Before you start hunting for your dream house, it structurally pays to know exactly how much the bank is willing to lend you. Our Home Loan Eligibility Calculator uses standard Indian banking formulas (FOIR) to instantly estimate your maximum eligible housing loan amount based on your salary and current debts.
How to use the Eligibility Calculator?
1. Gross Monthly Income: Enter your net in-hand monthly salary. If applying with a co-applicant (like a spouse), combine both in-hand salaries.
2. Existing EMIs: Enter total monthly payments for any active bike, car, or personal loans.
3. Rates & Tenure: Adjust the expected interest rate and loan duration. (Longer tenures increase eligibility but cost more in total interest).
The Secret Banking Formula: FOIR
When you walk into an SBI or HDFC branch, the first thing they calculate is your FOIR (Fixed Obligation to Income Ratio). This ratio dictates what percentage of your salary is consumed by debt payments.
Most Indian banks follow a strict rule: Your total monthly EMI commitments (existing active loans + the new home loan EMI) must not exceed 50% to 60% of your gross income. This is to ensure you have enough remaining money for food, utilities, and living expenses.
- If your salary is under ₹50,000, max FOIR allowed is usually 50%.
- If your salary is above ₹50,000, banks might allow an FOIR of up to 60%.
Frequently Asked Questions
1. Add a co-applicant (spouse, parent, or adult child) whose income can be clubbed with yours. 2. Pre-close existing personal/auto loans. 3. Increase the loan tenure (e.g., from 15 years to 25 years), which lowers the monthly EMI requirement.
Absolutely. A calculator assumes you have a flawless credit history. Even if your salary technically qualifies you for a ₹1 Crore loan, a CIBIL score below 700 might cause the bank to instantly reject the application or offer a much smaller amount at a punitive interest rate.
No, RBI regulations mandate a Loan-to-Value (LTV) ratio. Typically, banks will only fund 80% to 90% of the property value. You must arrange the remaining 10% to 20% as a down payment from your own pocket.
Usually, no. Banks heavily prefer fixed, guaranteed income. Variable pay, performance bonuses, and overtime are heavily discounted or outright ignored when calculating FOIR.
Yes, but instead of "In-hand salary", self-employed professionals should input their net profit as per their latest Income Tax Return (ITR), divided by 12 to generate a monthly average.