Home Loan Eligibility Calculator
Calculate your maximum home loan eligibility using the standard FOIR (Fixed Obligation to Income Ratio) method that all Indian banks use. Factor in your income, existing EMIs, age (which caps tenure), and employment type. Returns the maximum loan amount, suggested property budget, and required down payment.
How this calculator works
Banks use a simple rule to decide your maximum home loan: your total monthly EMIs (existing + new home loan) cannot exceed a fixed percentage of your net monthly income.
FOIR — the key concept
FOIR (Fixed Obligation to Income Ratio) is the percentage of your monthly income that banks allow to go into EMIs. Typical FOIR by income level:
- Income < ₹50,000/m: FOIR around 35-40%
- ₹50,000 – ₹1 lakh/m: FOIR around 45-50%
- > ₹1 lakh/m: FOIR around 50-55%
Higher income = higher FOIR allowed because you have more residual income for living expenses even after EMIs. Govt/MNC employees often get 5% higher FOIR than other private-sector employees due to lower default risk.
Tenure cap
Banks cap loan tenure at retirement age: 60 for salaried, 65-70 for self-employed. So if you're 45 years old applying for a 20-year loan, the bank will offer 15 years (until age 60) — which means a higher EMI for the same loan amount.
The formula
Max EMI = (Income × FOIR) − Existing EMIs
Max Loan = Max EMI × [(1+r)^n − 1] ÷ [r × (1+r)^n]
where r = monthly rate, n = tenure in months
Down payment requirement
RBI rules: maximum 80% LTV (Loan-to-Value) for home loans up to ₹75 lakh, 75% for ₹30-75 lakh, 90% only for affordable housing under ₹30 lakh. So expect to fund 10-25% of the property value as down payment from your own savings.
Worked example
Example — Salaried employee, ₹1,00,000 income, age 32, no existing EMIs:
- FOIR (income ₹1L, salaried govt/MNC): 50%
- Max EMI: ₹50,000
- Available for new EMI: ₹50,000 (no existing EMIs)
- At 8.5% interest, 20-year tenure
- Max loan: ₹57.83 lakh
- With 20% down payment: property budget ₹72.29 lakh
- Down payment needed: ₹14.46 lakh
Example — Same person but with ₹15,000/m car loan EMI:
- Max EMI still ₹50,000
- Available for new EMI: ₹50,000 − ₹15,000 = ₹35,000
- Max loan drops to: ₹40.48 lakh
- Property budget drops to ₹50.6 lakh
- Existing EMIs cost you ₹17 lakh of home loan eligibility
Frequently asked questions
What if my actual income is higher than what I show on paper?
Banks look at your ITR-declared income (for self-employed) or salary slips + Form 16 (for salaried). Cash income that's not in your ITR doesn't count. If you're self-employed and want higher eligibility, file 2-3 years of consistent ITRs declaring your full income.
Can I show my spouse's income to get higher loan?
Yes — applying as joint borrowers (with spouse, parent, or sibling) lets banks consider combined income. This typically increases eligibility by 60-90% (banks don't add 100% because of contingencies). Both names appear on the loan and the property.
Does my CIBIL score affect eligibility?
Not directly via the FOIR formula, but banks reject applications with CIBIL below 650-700. Score above 750 gets you the lowest interest rate. Score 700-750 gets standard rate. Below 700 means higher rate or rejection. Improve your score 6+ months before applying.
Why does the calculator suggest a property budget?
Because banks fund only 75-90% of property value (LTV cap). The rest must come from your savings as down payment. Property budget = loan eligibility ÷ 0.80 (assuming 20% down). If you have more savings, you can buy a bigger property.
Can I increase eligibility by extending tenure?
Yes, longer tenure = lower EMI = higher loan eligible. But longer tenure also means much more total interest. A ₹50 lakh loan at 8.5% costs ₹54L interest over 20 years vs ₹95L over 30 years. Maximize down payment + minimize tenure if you can afford the EMI.
What's the realistic maximum FOIR banks allow?
55% for high-income salaried (above ₹2 lakh/m) at premium banks. Private sector lenders may go to 60% for excellent credit profiles. NBFCs sometimes allow 65% but at 1-2% higher rate. Below ₹50,000 income, expect 40% maximum.
Do banks include credit card minimum payments?
Yes. Credit card outstanding (5% minimum due) is treated as an EMI obligation. ₹1 lakh credit card balance = ₹5,000/m EMI in their calculation. Pay down credit card debt before applying — it's the easiest way to improve eligibility.
Should I use my employer's tie-up bank?
Tie-up banks often offer 10-25 bps lower interest and faster approval. But always compare with at least 2-3 other lenders. Sometimes your CIBIL score gets you better terms elsewhere despite no employer tie-up.