How to Calculate & Increase Home Loan Eligibility?


Almost 90% of Home are purchased through Home Loans. Home Loans provide a good amount of Income Tax deductions under section 80C & Section 24.

How Home Loan Eligibility Amount is Calculated?

Home Loan Eligibility Amount =

[[Monthly fixed Income x 50 %] - Other EMI’s]x1000

For Example If your monthly income is say Rs.70000/- & you already have other EMI’s of say about Rs.20000/-.

Than your Home Loan Eligibility Amount = [[70000 x 50%] – 20000]x 1000 = Rs. 15,00,000/-

How this Home loan eligibility can be increased?

  1. Through Joint Application of Home Loan with your Spouse.
  2. By paying off for other EMI’s.
  3. By decreasing the amount of other EMI’s.
  4. By adding some other income.
  5. By increasing Loan Tenure.