Home Loan Eligibility Calculator
Before you fall in love with a flat, find out what a lender will actually sanction. Income, existing EMIs, rate and tenure — that is the whole equation.
Your profile
Most Indian lenders use 40–55%. Higher incomes are allowed a higher share.
Result
Your existing EMIs already use up the allowed share of your income. No further loan is likely to be sanctioned until some of that is cleared.
An estimate, not a sanction. Lenders also weigh your credit score, job stability, age at loan maturity, property valuation and legal clearance. Registration, stamp duty and processing fees sit on top of the down payment above.
How lenders actually decide
Affordable EMI = (Income × FOIR%) − Existing EMIs
Loan = EMI × [(1 + r)n − 1] / [r × (1 + r)n]
FOIR (Fixed Obligation to Income Ratio) is the share of your monthly income a bank will let go toward all EMIs combined. It is the single biggest lever in the whole calculation, and it is not negotiable — but it does rise with income. Someone earning ₹40,000 might be capped at 40%; someone earning ₹3 lakh may be allowed 60%.
Five ways to raise your eligibility
- Close a small loan first. Clearing a ₹8,000 car EMI can add roughly ₹9–10 lakh of home-loan eligibility at typical rates.
- Add a co-applicant. A working spouse's income is usually clubbed in full — often the fastest way to a bigger sanction.
- Stretch the tenure. Going from 15 to 25 years raises eligibility sharply. It also raises total interest sharply, so treat it as a last resort.
- Fix your credit score before applying. Below roughly 750 you pay a higher rate, which directly shrinks the sanctioned amount.
- Declare all income. Rent, bonus and variable pay count at most lenders if you can document two to three years of it.
One warning the brochures leave out: the maximum you are eligible for is rarely the amount you should borrow. An EMI at the full FOIR limit leaves nothing for emergencies, and the first job change or medical bill turns it into a crisis. Many planners suggest keeping the home-loan EMI under roughly 30% of take-home, well below what any bank will happily sanction.
Frequently asked questions
How do banks decide my home loan eligibility?
The core rule is FOIR — the Fixed Obligation to Income Ratio. Lenders allow a fixed share of your monthly income (typically 40–55%, rising with income) to go toward all EMIs combined. Subtract the EMIs you already pay, and whatever is left is the EMI they will let you take on. That EMI is then converted into a principal using the standard loan formula.
Does a longer tenure increase how much I can borrow?
Yes, substantially — a longer tenure spreads the same EMI over more instalments, so it services a bigger principal. It also raises total interest sharply. Going from 15 to 25 years on the same loan can nearly double what you pay in interest over the life of the loan, so treat tenure as the last lever, not the first.
How much down payment do I need?
Regulators cap how much of the property value a bank may fund. In practice that means roughly 80% for mid-sized loans, and as low as 75% for high-value properties — so plan for 20–25% from your own pocket. Stamp duty, registration and processing fees are excluded from the funded amount, and typically add another 6–8% of the property value.
How do I improve my eligibility?
Closing a small existing loan is the fastest route — clearing an ₹8,000 car EMI can add around ₹9–10 lakh of home-loan eligibility at typical rates. Adding an earning co-applicant usually clubs their income in full. Fixing a credit score below roughly 750 lowers your rate, which directly raises the sanctioned amount. Documenting rent, bonus or variable pay can also help at most lenders.
Should I borrow the maximum I am eligible for?
Usually not. Eligibility is what a lender will risk, not what is comfortable to carry. An EMI at the full FOIR limit leaves no room for a job change, a medical bill or a rate rise on a floating loan. A widely used guideline is to keep the home-loan EMI under about 30% of take-home pay — well below what most banks will happily sanction.
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