How to Calculate Your Home Loan Eligibility | Kotak Mahindra Bank - Home Loan Stories
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When you apply for a home loan, the lender needs to closely scrutinise your details to determine your eligibility. If you fulfil the home loan eligibility criteria set by the lender, they could approve your home loan application and might negotiate on housing loan interest rates too. Therefore, it is beneficial to know whether you are eligible even before applying.


What Are the Eligibility Criteria of a Home Loan?

To be eligible for a home loan, you must

  • Be an Indian resident
  • Have a credit score of 700 and above


for Individuals

  • Age -

If you are salaried, your age should be between 18 and 60 years

If you are self-employed, your age should be between 18 and 65 years


  • Income -

Your gross total income should be a minimum of Rs. 20,000 per month if living in metro cities like Delhi, Mumbai, Bangalore, Pune and Chennai. If you are living in any other city, your minimum income should be Rs. 15,000 per month


  • Qualification-

You should be a graduate if you are employed with a partnership company or a private limited company. If employed with a public limited company or a public sector company, there is no minimum qualification criteria


for Partnership Firm/limited Liability Partnership /Indian Company/hindu Undivided Family (Huf)


  • The organisation/family should be in existence for at least three years
  • Karta of HUF should be an applicant/co-applicant
  • HUF should have IT returns for three years
  • Gross/Net income should be a minimum of Rs. 2,40,000 p.a. if located in cities like Delhi, Mumbai, Bangalore, Pune and Chennai. For other cities, it should be a minimum of Rs. 1,80,000 p.a.


How to Calculate Your Eligibility?


Check Your Age

As per the above-mentioned age limit, you must be in the age bracket set by the lender.


Calculate Your Total Income

Your net monthly income must be above the minimum limit. Apart from your monthly salary or profits, you can also add income earned from other sources like interest from investments or freelancing income. You must also check your expenses as your fixed obligations should not be above 50% of the total income to be eligible.


Your Employment History


Lenders consider your employment details and job profile closely as these reflect your income regularity. To be eligible, you must have a stable job profile and a regular flow of income. Also, your organisation must not be blacklisted by the lender.


Home Loan Eligibility Calculator

You can calculate your home loan eligibility through an eligibility calculator. It is available online and can be used for free. To use the calculator, you would need to enter your loan amount, fixed and additional monthly income, current EMIs, other monthly expenses and loan tenure. The calculator would display the amount of loan you are eligible for.


Reviewing these factors can help determine your eligibility and help you avail a home loan with ease. You can also enhance your eligibility by having a co-applicant for the home loan. Once you are certain of your eligibility, you can apply for a home loan from Kotak Mahindra Bank

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.