Home Loan Eligibility Calculator India — Check How Much Loan You Can Get

Q: What is FOIR and how do banks use it to decide home loan eligibility?

FOIR (Fixed Obligation to Income Ratio) is the percentage of your net monthly income that banks allow for all loan EMIs combined. Most Indian banks apply 50-60% FOIR for salaried employees. If your net income is ₹80,000 and the bank uses 50% FOIR, your maximum total EMI cannot exceed ₹40,000. Existing EMIs are deducted first, so the remaining amount is your maximum eligible new home loan EMI.

Q: How does credit score affect home loan eligibility in India?

A CIBIL score of 750 or above gives you the best rates and maximum eligibility. Scores between 700-749 may result in a slightly higher interest rate. Scores below 650 may lead to rejection. A good score can help negotiate a higher FOIR (55-60%) with some banks. Maintaining credit card utilisation below 30% and paying all EMIs on time for 12+ months before applying improves your score.

Q: What are RBI's LTV (Loan-to-Value) norms for home loans?

RBI mandates: up to 90% LTV for loans up to ₹30 lakh (minimum 10% down payment), up to 80% LTV for loans between ₹30 lakh and ₹75 lakh (minimum 20% down), and up to 75% LTV for loans above ₹75 lakh (minimum 25% down). Even if your income qualifies you for a higher loan, the bank cannot exceed the LTV cap.

Q: What are the tax benefits of taking a home loan with a co-applicant?

When both co-applicants are also co-owners, each can independently claim Section 24(b) deduction up to ₹2,00,000 on home loan interest (₹4,00,000 total for a couple) and Section 80C deduction up to ₹1,50,000 on principal repayment under the old tax regime. Under the new tax regime, neither deduction is available but the eligibility benefit of higher combined income still applies.

Q: What is PMAY-Urban 2.0 and am I eligible?

PMAY-Urban 2.0 was launched in September 2024 for EWS (annual income up to ₹3 lakh) and LIG (annual income ₹3-6 lakh) categories. It provides central assistance of up to ₹2.5 lakh for construction or purchase of a pucca house. Key conditions: the beneficiary must not own a pucca house anywhere in India, and women ownership or co-ownership is mandatory for EWS/LIG. Apply at pmaymis.gov.in.

Find out exactly how much home loan you are eligible for based on your salary, existing EMIs, and bank FOIR policy. Compare solo vs co-applicant eligibility, calculate the maximum property value you can afford (including stamp duty and registration), and see live rate benchmarks from SBI, HDFC, ICICI, and Kotak for FY 2025-26.

How much home loan can you get based on your salary and existing obligations?

Monthly net income

₹

Take-home salary after all deductions (in-hand amount)

Existing monthly EMIs

₹

Total of all current EMIs (car loan, personal loan, etc.)

Interest rate

% p.a.

Expected home loan rate (SBI: 8.25%, HDFC: 8.35%, ICICI: 8.40%)

Your current age

years

Your age determines the maximum loan tenure

Retirement age

years

Most banks lend until retirement age (typically 58-65)

FOIR (bank policy)

Fixed Obligation to Income Ratio: banks typically allow 50-60% of net income for EMIs

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How to Use This Calculator

Loan Eligibility tab

Enter your monthly net income (take-home salary after all deductions), existing monthly EMIs (car loan, personal loan, credit card EMIs), interest rate, and current age. The calculator applies the FOIR (Fixed Obligation to Income Ratio) to determine your maximum eligible EMI, then uses the PMT inverse formula to calculate the maximum loan amount. Adjust FOIR and retirement age in More Options to see how different bank policies affect your eligibility.

With Co-Applicant tab

Enter your income and your spouse or co-applicant's income. The calculator shows your solo eligibility versus combined eligibility, and the percentage increase a co-applicant provides. Adding an earning co-applicant can increase your eligibility by 40-70% depending on relative incomes.

Property Affordability tab

Based on your eligible loan amount, the calculator works backwards to determine the maximum property value you can target. Enter your down payment percentage (typically 20%) and state to see stamp duty and registration charges included in your total upfront investment.

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The Formula

Home loan eligibility is determined by the FOIR method combined with the loan amortisation formula:

Step 1: Maximum Eligible EMI (FOIR method)
Max EMI = (Net Monthly Income × FOIR%) − Existing EMIs

Where:
FOIR = Fixed Obligation to Income Ratio (banks use 50–60%)
Existing EMIs = sum of all current monthly loan obligations

Step 2: Maximum Loan Amount (PMT inverse)
P = EMI × [(1 + r)ⁿ − 1] / [r × (1 + r)ⁿ]

Where:
P = Maximum loan principal you are eligible for
EMI = Maximum eligible EMI from Step 1
r = Monthly interest rate (annual rate / 12 / 100)
n = Maximum tenure in months

Step 3: Maximum Tenure
Max Tenure = MIN((Retirement Age − Current Age) × 12, 360)
Capped at 360 months (30 years)

Step 4: Maximum Property Value
Max Property Value = Max Loan / (1 − Down Payment %)
Total Upfront Cost = Down Payment + Stamp Duty + Registration Charges

The FOIR ensures your total EMI burden does not exceed a safe proportion of your income. Longer tenures increase eligibility (more months to repay means smaller required EMI per rupee borrowed), but also increase total interest paid.

