Home Loan Eligibility Calculator

Banks calculate the maximum home loan you can get using FOIR (Fixed Obligation to Income Ratio), typically set at 40-50% of gross monthly income. Step 1: Maximum allowable total EMI = Income x FOIR. Step 2: Available EMI for home loan = Max EMI - Existing EMIs (car loan, personal loan, credit card minimums). Step 3: Maximum loan = Available EMI x loan factor, which depends on interest rate and tenure. For ₹1L income with 50% FOIR and no existing EMIs, at 8.5% for 20 years, the maximum eligible loan is approximately ₹58 lakh.

FOIR (Fixed Obligation to Income Ratio) is the percentage of your gross monthly income already committed to all loan EMIs combined - home loan, car loan, personal loan, credit card minimum dues. Banks cap this at 40-50% for home loans; some public sector banks go up to 55% for high-income applicants. Example: ₹1L salary, 45% FOIR limit, existing car loan EMI ₹12,000 - eligible new home loan EMI = ₹45,000 - ₹12,000 = ₹33,000. At 8.5% for 20 years, this supports a loan of approximately ₹38 lakh. To improve FOIR: close small loans and credit cards before applying for a home loan.

A CIBIL score of 750 or above qualifies you for the lowest available rates from most banks. Scores between 700 and 749 typically attract a 0.25-0.5% rate premium. Scores between 650 and 699 attract 0.5-1% premium, and some banks may reject outright. Below 650, most banks either decline or offer very high rates. Even a 0.5% rate difference on a ₹50 lakh loan over 20 years translates to roughly ₹3.5-4 lakh in extra interest. Improving your CIBIL score - by clearing existing dues, reducing credit card utilisation, and avoiding multiple loan applications simultaneously - is one of the highest-return financial moves before applying for a home loan.

Yes - most banks allow a co-applicant (typically spouse, parent, or earning child) to combine income for higher eligibility. Both applicants' incomes are added to compute the FOIR limit, and both their existing EMIs are deducted. If one spouse earns ₹80,000 and the other earns ₹60,000, the combined income of ₹1.4L at 50% FOIR supports a much larger loan than either alone. However, both applicants' CIBIL scores are evaluated - a low score from either co-applicant can reduce eligibility or increase the rate. The co-applicant also becomes equally liable for repayment and the property is typically co-owned.

Salaried employees: net monthly salary (banks typically use gross salary or in-hand depending on the bank). Self-employed: average of last 2-3 years' net profit from ITR filed. Rental income: usually 50-70% of rental receipts are counted after deductions. Bonus and overtime: some banks include a proportion if consistent over 2+ years; others exclude them entirely. Agricultural income and foreign income (NRIs): treated case-by-case with additional documentation. Banks generally do not count income from part-time gigs, informal sources, or investments unless reflected in ITR. For self-employed applicants, GST registration and consistent ITR filing significantly improve approval chances and eligible amount.

Several strategies improve the eligible loan amount: (1) Close existing small loans and personal loans before applying - each reduces your available FOIR. (2) Add a co-applicant with stable income - doubles or significantly raises the income base. (3) Opt for a longer tenure (25-30 years) - the same EMI capacity supports a larger loan at a longer tenure, though total interest paid increases. (4) Improve your CIBIL score to 750+ - qualifies you for lower rates, which means the same EMI supports a larger principal. (5) Choose a bank with a higher FOIR limit - some banks allow 55% FOIR for high earners, versus 40% at others. (6) Clear outstanding credit card balances - minimum monthly payments count as existing EMIs in FOIR calculations.

Self-employment income (business profits, professional fees, rental income) is treated more conservatively by most lenders compared to salaried income. Banks typically average the last 2 to 3 years of net profit from filed ITRs and use this average as the monthly income for FOIR calculation. Irregular years or years with one-time income are sometimes discounted. Documentation requirements are higher: ITRs for 3 years, profit and loss statements, balance sheets (CA certified), bank statements for 12 to 24 months, and sometimes GST returns. Many banks require a minimum of 3 years of ITR filing with consistent or growing income. The maximum loan eligibility for a self-employed borrower with the same income as a salaried borrower is often 5 to 10% lower because the income is treated as less stable. Maintaining a strong CIBIL score (750+) and demonstrating consistent income growth over 3 years significantly improves both approval probability and eligibility amount.