Home Loan Eligibility Calculator

How lenders decide your home loan eligibility

Banks and housing-finance companies don't lend against your dreams — they lend against your repayment capacity. The main gauge is the FOIR (Fixed Obligation to Income Ratio): the share of your monthly income that can go toward all EMIs combined. Most lenders cap total EMIs at 40–55% of net income, with higher earners allowed the upper end.

The eligibility formula

The calculator works backwards from the EMI you can afford:

1. Affordable EMI = (net monthly income × FOIR) − your existing EMIs.
2. That EMI is then converted into a loan amount using the standard reducing-balance formula for your rate and tenure.

What raises or lowers your eligibility

• Longer tenure → lower EMI → higher eligibility (but more total interest — check it on the home loan calculator).
• Lower interest rate → higher eligibility for the same EMI.
• Existing EMIs (car, personal, credit-card) directly reduce how much you can borrow — clearing a personal loan before applying helps.
• Co-applicant — adding a spouse's income can substantially raise the sanctioned amount.
• Credit score — a score above 750 improves both approval odds and the rate you're offered.

How much home loan on a ₹50,000 salary? And ₹1 lakh?

This is the question the calculator is really answering, so here it is directly. At 9% over 20 years with a 50% FOIR and no existing EMIs:

• ₹25,000/month → EMI ₹12,500 → loan about ₹13.9 lakh
• ₹50,000/month → EMI ₹25,000 → loan about ₹27.8 lakh
• ₹75,000/month → EMI ₹37,500 → loan about ₹41.7 lakh
• ₹1,00,000/month → EMI ₹50,000 → loan about ₹55.6 lakh
• ₹1,50,000/month → EMI ₹75,000 → loan about ₹83.4 lakh

The relationship is linear: eligibility is just your affordable EMI multiplied by a factor set by the rate and tenure. At 9% for 20 years that factor is about 111 — so a rough mental shortcut is eligible loan ≈ affordable EMI × 111. The full table above runs at whatever rate, tenure and FOIR you enter, which matters because that multiplier moves a long way with both.

The loan is not the budget: LTV and your down payment

An eligible loan of ₹55.6 lakh does not mean a ₹55.6 lakh flat. Lenders fund a percentage of the property value — the loan-to-value ratio — and you fund the rest:

• Property up to ₹30 lakh — typically up to 90% funded
• ₹30–75 lakh — typically up to 80%
• Above ₹75 lakh — typically up to 75%

So a ₹55.6 lakh eligibility at 80% LTV supports a property of roughly ₹69.5 lakh — the last column of the table. But you must bring the remaining ₹13.9 lakh in cash, plus stamp duty and registration (commonly 5–8% of value, varying by state), plus processing fees. The cash you need is frequently the real constraint, not the eligibility.

Why two people on the same salary get different offers

Eligibility is not a formula the whole industry shares. On identical income, these move the number:

• Age and remaining working years. Tenure is usually capped at retirement. A 30-year-old may get 30 years; a 50-year-old may get 10, and that alone can halve the eligible amount for the same EMI.
• Credit score. Below roughly 700 the file may be declined outright or priced higher, which shrinks eligibility through the rate.
• Employer category. Many lenders grade employers, and a listed-company or government salary can earn a more generous FOIR than the same salary elsewhere.
• Income type. Salaried applicants are assessed on net pay; self-employed applicants on declared profit after depreciation — often far below what the business actually earns.
• Variable pay. Bonus and incentive income is frequently discounted or ignored entirely.

Adding a co-applicant

Adding an earning co-applicant lets the lender assess your incomes together, and it is the single most effective way to raise eligibility. Two people on ₹50,000 each are usually assessed close to a ₹1,00,000 applicant — roughly doubling the eligible loan from about ₹27.8 lakh to ₹55.6 lakh on the defaults here.

Two conditions in practice: the co-applicant normally has to be a co-owner of the property, and their existing EMIs join the FOIR calculation too. A co-applicant carrying a large car loan can add less than you expect. Where both are co-owners and co-borrowers, each can also claim the home loan tax deductions separately — see the home loan tax benefit calculator.

Eligibility is not the whole story

Lenders also apply a Loan-to-Value (LTV) cap, funding only about 75–90% of the property's value — so you need a down payment of 10–25%. Whatever you're eligible for, borrow what you can comfortably repay: once you know your target loan, model the EMI and full schedule on the EMI calculator before committing. For a step-by-step walk-through with worked salary examples, read our guide: How much home loan can you get on your salary?