Your Details
Eligible Home Loan Amount
at 8.5% for 20 years
Max EMI
₹0
Total Interest
₹0
Total Payable
₹0
Property Budget
With a typical 20% down payment, the property value you can target is:
What is Home Loan Eligibility?
Home loan eligibility is the maximum amount a lender is willing to sanction you, based mainly on your repayment capacity. Banks won't let your total EMIs swallow your income, so they cap them at a fixed share of your net monthly salary — the FOIR.
The final loan is the lower of two limits: what your income can support (FOIR-based) and what the property value allows (LTV-based). Your credit score, age, and existing EMIs all feed into the number.
Rule of thumb
Most salaried borrowers qualify for a home loan of roughly 55–60× their net monthly income, before adjusting for existing EMIs.
How Eligibility Is Calculated
Loan = Max EMI × [(1+r)ⁿ − 1] ÷ [r(1+r)ⁿ]
Lenders limit your total EMIs to a fixed share of net income (the FOIR). The loan you qualify for is the one whose EMI equals your spare repayment capacity at the given rate and tenure.
Example: ₹80,000 income, no EMIs
Max EMI = 50% × 80,000 = ₹40,000
At 8.5% for 20 yrs → loan ≈ ₹46 lakh
Eligibility by Salary
Approximate loan at 50% FOIR, no existing EMIs, 8.5% interest, 20-year tenure.
| Net monthly income | Eligible loan |
|---|---|
| ₹30,000 | ≈ ₹17 lakh |
| ₹50,000 | ≈ ₹29 lakh |
| ₹75,000 | ≈ ₹43 lakh |
| ₹1,00,000 | ≈ ₹58 lakh |
| ₹1,50,000 | ≈ ₹86 lakh |
* Indicative. Existing EMIs and a higher rate will lower these figures.
What Lenders Check
- →Net income & FOIR — your take-home pay and how much is free for EMIs.
- →Credit score — a CIBIL score of 750+ gets the best rates and limits.
- →Age — tenure is capped to your retirement age (usually 60), so younger applicants get longer tenures.
- →Existing EMIs — car loans, personal loans and card dues all eat into capacity.
- →Employment profile — salaried with a stable employer is viewed more favourably than irregular income.
- →Property value — caps the loan via the LTV ratio (see below).
LTV — How Much the Bank Funds
Even if your income qualifies for more, RBI's Loan-to-Value (LTV) caps limit the loan to a share of the property's value — you fund the rest as down payment:
So for a ₹60 lakh flat, the bank funds up to ₹48 lakh (80%) and you arrange ₹12 lakh plus stamp duty and registration yourself.
Ways to Increase Eligibility
- →Add a co-applicant — a spouse's or parent's income is clubbed, raising the limit.
- →Close existing loans — fewer EMIs free up FOIR capacity.
- →Choose a longer tenure — lowers EMI and lifts the eligible amount.
- →Improve your credit score — a 750+ score earns lower rates and higher limits.
- →Declare extra income — rent, bonuses or incentives strengthen your case.
- →Make a bigger down payment — reduces the loan you need for a given property.
Frequently Asked Questions
Common questions about home loan eligibility