What is Home Loan Eligibility?
The Home Loan Eligibility Calculator estimates the maximum home loan amount a bank will approve based on your income, existing obligations, and loan terms. Banks use FOIR (Fixed Obligations to Income Ratio) — typically 50-60% — to determine how much EMI you can afford.
The formula is simple: your total EMIs (including the new home loan) should not exceed 50% of your net monthly salary. So if you earn ₹80,000/month and have no existing loans, your maximum EMI capacity is ₹40,000 — which translates to a loan of approximately ₹38-42 Lakhs at 8.5% for 20 years.
Bank-specific eligibility rules: SBI offers up to 90% of property value (up to ₹30L), HDFC up to 80-90%, ICICI up to 80%. Maximum tenure: 30 years (typically capped at retirement age). Minimum age: 21, maximum age at loan maturity: 65-70.
To increase eligibility: (1) Add co-applicant (spouse's income is added), (2) Clear existing loans before applying, (3) Increase tenure to reduce EMI, (4) Improve CIBIL score (750+ gets best rates), (5) Show additional income sources.
Use our Home Loan EMI Calculator to see exact monthly payments, or Income Tax Calculator to check Section 24 and 80C benefits on home loans.
Formula
Maximum EMI = Net Monthly Salary × FOIR − Existing EMIs FOIR = 50% (standard for most banks)
Max Loan = EMI × [(1+r)^n − 1] / [r × (1+r)^n]
Property Budget = Max Loan / 0.80 (assuming 20% down payment)
Example — ₹80,000 salary, no existing EMIs, 8.5%, 20 years: Max EMI = ₹80,000 × 50% = ₹40,000 Max Loan = ₹40,000 × [(1.00708)^240 −1] / [0.00708 × (1.00708)^240] = ₹40,000 × 107.18 = ₹42.87 Lakhs Property budget = ₹42.87L / 0.80 = ₹53.59 Lakhs
Eligibility by salary (8.5%, 20 years): ₹40,000 → ~₹21L loan → ₹27L property ₹60,000 → ~₹32L loan → ₹40L property ₹80,000 → ~₹43L loan → ₹54L property ₹1,00,000 → ~₹54L loan → ₹67L property ₹1,50,000 → ~₹80L loan → ₹1Cr property
How to use this Home Loan Eligibility Calculator?
1. Enter monthly net salary (in-hand after PF and tax deductions). 2. Enter existing EMIs (car loan, personal loan, education loan — anything deducted monthly). 3. Set home loan interest rate (check SBI: 8.50%, HDFC: 8.75%, ICICI: 8.75%). 4. Choose tenure (20 years = 240 months is standard, 30 years max). 5. See your maximum eligible loan, affordable EMI, and total property budget.
Pro tip: Banks also check CIBIL score (700+ required, 750+ for best rates), employment stability (2+ years), and property valuation.