Tips to Increase Home Loan Eligibility: A home loan acts as a bridge between your housing dream and reality. Home loan eligibility is one of the simplest among loans. Any Indian citizen between the age of 21 and 65 is eligible to apply for a home loan.

However, since home loans are a long-term financial liability, lenders evaluate a borrower’s credit score and financial health before approving the loan.

If the borrower’s eligibility is any less than the benchmark, lenders increase the interest rate to minimize their risk.

This article informs you of the top-5 tips you may need to increase your home loan eligibilityand avail of low-interest home loans.

Top Tips to Increase Home Loan Eligibility

Add an Applicant


Adding an applicant to the loan is a foolproof way to increase your eligibility. For instance, you can add an applicant whose income is higher than you. The lender will club the income of both applicants while calculating the eligibility.

Remember, the co-applicant must be your blood relative or family member. You may use a home loan eligibility calculator to analyses the benefit of adding an applicant and decide accordingly.

Become Debt-Free

Borrowers often pile up loans. They mix loans like property loan, personal loan, car loan, etc. When you apply for a home loan before clearing off the existing debt, lenders consider your eligibility low.

If you want to increase your eligibility, consider clearing off all debts and apply on a fresh note.

Ensure to use a home loan eligibility calculator before applying for the loan.

Disclose Additional Income Sources

You might have various income sources in addition to salary or business income. For example, you may earn a fixed amount every month from rent.

Additionally, you may have invested in the stock market or hold mutual fund units and earn dividend once in a while. Besides this, you may have gold jewelry in your home. Inform the lender about your net worth to increase the home loan eligibility.

A home loan eligibility calculator gives you an estimate without factoring in the additional income sources. Informing your lender above such sources can increase your eligibility.

Increase the Repayment Term

Home loans generally come with a repayment term of thirty years. However, borrowers often opt for a shorter tenure, as it enables them to clear off the debt earlier. But, when you choose a short loan term, your lender considers the loan risky and increases the rates.

Conversely, when you opt for an extended term, the EMI comes down, and you can pay the amount without any hassle. A home loan eligibility calculator gives you accurate estimates about the eligibility, loan amount, and EMI.

Aim for a Credit Score Above 750

Often, a borrower’s loan application gets rejected only because their credit score is less than 750. The borrower’s credit score is directly linked to their home loan eligibility.

A high credit score increases the probability of loan approval. You may use a home loan eligibility calculator to check the EMI and the loan amount.


Your eligibility depends on many factors. Fortunately, there are various ways to increase your eligibility. A good starting point can be a home loan eligibility calculator since it informs you of your eligibility and helps you take timely measures.

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