Home Loan Eligibility Calculator
Discover the maximum loan amount banks will sanction based on your monthly income, existing loan obligations, and FOIR affordability ratios.
How Banks Calculate Home Loan Eligibility
Banks and housing finance companies (HFCs) evaluate your repayment capacity using the Fixed Obligation to Income Ratio (FOIR). Most lenders restrict total monthly debt payments (existing EMIs + new home loan EMI) to 40% to 50% of your net in-hand monthly salary.
The remaining 50% to 60% of your income is reserved for household living expenses, food, rent, utilities, and emergency medical cushion.
The Eligibility Math Formula
Maximum sanctionable home loan principal (P) is calculated as:
- FOIR: 40% – 50%
- r: Monthly Interest Rate
- n: Tenure in Months
- P: Maximum Loan Principal
4 Proven Ways to Boost Your Home Loan Eligibility
1. Add a Co-Applicant
Adding your earning spouse, parent, or sibling as a co-applicant pools both incomes together, increasing your borrowing capacity by up to 70% to 100%.
2. Clear Existing Short-term Debts
Closing ongoing personal loans, two-wheeler loans, or credit card EMIs frees up your FOIR threshold, allowing more of your monthly income to count toward your home loan EMI.
3. Choose a Longer Loan Tenure
Opting for a 25 or 30-year tenure lowers the per-month EMI requirement, which immediately increases the maximum loan amount sanctionable by the bank.
4. Maintain a High CIBIL Score (750+)
A credit score above 750 earns preferential interest rates (often 0.25%–0.50% lower) and allows banks to stretch your FOIR limit from 40% up to 55%.
Frequently Asked Questions (Home Loan FAQ)
What is the minimum down payment required for a home loan?
Under RBI rules, banks can fund up to 80% to 90% of the property value (Loan-to-Value / LTV ratio). Borrowers must arrange the remaining 10% to 20% as a down payment (own contribution).
What documents are required for home loan approval?
Salaried applicants require last 3 months salary slips, 6 months bank statement, Form 16 (last 2 years), KYC documents (PAN, Aadhaar), and property title deed / builder allotment letter.
Are women borrowers eligible for lower interest rates?
Yes, most Indian banks and housing finance companies offer a 0.05% (5 bps) interest rate concession if the primary applicant or sole applicant is a woman.
Can I get a tax deduction on home loan repayments?
Under the Old Tax Regime, you can claim up to ₹1.5 Lakh on principal repayment under Section 80C and up to ₹2 Lakh on interest paid under Section 24(b) for self-occupied properties.