Home loan eligibility is the maximum loan a bank will offer based on your income, existing EMIs, and chosen tenure. Banks use the FOIR (Fixed Obligation to Income Ratio) — typically 40-55% — to cap your total monthly EMIs.
What is Loan Eligibility?
Banks do not just lend based on what you ask for — they lend based on what you can repay without default. The standard test is FOIR: total EMIs (existing + new) should not exceed a percentage of your net monthly income. Most lenders cap at 40-55%, with stricter caps for lower incomes and higher caps for higher incomes.
From your FOIR ceiling, the maximum monthly EMI you can support is computed. From that EMI, working backwards through the EMI formula, gives the maximum loan amount at a given rate and tenure.
Other factors affect actual sanction: credit score (CIBIL 750+ for best rates), employment stability, age (younger = longer tenure possible), property value (LTV cap of 75-90% in India). The calculator gives a math-based estimate; actual eligibility may be higher or lower based on these qualitative factors.
FOIR-based eligibility
- Income
- Net monthly income—take-home salary
- FOIR
- FOIR limit—40-55% as decimal
- r
- Monthly rate—annual rate / 12 / 100
- n
- Tenure in months—loan duration × 12
How to use this calculator
Five inputs control your eligibility — net income, existing EMIs, rate, tenure, FOIR.
Enter net monthly income
Your salary AFTER all deductions (PF, tax, professional tax) — the amount that hits your bank account.
Enter existing EMIs
Sum of all current monthly EMIs (car, personal, credit card minimums).
Set the loan rate
Use the rate the bank quotes you. Lower CIBIL → higher rate.
Set the tenure
Longer tenure → higher eligibility (lower EMI per ₹ borrowed). 25-30 years is common for home loans.
Set FOIR limit
50% is typical for middle incomes. Higher earners may get 55-60%; lower earners 40%.
When to use it
Pre-house-hunt budgeting
Know your maximum loan before browsing properties. Saves time and prevents falling in love with unaffordable homes.
Joint application planning
Run the calculator with combined income to see how much more you can borrow with a co-applicant.
Income increase impact
Plug in expected post-promotion income to see how much more you could borrow.
EMI consolidation
Pay off existing EMIs first to free up FOIR headroom for a bigger home loan.
Glossary
- FOIR
- Fixed Obligation to Income Ratio. Maximum percentage of net income that can go to all EMIs combined.
- LTV (Loan to Value)
- Maximum loan as a fraction of property value. RBI caps at 75-90% depending on loan size.
- CIBIL score
- Credit score from 300-900. Banks mostly want 750+ for home loans.
- Co-applicant
- Joint borrower whose income is added to yours for eligibility. Must usually be a spouse or close family.