How do banks decide home loan eligibility?

Banks use FOIR — the Fixed Obligations to Income Ratio. They cap your total EMIs at a share of net monthly income, usually 40–55%, with 50% common. The room left after your existing EMIs is the EMI they'll allow, which is back-calculated into a loan amount at the given rate and tenure.

What income counts for eligibility?

Net take-home monthly income is used. Stable additional income can help, while existing EMIs on other loans reduce the room available for a new one.

Does this include the down payment?

No. Banks lend only up to a share of the property value (LTV), and stamp duty and registration are paid from your own funds, so the property you can buy is usually more than the loan amount shown here.

Home Loan Eligibility Calculator (India)

Home Loan Eligibility Calculator

Find out how much home loan your salary supports — the way banks actually work it out. Using the FOIR method, the calculator caps your total EMIs at a share of income and back-calculates the loan you'd qualify for.

How it's calculated

Banks cap your total monthly loan obligations at a fraction of net income — the FOIR. At a 50% FOIR on ₹75,000 income, total EMIs can't exceed ₹37,500; subtract any existing EMIs and the balance is what's available for the new loan. That eligible EMI is then converted into a loan amount using the interest rate and tenure, by reversing the EMI formula.

Eligible loan = eligible EMI × [1 − (1+r)⁻ⁿ] ÷ r. Most banks use 40–55% FOIR; 50% is the common default. A higher credit score can improve your rate and terms.

Frequently asked questions

How can I increase eligibility?

Clear existing EMIs, add a co-applicant's income, choose a longer tenure, or improve your credit score for a better rate — each raises the loan you qualify for.

Is a longer tenure better?

It raises eligibility and lowers EMI, but you pay more total interest. Balance it against how fast you want to be debt-free — then test prepayment.

Self-employed?

Lenders often apply a lower FOIR (40–45%) and assess income from ITRs and financials — drop the FOIR slider to see a conservative figure.

Home Loan Eligibility Calculator

Your finances

Repayment schedule for this loan

How it's calculated

Frequently asked questions