Use an Eligibility Calculator to Avoid Housing Loan Rejection

Housing Loan Rejection

Access to housing loans at interest rates, starting from a minimum of 8% helps customers purchase their dream homes easily. Lending institutions in India sanction high-value loans coupled with exclusive features and relaxed terms and conditions. They go through a disciplined process to evaluate potential borrowers and decide on sanctioning or rejecting an application.

To avoid the chances of rejection, a suitable option is to use a housing loan eligibility calculator available online.


  • Select a longer repayment tenor with smaller EMIs.

  • Decrease your FOIR by paying off existing loans to increase eligibility.

  • Maintain a clean credit report and a good CIBIL score.

  • Apply with a co-applicant to increase your eligibility.

Everything about an eligibility calculator

Rejection of a loan application can create significant impacts on an individual’s credit profile. It brings down the CIBIL score, lowering his/her chances of credit approval in the future. Therefore, applicants must qualify for a home loan as per eligibility criteria of their chosen lender.

A housing loan eligibility calculator is designed to compute the loan amount an individual is eligible for instantly. The results are based on specific inputs from borrowers, such as:

  • Repayment tenor

  • Net monthly salary

  • Current obligations

  • Additional monthly income

Usually, funds up to 80% of a property’s current market value are available as housing loans. Checking beforehand lowers the chances of rejection, aids in better financial planning and eliminates the hassle of manual calculations. It’s easy to calculate your eligibility in a few clicks using online home eligibility calculator.

What are the general eligibility criteria?

While various lenders come with different home loan eligibility criteria, below are some of the general requirements:

  • Minimum 3 years of work experience.

  • A minimum salary of Rs. 25,000.

  • Age (for salaried applicants): 23 – 62 years.

  • Age (for self-employed applicants): 25 – 70 years.

  • Credit score: At least 750; the higher, the better.

Apart from the eligibility criteria, borrowers should also submit the documents required for a home loan to complete the application process. The basic documents needed may include –

  • Bank statements of the last 6 months.

  • Latest salary slips or Form 16.

  • Proof of Address.

  • Identity proof.

  • KYC documents.

  • Passport-sized photograph.

  • Proof of business vintage for self-employed applicants.

Additional documents, if needed in the loan processing, must also be submitted for quick approval.

In this context, some other factors, apart from housing loan eligibility calculator, can help borrowers avoid application rejection.

Additional tips to increase loan approval chances

  • Opt for a higher tenor

A longer tenor increases the chances of home loan approval as EMIs become shorter and more manageable. It minimises the risk of lenders as borrowers are likely to make timely repayments without defaulting.

  • Bring down the FOIR

FOIR or Fixed Obligations to Income Ratio signifies the existing liabilities of an individual in comparison to his/her income. Maintaining a FOIR below 30% – 50% increases the chances of approval. Applicants should try to pay off their existing loan EMIs and credit card bills before applying for a housing loan.

  • Hold a clean credit profile

Although a secured loan, holding a good CIBIL score and a credit report with no record of default simplifies the approval process. Adopt a financial discipline to avail housing loan with the best features easily.

  • Go for a joint home loan

Applying for a home loan with co-applicant increases one’s chances of approval as lenders consider the eligibility of both the applicants. Moreover, a joint housing loan means sharing the debt and options for a higher loan amount.

Additionally, know the factors that may affect your loan eligibility before applying.

Evaluate these factors and utilise a housing loan eligibility calculator to know if you qualify. Opt for high-financing and purchase the best property in the market with no financial woes.

Additional Read: Beneficial Ways to Improve Your Eligibility for a Home Loan