Home Loan Eligibility Calculator
Find out how much home loan you can qualify for based on your income, existing EMIs, interest rate and tenure — using the FOIR method that Indian banks use to assess eligibility.
Check Your Eligibility
Enter your details below to estimate your maximum home loan amount and affordable EMI.
How Home Loan Eligibility Works
Before sanctioning a home loan, every bank needs to be confident you can comfortably repay it. To assess this, they look at how much of your monthly income is already committed to debt and how much can be safely directed toward a new EMI. The central concept they use is the Fixed Obligation to Income Ratio (FOIR) — the maximum percentage of your income allowed to go toward all loan repayments combined.
The FOIR Method Explained
Suppose your net monthly income is ₹80,000 and the bank applies a FOIR of 50%. This means a maximum of ₹40,000 can go toward EMIs each month. If you already pay ₹10,000 on a car loan, only ₹30,000 remains available for a new home loan EMI. That ₹30,000 affordable EMI is then converted into a loan amount using the interest rate and tenure, via the reverse-EMI formula:
Loan = EMI × [(1 + i)n − 1] / [i × (1 + i)n]
where i is the monthly interest rate and n is the number of monthly instalments. A higher affordable EMI, lower interest rate, or longer tenure all increase the eligible loan amount.
Worked Example
With a ₹30,000 affordable EMI, an interest rate of 8.5% per annum, and a 20-year tenure, the eligible loan amount works out to roughly ₹34.7 lakh. Stretching the tenure to 30 years would raise eligibility to about ₹39 lakh because the EMI is spread over more months — though you would pay considerably more total interest over the longer period.
Factors That Affect Your Eligibility
- Income: Higher and more stable income directly raises the loan you qualify for.
- Existing EMIs: Every current loan reduces the income available for a new EMI.
- Interest rate: A lower rate means a given EMI supports a larger loan.
- Tenure: Longer tenures lower the EMI and increase eligibility (but raise total interest).
- Credit score: A strong score can unlock higher FOIR limits and better rates.
- Co-applicant: Adding a spouse or family member combines incomes for higher eligibility.
How to Improve Your Eligibility
If the calculated amount falls short of your needs, there are several practical levers. Add a co-applicant to pool incomes, opt for a longer tenure to reduce the EMI, close or consolidate smaller existing loans to free up FOIR, and work on raising your credit score above 750. Declaring additional income such as bonuses, incentives or rental earnings can also help, as banks consider total documented income when assessing your application.
Note: This calculator provides an estimate based on the FOIR method for educational purposes. The actual sanctioned amount depends on the lender\'s internal policies, property valuation, loan-to-value limits, your credit profile and age. Always confirm the final figures with your bank.
Frequently Asked Questions — Home Loan Eligibility Calculator
Banks calculate eligibility using FOIR (Fixed Obligation to Income Ratio). They allow a fixed percentage of your monthly income — typically 40% to 55% — to go toward all EMIs combined. After subtracting your existing EMIs, the remaining amount becomes the maximum EMI you can afford. That EMI is then converted into a loan amount using the interest rate and tenure you choose.
FOIR, or Fixed Obligation to Income Ratio, is the share of your monthly income that lenders permit to be used for loan repayments. A FOIR of 50% means at most half your income can go toward EMIs. Lower FOIR limits protect you from over-borrowing, while higher-income applicants are sometimes allowed a higher FOIR because they retain more disposable income.
You can boost eligibility by adding a co-applicant (such as a spouse) to combine incomes, choosing a longer tenure to reduce the EMI, clearing existing loans to free up FOIR, improving your credit score, and declaring all income sources like bonuses or rental income. Reducing other monthly obligations directly increases the EMI you can afford.
Yes, significantly. A high credit score (typically 750+) improves your chances of approval, may qualify you for a lower interest rate, and can allow a higher FOIR. A low score may lead to rejection, a smaller sanctioned amount, or a higher rate — all of which reduce how much you can borrow. Check and improve your score before applying.
A longer tenure lowers your monthly EMI and increases the loan amount you qualify for, but you pay much more total interest over the life of the loan. A shorter tenure means higher EMIs and lower eligibility, but far less interest paid. Most home loans run 15–30 years; pick the shortest tenure whose EMI you can comfortably afford.
No. This calculator gives a realistic estimate using the FOIR method, but the actual sanctioned amount depends on the bank's policies, your credit score, property valuation, employment stability, age, and loan-to-value limits (usually 75–90% of property value). Treat the result as a planning guide, then confirm with your lender.