Home Loan Eligibility Calculator

Before you shortlist a flat, it helps to know how big a home loan banks are likely to give you. Lenders mainly look at how much of your monthly income can go towards EMIs, called FOIR (Fixed Obligation to Income Ratio). This calculator uses the same approach to estimate your eligible loan, the property price it supports and the down payment you will need.

How to use the home loan eligibility calculator

1. Enter your net monthly income (take-home pay). Add a co-applicant's income if you plan to apply jointly.
2. Enter your existing EMIs on car, personal or other loans.
3. Enter the expected interest rate and tenure.
4. Set the share of income the bank allows for all EMIs. Many banks use 50%, and some go up to 60% for higher incomes.

How eligibility is worked out

Maximum new EMI = Income × FOIR − Existing EMIs
Eligible loan   = The loan that this EMI can repay at the given rate and tenure
Property price  = Eligible loan ÷ Loan-to-value (LTV) limit

RBI limits how much of a property's value banks can lend: up to 90% for loans up to ₹30 lakh, 80% for loans from ₹30 lakh to ₹75 lakh, and 75% above ₹75 lakh. The rest is your down payment.

Example

Your take-home pay is ₹1,00,000 a month and you pay ₹10,000 in other EMIs. The bank allows 50% of income for EMIs, at 8.5% for 20 years.

• Maximum new EMI = 50,000 − 10,000 = ₹40,000
• Eligible home loan = ₹46,09,234
• Property price you can target (80% LTV) = ₹57,61,542
• Down payment needed = ₹11,52,308

How tenure changes eligibility

Same ₹40,000 EMI at 8.5%:

How to improve your eligibility

• Add a co-applicant with income, such as a spouse or parent.
• Close small loans before applying, since every EMI reduces your limit.
• Keep a good credit score, which can also get you a lower rate.
• Choose a longer tenure, then prepay when you can to save interest. See the loan prepayment calculator.