Reduce existing debt
Closing or lowering costly unsecured loans can improve the income available for a new home-loan EMI.
Money Tools · Loan Planning
Home Loan Eligibility Calculator
Estimate the maximum home loan amount you're likely to qualify for, based on your monthly income, existing EMIs, interest rate and tenure — using the same FOIR method most Indian banks apply.
Income & loan details
Loan
Ledger
Ledger
Entry No. 01 — Eligible loan amount
₹36.4 L
estimated maximum home loan
Eligible monthly EMI₹40,000
Income used for EMIs (FOIR)₹40,000
Less existing EMIs₹0
Total interest over tenure₹51.6 L
Estimate only — actual eligibility also depends on credit score, age, employment type and lender policy.
Strengthen your application
Ways to improve home loan eligibility
Lenders generally assess whether your documented income can comfortably support the proposed EMI after existing obligations. Eligibility is therefore different from property value: a high-value property does not automatically produce a high sanction if monthly repayment capacity is limited.
Add a co-applicant
An eligible earning co-applicant may increase combined repayment capacity, subject to lender policy.
Build a clean profile
Stable income records, timely repayments and consistent bank statements help lenders assess risk.
A longer tenure may increase the eligible amount by reducing the calculated EMI, but it can also increase total interest. Compare affordability, down payment and long-term cost before choosing the maximum amount offered.
How it works
How to use the home loan eligibility calculator
Enter your monthly net income
Use your in‑hand monthly salary, or average net monthly income if self‑employed.
Add existing EMIs
Include car loans, personal loans and any credit card EMIs — these directly reduce how much home loan EMI you can take on.
Adjust the FOIR
Most banks cap total EMI obligations at 40–60% of monthly income; 50% is a reasonable mid‑range default.
Set rate and tenure
The eligible loan amount is worked out backward from your eligible EMI, the interest rate and tenure.
Understanding eligibility
How banks calculate home loan eligibility
Most Indian lenders use the Fixed Obligation to Income Ratio (FOIR) method: they add up all your existing EMIs plus the proposed home loan EMI, and check that the total doesn't exceed a set percentage of your monthly income — commonly 40% to 60%, depending on your income bracket, employment type and the lender's internal risk policy.
| Step | Calculation |
|---|---|
| 1. Maximum EMI budget | Monthly income × FOIR% |
| 2. Eligible home loan EMI | Maximum EMI budget − existing EMIs |
| 3. Eligible loan amount | Eligible EMI converted to a loan amount using the interest rate and tenure |
Factors that influence your actual approval
- Credit score — a score above 750 typically improves both eligibility and the interest rate offered.
- Age and tenure — lenders usually cap the loan tenure so it ends before you reach retirement age (often 60–65).
- Co-applicant income — adding a spouse or parent as a co-applicant can raise the combined eligible loan amount.
- Employment type — salaried employees at established companies and government employees often get more favourable FOIR limits than self-employed applicants.
FAQ
Frequently asked questions
How do banks decide home loan eligibility?
Primarily via the FOIR method — capping total EMIs (including the proposed home loan) at 40–60% of monthly income — combined with credit score, age, employment stability and existing liabilities.
What is FOIR?
Fixed Obligation to Income Ratio — the maximum share of monthly income lenders allow toward all EMIs combined, typically 40–60% depending on income slab and lender policy.
Do existing loans reduce my eligibility?
Yes — ongoing EMIs for car loans, personal loans or credit cards are subtracted from your eligible EMI budget before the home loan amount is calculated.
Does a longer tenure increase eligibility?
Yes — a longer tenure lowers the EMI for a given loan amount, letting a larger loan fit within your eligible EMI budget, though it raises total interest paid.
Will my bank approve exactly this amount?
Not necessarily — this is an estimate. Final approval also depends on credit score, property valuation, employer category, co-applicant income and lender-specific policy.
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