Home Loan Eligibility Calculator: How Much Loan Can You Get?

How Banks Calculate Your Home Loan Eligibility

Banks in India use the Fixed Obligation to Income Ratio (FOIR) method to determine how much loan you can afford. FOIR measures what percentage of your monthly income goes toward paying EMIs and other fixed obligations like credit card payments, car loans, and personal loans. The remaining income should be sufficient to cover your living expenses and leave a comfortable margin.

What is the Typical FOIR Ratio?

Most banks cap the FOIR at 40–50% of your net monthly income. This means if you earn ₹1 lakh per month, banks will allow a maximum EMI burden of ₹40,000 to ₹50,000 including all existing loans. Some banks like SBI may allow up to 55–60% for high-income salaried individuals with stable employment in government or large corporates. Our calculator uses the standard 50% FOIR as the baseline, which is the most common threshold for salaried applicants.

How Existing EMIs Affect Your Eligibility

If you are already paying EMIs on a car loan, personal loan, or credit card dues, these amounts are subtracted from your maximum EMI capacity. For example, with a ₹1 lakh salary and ₹15,000 in existing EMIs, your available EMI capacity for a home loan drops to ₹35,000 (50% of income minus existing EMIs). This directly reduces the loan amount you can qualify for. Before applying for a home loan, consider closing smaller outstanding loans to maximize your eligibility.

Tips to Increase Your Home Loan Eligibility

• Add a co-applicant:A working spouse's income can be clubbed with yours, significantly increasing the eligible loan amount.
• Clear existing debts: Pay off credit card dues, personal loans, or other small EMIs before applying. Every ₹10,000 reduction in existing EMIs can increase your loan eligibility by ₹10–12 lakhs.
• Choose a longer tenure: Opting for a 25–30 year tenure reduces the EMI, allowing you to qualify for a higher loan amount. You can always prepay later to reduce the effective tenure.
• Improve your credit score: A CIBIL score above 750 qualifies you for lower interest rates, which translates to a higher eligible loan amount for the same EMI.
• Show all income sources: Include rental income, bonuses, and variable pay with proper documentation. Banks consider up to 50% of variable income.

Frequently Asked Questions

How much home loan can I get on my salary?

Banks typically allow EMI up to 50-60% of your net monthly income (called FOIR). On a ₹1 lakh salary with no other EMIs, you can get approximately ₹52-65 lakh home loan at 8.5% for 20 years.

Does a co-applicant increase home loan eligibility?

Yes, adding a co-applicant (usually spouse) clubs their income with yours, potentially doubling your eligible loan amount. Both incomes are considered for FOIR calculation.

What is FOIR in home loan eligibility?

FOIR (Fixed Obligation to Income Ratio) is the percentage of your monthly income that goes toward EMIs. Banks prefer FOIR below 50-60%. Lower FOIR means higher loan eligibility.