Home Loan Eligibility Calculator
Find the maximum home loan amount you qualify for based on your salary and existing EMIs. Free, privacy-first — inputs never leave your browser.
Details
Result
Max Home Loan
₹57,61,542
Max EMI Allowed
₹50,000
As % of Income
50.0%
For estimation only. Not professional financial, tax, or legal advice. Consult a qualified advisor before making decisions. Full disclaimer.
What drives home loan eligibility?
Home loan eligibility in India is governed by the RBI's Master Direction on housing finance and each lender's internal credit policy. Banks assess three things together: your repayment capacity (income, EMIs, FOIR), the property (LTV cap, legal title), and your credit history (CIBIL / Experian score). The RBI ceiling on Loan-to-Value is 90% for loans up to ₹30 lakh, 80% for ₹30-75 lakh, and 75% above ₹75 lakh — see the official RBI Master Directions.
How banks compute the maximum EMI you can afford
Lenders apply a Fixed Obligations to Income Ratio (FOIR) test:
Max EMI = (Net monthly income × FOIR cap) − existing EMIs
FOIR cap is typically 50% for incomes below ₹1 lakh/month, 55% up to ₹2 lakh, and 60-65% above ₹2 lakh. The eligible loan amount is then back-calculated from Max EMI using the standard EMI formula at the bank's offered rate and maximum tenure (up to 30 years or retirement age, whichever is earlier).
Worked example — ₹1.5 lakh monthly salary
Net salary ₹1,50,000, no other EMIs, FOIR cap 55% → Max EMI ₹82,500. At 8.5% for 25 years, that EMI supports a loan principal of roughly ₹1.02 crore. If you already have a ₹15,000 car-loan EMI, headroom drops to ₹67,500 and the eligible home loan shrinks to ~₹83.4 lakh. Extending tenure to 30 years lifts the principal back up to ₹88 lakh — at the cost of paying nearly ₹80 lakh extra in interest over the life of the loan.
Regulatory and tax context
- LTV caps: 90/80/75% by loan size per RBI circular DBR.BP.BC.No.44/08.12.015/2015-16.
- Risk weights: lower LTV loans attract lower capital charges — banks price them cheaper.
- Section 24(b): interest deduction up to ₹2 lakh (self-occupied, old regime).
- Section 80C: principal repayment up to ₹1.5 lakh/yr within the overall cap.
- Section 80EEA: additional ₹1.5 lakh for first-time buyers on affordable housing (sanctioned up to 31 Mar 2022).
- Co-applicant income: spouse or parent income can be clubbed — increases eligibility by 40-80%.
Common mistakes
- Stretching to maximum eligibility. Banks approve up to FOIR 60-65%, but living on 35% of income for 25 years is painful — target 40% EMI-to-income.
- Ignoring stamp duty and registration. These are 5-8% of property value and not covered by the loan.
- Over-tenuring to pass FOIR. A 30-year loan nearly doubles lifetime interest vs a 20-year loan.
- Not checking CIBIL first. Scores below 750 trigger a 25-75 bps premium; fix errors before applying.
- Forgetting the margin money. You must bring in 20-25% of the property cost as own contribution.
Related calculators and reading
See also: Home Loan EMI Calculator, EMI Calculator, Stamp Duty Calculator, Rent vs Buy, glossary: Amortization.
Common questions about Loan Eligibility
How much home loan am I eligible for on my salary?+
A rough rule: you can get 55-65 times your net monthly income as home loan. ₹80,000 take-home → ₹48-52 lakh eligibility at current 8.75% rates over 25 years. Banks apply FOIR of 50%-55% so your EMI cannot exceed that share of income. Exact eligibility also depends on co-applicant income, CIBIL score, employer category, and property value (LTV capped at 75%-90% depending on loan size).
Does CIBIL score affect loan eligibility?+
Critically. Score 800+ gets best rates (8.30%-8.50%) and 90% LTV. 750-799 qualifies at standard rates. 700-749 faces 0.25%-0.50% premium and stricter FOIR. Below 700, most banks reject home loans outright or offer only 65%-70% LTV at 1%-2% higher rates. Check score free annually at CIBIL, Experian, or Equifax. Settle defaults before applying — each settled (not "closed") account hurts for 7 years.
Can I add my spouse to increase eligibility?+
Yes — called joint home loan. Both incomes pool for FOIR calculation, often doubling eligibility. Both can claim tax benefits separately: each gets ₹2 lakh interest deduction under Section 24(b) and ₹1.5 lakh principal under 80C. Co-applicant must be a legal co-owner of the property too, not just loan co-applicant. Parents and children can also be co-applicants.
What is LTV ratio and how does it limit my loan?+
Loan-to-Value = loan amount ÷ property value. RBI caps LTV at 90% for loans up to ₹30 lakh, 80% for ₹30-75 lakh, and 75% above ₹75 lakh. So on a ₹1 crore property, max loan is ₹75 lakh. The balance (25%-10%) must come as own contribution. Stamp duty and registration (5%-8% of property value) are on top of down payment — budget accordingly.
How do my existing EMIs affect eligibility?+
They reduce FOIR headroom. If you pay ₹20,000 in car+personal loan EMIs on ₹1 lakh income, bank assumes ₹30-35,000 is available for the home loan (at 50-55% FOIR). This can reduce eligibility by ₹25-30 lakh. Strategy: close small personal loans and zero out credit card balances 3-6 months before applying. Paying off EMIs also gives a CIBIL score bump.
Are bonuses and variable pay counted for eligibility?+
Partially. Banks average the last 2-3 years of bonus/variable and count 50%-75% of it toward eligibility. One-off joining bonuses are excluded. For self-employed: banks use ITRs of last 3 years, averaging profits (often taking lower of latest or average). Submit consistent, clean income proof — sudden jumps raise underwriting scrutiny and may delay sanction.