Example

Rahul — Software engineer in Bengaluru, ₹80,000 take-home salary

Rahul is 30, earns ₹80,000/month net, has a car loan EMI of ₹10,000, and wants to buy a flat in Bengaluru. His wife Priya earns ₹40,000/month with no existing EMIs. Let us calculate their home loan eligibility and what property they can afford.

Step 1: Solo eligibility (Rahul only)

Monthly net income₹80,000

Existing car loan EMI₹10,000

FOIR (bank policy)50%

Max EMI allowed₹80,000 × 50% − ₹10,000 = ₹30,000

Interest rate8.50% p.a. (HDFC)

Max tenure(60 − 30) × 12 = 360 months (30 years)

Step 2: Max loan (solo)

r (monthly rate)8.50% / 12 = 0.7083%

n (months)360

Max loan amount~₹38,60,000 (₹38.6 lakh)

Step 3: Combined eligibility (with Priya)

Combined income₹80,000 + ₹40,000 = ₹1,20,000

Combined EMIs₹10,000 + ₹0 = ₹10,000

Max combined EMI₹1,20,000 × 50% − ₹10,000 = ₹50,000

Combined max loan~₹64,40,000 (₹64.4 lakh)

Eligibility increase+66.8%

Step 4: Property affordability (20% down, Karnataka)

Max loan (combined)₹64,40,000

Down payment (20%)₹16,10,000

Max property value~₹80,50,000 (₹80.5 lakh)

Stamp duty (Karnataka 5%)~₹4,03,000

Registration (1%)~₹80,500

Total upfront funds needed~₹21,00,000

By adding Priya as co-applicant, Rahul can target a ₹80 lakh flat instead of a ₹48 lakh one. Both can independently claim Section 24(b) and 80C deductions under the old tax regime. They need approximately ₹21 lakh ready before loan disbursement for down payment and registration.

FAQ

What is FOIR and how do banks use it to decide home loan eligibility? ▼

FOIR (Fixed Obligation to Income Ratio) is the percentage of your net monthly income that banks allow for all loan EMIs combined, including the new home loan you are applying for. Most Indian banks apply a FOIR of 50% to 60% for salaried employees. If your net income is ₹80,000 and the bank uses 50% FOIR, your maximum total EMI (existing + new home loan) cannot exceed ₹40,000. If you already have a ₹10,000 car loan EMI, your maximum eligible home loan EMI is ₹30,000. Self-employed individuals may face stricter FOIR of 40-50% due to income volatility. A higher credit score (750+) can sometimes help you negotiate a higher FOIR with the bank.

How does credit score affect home loan eligibility in India? ▼

Your CIBIL score (or Experian/Equifax/CRIF score) significantly impacts eligibility. A score of 750 or above gives you the best rates and maximum eligibility. Scores between 700-749 may result in a slightly higher interest rate (0.25-0.50% premium). Scores below 650 may lead to rejection or require a larger down payment. A good score does not directly change the FOIR, but it can help you negotiate: some banks offer a higher FOIR (55-60%) to premium customers with 800+ scores. Check your free CIBIL report annually at cibil.com and resolve any errors before applying. Maintaining credit card utilisation below 30% and paying all EMIs on time for 12+ months before applying will improve your score significantly.

What are RBI's LTV (Loan-to-Value) norms for home loans? ▼

The RBI mandates maximum Loan-to-Value (LTV) ratios that limit how much a bank can lend relative to the property's market value. Current norms (as of FY 2025-26): up to 90% LTV for loans up to ₹30 lakh (minimum 10% down payment), up to 80% LTV for loans between ₹30 lakh and ₹75 lakh (minimum 20% down), and up to 75% LTV for loans above ₹75 lakh (minimum 25% down). This means even if your income qualifies you for a higher loan, the bank cannot lend more than the LTV cap allows. For example, on a ₹1 crore property, the maximum loan is ₹75 lakh regardless of your income. The LTV is applied on the lower of the property's registered value, market value, or bank's technical valuation.

What are the tax benefits of taking a home loan with a co-applicant? ▼

When both co-applicants are also co-owners of the property, each can independently claim tax deductions under the old tax regime. Section 24(b): Each co-owner can claim up to ₹2,00,000 deduction on home loan interest (total ₹4,00,000 combined for a couple) for self-occupied property. Section 80C: Each can claim up to ₹1,50,000 on principal repayment (from the shared ₹1,50,000 80C limit), totalling ₹3,00,000 for a couple. Under the new tax regime (default from FY 2024-25), neither deduction is available — only the eligibility benefit of higher combined income applies. For couples in the 30% tax slab on the old regime, joint ownership with separate deductions can save ₹1.5-2 lakh in annual taxes.

What is PMAY-Urban 2.0 and am I eligible? ▼

PMAY-Urban 2.0 (Pradhan Mantri Awas Yojana – Urban) was launched in September 2024, replacing the original PMAY-Urban scheme that ended in March 2022. It targets EWS (Economically Weaker Section) with annual household income up to ₹3 lakh, and LIG (Low Income Group) with annual income between ₹3 lakh and ₹6 lakh. The scheme provides a central assistance of up to ₹2.5 lakh for construction or purchase of a pucca house (specific subsidy amounts vary by category and state). Key eligibility conditions: the beneficiary or family must not own a pucca house anywhere in India, women ownership or co-ownership is mandatory for EWS/LIG. Middle-income group (MIG) interest subsidies under the old PMAY scheme are not available under PMAY-Urban 2.0. Check eligibility and apply at pmaymis.gov.in.

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