a very simple product. Nothing much to choose from within the various Banks. Right? Wrong. The choice of Banks goes beyond just the interest rates. One must see the turnaround time & customer service levels. Many times, Banks do not pass on the benefit of lowering of interest rates to the existing customer. RBI keeps on trying very hard that they do so but they some-how or the other find out the loopholes not to do so. I won’t name such Banks but you can find about them with some research.

Compare offers and choose the one that’s to your liking – See expert offers from BankerBhai on loans. Compare various offers available to you in terms of housing loan interest rates, processing fees, other details like foreclosure etc.

Prepayment & Foreclosure charges

Better check before-hand than be sorry.

While home loans are sanctioned for a tenure of upto 30 years, rarely do people actually run the loan for that long. Each one of us wants to pay off the loan at the earliest and own our home fully. It is observed that the average period people take to pay off their home mortgage fully is around 8 years. This happens because most people make partial or even full prepayment of the loan when they have surplus money.

It is important to select a bank that allows you to prepay your loan without any charges or hassles. As per RBI circulars, banks are not allowed to charge prepayment penalty or charges on floating rate home loans. However, banks may charge penalty on prepayment of fixed rate loans. Charges may vary from 1 % to upto 3% of the loan amount. So, check this aspect carefully before selecting a bank and home loan. Another option is a smart loan or an interest saver loan. Do you normally keep a significant bank balance or do you run high bank balance at times? You may like to consider Home Credit or Home Saver or Maxgain options which allow you to deposit your surplus savings in a bank account and pay interest on home loan only on the net difference between the two. So, for the period that your surplus cash stays in the bank, you pay less interest on your home loan.

Tax Benefit of Home Loan

Section 24 – Tax Deduction with respect to HOME LOAN INTEREST

Deduction up to Rs.2 lacs can be claimed by house owners on their home loan interest if the house property is self-occupied (self or family). The same applies when the house is vacant. On rented out properties, the entire interest on the home loan is allowed as a deduction.

The deduction on interest however is restricted to Rs. 30,000 if any of the conditions given below for the Rs.2 lac rebate is not met.

  • The home loan must be for purchase and construction of a new property.
  • The loan must be taken on or after 1 April, 1999.
  • The purchase or construction must be completed within 3 years from the end of the financial year in which the loan was taken.

Please note that deduction on home loan interest cannot be claimed when the house is under construction. The interest paid during the time of loan taken till the time construction is completed, can be claimed as deduction in 5 equal instalments starting from the year the construction was completed.

Section 80 C – Tax Deduction with respect to PRINCIPAL PAYMENT

Principal repayment on Home Loan can be claimed up to Rs.1.50 lacs. This however falls under the overall ceiling of deductions available under Section 80C. Registration & stamp duty charges can also be claimed under Section 80C.

Section 80EE – Tax Deduction with respect to FIRST TIME HOME OWNERS

This recently added provision to the Income Tax Act, provides first-time homeowners tax benefit of up to Rs.1,00,000.

To claim this deduction:

  • One must be a first-time home owner
  • Home loan should not exceed Rs. 25 lacs
  • Property value must not exceed Rs. 40 lacs
  • Loan should have been sanctioned between April1, 2013 to March 31, 2014
  • No other house should be owned by the taxpayer on the date the loan is sanctioned

How to claim tax deductions on home loans?

  • The amount of deduction you can claim depends on the ownership share you have on the property.
  • The home loan must also be in your name. A co-borrower can claim these deductions too.
  • The home loan deduction can only be claimed from the financial year in which the construction is completed.


Fixed rate loans are not in vogue now but in case you really need to fix your monthly outflow you may like to go for them. However they come with a higher rate of interest than floating rate loans and more often than not carry a pre-payment penalty charge.

Another point to note with fixed rate loans is whether they are really fixed? Most banks offer fixed rate for the initial period and convert this into floating rate thereafter. Fixed rate period may vary from 1 year to 10 years though the total loan tenure may be upto as high as 20-30 years. Always check what will be the applicable rate after the fixed rate period ends. Many customers have often complained that they see a sharp increase in interest rate when the loan converts from fixed rate to floating rate.

A Floating rate loan is benchmarked to the overall market rates with some margin over & above that market rate. This is different bank to bank. The margin is different bank to bank. And many banks somehow find a way out to do a bit of tinkering with this margin to benefit tthemselves.

Document List

Documents required for Home Loan


Self Employed Professional

Self Employed Non Professional

Application form












Identity Proof




Address Proof




Age Proof




Bank Statements




Signature Verification




Income Proof




Latest Salary Slip / Form 16




Income Tax returns of 2 previous financial years along with complete financial/audit report.




Income Tax Returns of 2 previous financial years.




Other Documentation




Business Stability proof / Ownership proof




Employment Stability Proof




Partnership deed and Letter signed by all partners authorising one partner




Companies and Societies: Resolution by Board of Directors (or such managing body) and Memorandum and Articles of Association





The data generated herein is completely and solely based on the information/details provided by you in response to the questions specified by the site BankerBhai.com. Such information and the resultant data is provided only for user's convenience and information purposes. BankerBhai.com does not guarantee accuracy, completeness or correct sequence of any the details provided therein and therefore no reliance should be placed by the user for any purpose whatsoever on the information contained / data generated herein or on its completeness / accuracy. The use of any information set out is entirely at the User's own risk. User should exercise due care and caution (including if necessary, obtaining of advise of tax/ legal/ accounting/ financial/ other professionals) prior to taking of any decision, acting or omitting to act, on the basis of the information contained / data generated herein. The information contained / data generated herein may be subject to change, updation, revision, verification and amendment without notice and such information/data generated may change materially.

Trending Knowledge-Base

View All