Home Loan Eligibility Explained: How to Check, Calculate, and Get the Best Home Loans

By Rebecca, Correspondent  |  Wednesday, 08 October 2025, 12:22:49 PM IST

Home Loan Eligibility

When considering getting financing for buying a home, understanding the home loan eligibility is your first step. This is because it will assist you in planning better, and by doing so, it can improve your chances of getting approved and help you manage your EMIs better. If you have a good plan, getting your dream home can become a reality in the near future.

Understand the Home Loan Eligibility Factors

Before submitting your application, lenders usually assess your eligibility based on some factors. Though it can vary, these generally include:

  • Age: The age of the applicant is often required to be between 21 and 70 years old at the time of the loan's maturity.
  • Income: A stable income to show your repayment capacity.
  • Employment type: Both salaried and self-employed can apply for a home loan, as long as you have a consistent source of income.
  • Credit score: A credit score of 700 or more is generally preferred for approval.

If you fulfill all the criteria of the financial institution, then you are most likely to be qualified and receive more favorable interest rates, and your home loan will be affordable. However, if you fail to meet the home loan eligibility criteria, your application will be turned down, and in the case of approval, you might receive a higher interest rate.

Step-By-Step Guide for Home Loan Application

Step 1: Check Your Eligibility

Verifying your home loan eligibility is necessary as it may prevent you from making unnecessary applications, which in turn may result in rejections, and maintain the process smooth. You can do that by checking the requirements of your preferred financial institutions and by using online eligibility calculators.

In case you do not qualify under the home loan eligibility norms, you can work on enhancing it with these suggestions:

  • Clear the small loans to minimize the debt burden.
  • Keep your credit score healthy by paying bills and EMIs on or before the due date.
  • Include a co-applicant with a stable and secure income.
  • Modify the tenure to place it in a comfortable bracket.

Step 2: Compare Your Offer

After shortlisting a few providers, it is time to verify and compare the interest rate and EMI you are going to receive. This way, you select an institution that offers you the best deal. To compare, you can use EMI calculators, which provide an estimate of the amount you will have to repay every month based on the following:

  • Loan amount
  • Tenure
  • Interest rate

As these are free, you may experiment with as many combinations as possible to discover the best one. But don't forget that these are approximations, and your actual repayment (total and monthly) may differ.

Step 3: Apply with a Recognised Financial Institution

When you're ready, it's important to choose a company that has easy-to-meet eligibility and is transparent regarding the charges, like PNB Housing Finance. A simple, fast, and effective online application will make your home loan process easy and seamless.

EMI Tips

Once your home loan is approved, the next important thing is to handle the repayment so that you don't miss one and worry about it. Here are some helpful tips: 

  • Control Debt-To-Income Ratio: You might overburden your wallet with too many EMIs and affect your repayment capacity.
  • Enable Auto-Debit: If you have auto-debit enabled on your loans, you will never have to worry about missing a due date again.
  • Select Tenure Wisely: The longer the tenure, the lower the EMIs, but you will pay more in total interest. Meanwhile, the shorter the tenure, the higher the EMIs, but your total interest will be less.
  • Make Prepayments: Smaller prepayments help lower your overall outstanding principal and total interest burden.

Use the above tips for home loan eligibility and EMIs to improve your application and make repayment manageable. Also, have the documents required in advance before applying for a hassle-free, fast, and easy process. You can also opt for balance transfer in the future for improved loan conditions, but that too has its terms and conditions.

ON THE DECK

Top Banner