Loan Eligibility Calculator 2025

All About Loan Eligibility

Understanding loan eligibility is crucial before applying for any loan. Lenders assess various factors to determine your eligibility, ensuring that you can repay the loan without financial strain. Below, we break down the eligibility criteria for different loan types, factors that influence eligibility, and tips to improve your chances of approval.

Home Loan Eligibility

Home loans are designed for purchasing or constructing a residential property. Lenders typically look at the following criteria:

• Age: Applicants should be between 21 and 65 years at the time of loan maturity.
• Income: A minimum monthly income of ₹20,000 is required, though higher incomes increase eligibility for larger loans (up to ₹1 crore).
• Credit Score: A score of 650 or above is preferred; scores above 800 can secure better interest rates.
• Employment Stability: Salaried individuals need at least 2 years of work experience; self-employed individuals need 3 years of business continuity.
• Property Value: The loan amount is often capped at 80-90% of the property’s market value.

Factors Affecting Eligibility: High existing debts, low credit score, or an unstable job can reduce your eligibility.

Tips to Improve Eligibility: Reduce existing debts, improve your credit score by paying bills on time, and consider adding a co-applicant with a stable income.

Personal Loan Eligibility

Personal loans are unsecured loans for personal expenses like medical emergencies or weddings. Key eligibility criteria include:

• Age: Applicants should be between 21 and 60 years.
• Income: A minimum monthly income of ₹15,000 is required; higher incomes can qualify for loans up to ₹50 lakh.
• Credit Score: A score of 600 or above is necessary; scores above 750 ensure better terms.
• Employment: At least 1 year of work experience for salaried individuals and 2 years of business continuity for self-employed.

Factors Affecting Eligibility: High debt-to-income ratio, poor credit history, or frequent job changes can impact approval.

Tips to Improve Eligibility: Maintain a good credit score, avoid multiple loan applications at once, and show proof of stable income.

Car Loan Eligibility

Car loans help finance the purchase of a new or used vehicle. Eligibility criteria are as follows:

• Age: Applicants should be between 21 and 65 years.
• Income: A minimum monthly income of ₹20,000 is required; loans can go up to ₹70 lakh depending on income.
• Credit Score: A score of 650 or above is preferred.
• Employment: Salaried individuals need 1 year of experience; self-employed need 2 years of business continuity.
• Vehicle Type: The loan amount depends on the car’s value, typically covering 80-100% of the on-road price.

Factors Affecting Eligibility: Low credit score, high existing EMIs, or choosing a car beyond your repayment capacity can reduce eligibility.

Tips to Improve Eligibility: Opt for a less expensive vehicle, improve your credit score, and ensure your debt-to-income ratio is below 50%.

Business Loan Eligibility

Business loans support business expansion, working capital, or equipment purchase. Eligibility criteria include:

• Age: Applicants should be between 25 and 65 years.
• Income: A minimum monthly turnover of ₹50,000 is required; loans can go up to ₹5 crore.
• Credit Score: A score of 700 or above is preferred.
• Business Vintage: At least 3 years of business operations with consistent profits.
• Business Plan: A solid business plan may be required for larger loans.

Factors Affecting Eligibility: Poor business financials, low credit score, or lack of collateral can hinder approval.

Tips to Improve Eligibility: Maintain proper financial records, improve your credit score, and provide collateral if possible.

Mortgage Loan Eligibility

Mortgage loans are secured loans against property for various purposes. Eligibility criteria are:

• Age: Applicants should be between 25 and 65 years.
• Income: A minimum monthly income of ₹30,000 is required; loans can go up to ₹2 crore.
• Credit Score: A score of 650 or above is necessary.
• Property Value: The loan amount is typically 50-70% of the property’s market value.
• Employment: Salaried individuals need 2 years of experience; self-employed need 3 years of business continuity.

Factors Affecting Eligibility: Low property value, poor credit score, or high existing debts can reduce eligibility.

Tips to Improve Eligibility: Choose a high-value property, clear existing debts, and ensure your credit score is above 700.

Education Loan Eligibility

Education loans fund higher education expenses. Eligibility criteria include:

• Age: Applicants (or co-applicants) should be between 18 and 40 years.
• Income: A co-applicant’s monthly income should be at least ₹15,000; loans can go up to ₹40 lakh.
• Credit Score: A co-applicant’s score of 600 or above is required.
• Course and Institution: Admission to a recognized institution and course is mandatory.

Factors Affecting Eligibility: Lack of a co-applicant, poor credit score of the co-applicant, or admission to a non-recognized institution can affect approval.

Tips to Improve Eligibility: Choose a reputed institution, ensure the co-applicant has a good credit score, and provide proof of admission.