How is home loan eligibility calculated?

Banks use FOIR (Fixed Obligation to Income Ratio) - typically 40–50% of monthly income. Max EMI = Income × FOIR − Existing EMIs. Max loan = Max EMI × loan factor (based on rate and tenure).

FOIR (Fixed Obligation to Income Ratio) is the percentage of your monthly income that can go toward loan EMIs. Most banks set this at 40–50%. For example, on ₹1L monthly income, max total EMIs = ₹40,000–₹50,000.

Does credit score affect loan eligibility?

Yes. A CIBIL score of 750+ qualifies you for the best rates and maximum eligibility. Below 650 significantly reduces eligibility. This calculator assumes a good credit score; actual bank approval may vary.

Can both spouses' income be combined?

Yes. Most banks allow co-applicant income. If your spouse is a co-borrower, the combined income is used to calculate FOIR, increasing your maximum eligible loan significantly.

What is FOIR and how does it affect my home loan eligibility?

FOIR (Fixed Obligation to Income Ratio) is the percentage of your gross monthly income already committed to loan EMIs. Banks typically cap FOIR at 40-50% for home loans. Formula: Eligible EMI = Monthly Income x FOIR limit - Existing EMIs. Example: Rs. 1 lakh salary, 45% FOIR limit, existing car loan EMI Rs. 12,000 - eligible new EMI = Rs. 45,000 - Rs. 12,000 = Rs. 33,000. At 8.5% for 20 years, this supports a loan of approximately Rs. 38 lakh. To improve eligibility: close existing loans before applying, add a co-applicant income, or increase your down payment to reduce the required loan amount.

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Home Loan Eligibility Calculator

Find out the maximum home loan you are eligible for based on income, existing EMIs, and loan tenure.

Monthly Income (₹)

Existing EMIs / month (₹)

FOIR (Fixed Obligation to Income Ratio)50%

30%50%65%

Interest Rate (% p.a.)

Loan Tenure (years)

CIBIL Score Range

Maximum Eligible Loan Amount

₹57.62 L

Effective rate: 8.50%

Max EMI: ₹50,000/mo

Estimated eligibility by bank (indicative)

State Bank of India	8.25% p.a.	₹58.68 L
HDFC Bank	7.9% p.a.	₹60.22 L
ICICI Bank	8.5% p.a.	₹57.62 L
Kotak Mahindra Bank	8.25% p.a.	₹58.68 L
Axis Bank	8.5% p.a.	₹57.62 L

Actual loan approval depends on credit score, employment type, property value, and bank policies. These are indicative estimates.

About the Home Loan Eligibility Calculator

Banks use your net monthly income, existing liabilities, and credit score to determine how much home loan you're eligible for. The standard rule is that your total EMI (including the new home loan) should not exceed 40–50% of your net take-home salary. This calculator estimates your maximum loan eligibility based on the bank's FOIR (Fixed Obligation to Income Ratio).

Home Loan Eligibility

Max EMI = Net Monthly Income × FOIR − Existing EMIs · Max Loan = Max EMI × ((1+r)^n − 1) / (r × (1+r)^n)

FOIR = 40–50% (varies by bank and income level) · r = Monthly interest rate · n = Tenure in months · Net income = Take-home salary after all deductions

Worked Example

Net monthly income ₹1,00,000, existing EMIs ₹15,000, at 8.5% for 25 years

Net Monthly Income:₹1,00,000

Existing EMIs:₹15,000

Interest Rate:8.5% p.a.

Tenure:25 years

Available EMI capacity ≈ ₹35,000 (at 50% FOIR) · Eligible loan amount ≈ ₹43.2 lakh

Tips & Insights

1
Clear existing loans or credit card dues before applying for a home loan - it directly increases your eligibility.
2
Adding a co-applicant (spouse or parent) with income can significantly boost the combined eligible loan amount.
3
A CIBIL score above 750 unlocks the best home loan rates and higher eligibility multiples at most banks.
4
Banks typically offer loans up to 90% of property value for amounts below ₹30L - higher value properties get 75–80% LTV.
5
Consider a longer tenure to reduce EMI burden and improve eligibility - you can always prepay later.

Why this matters for you

Home loan eligibility is often misunderstood - many buyers assume any bank will lend them however much they need. In reality, even with ₹1.5L monthly income, your eligibility may be capped at ₹60–70L depending on liabilities and credit history. Knowing your eligibility before property hunting saves time and prevents disappointment.