What is the Home Loan Eligibility?
A home loan eligibility calculator estimates the maximum loan amount a bank is likely to sanction based on your monthly income, existing EMIs, expected interest rate and tenure. It uses the standard FOIR (Fixed Obligation to Income Ratio) rule banks apply.
Formula
Max EMI = Income × FOIR − Existing EMIs · Eligible loan = PV of (Max EMI, rate, tenure)
- FOIR — Typically 0.50 for salaries under ₹1L/month, up to 0.65 for higher incomes
- PV — Present value of the EMI annuity at the chosen rate and tenure
Step-by-step example
Setup: Monthly income ₹1,00,000, no existing EMIs, 8.5% rate, 20 years.
- Max EMI = 1,00,000 × 0.50 = ₹50,000
- At 8.5% for 240 months, PV of ₹50,000 EMI ≈ ₹57.6 lakh
Answer: Eligible loan ≈ ₹57,60,000
Frequently asked questions
Does my CIBIL score affect eligibility?
Yes. Scores above 750 typically unlock the best rates and full eligibility; below 700 the bank may reduce the FOIR cap or decline.
Can I include my spouse's income?
Yes — a co-applicant's income is added to yours, often nearly doubling eligibility.