Financial Calculators
Home Loan Eligibility Calculator
Before you shortlist houses, know your borrowing ceiling. Banks compute it from one ratio.
Eligible loan amount (approx.)
₹46,09,234
at an EMI of ₹40,000
- Maximum EMI you can carry
- ₹40,000
- Tenure
- 20 years
Banks cap total EMIs at a share of net income (FOIR), commonly 40 to 55%. Actual sanction depends on the lender's policy, credit score, employer category and property valuation.
These figures are for illustrative purposes only and are not investment advice. Please consult your investment adviser for investment related advice.
The ratio banks actually use
Lenders size your loan from a simple discipline: your total EMIs, existing plus proposed, should not exceed a fixed share of net monthly income, commonly 40 to 55%. That share, the FOIR, sets your maximum EMI; the rate and tenure then convert that EMI into an eligible loan amount.
Knowing this number before house-hunting keeps the search honest and your negotiating position strong. The final sanction also weighs credit score, employer profile and property valuation, so treat this as the well-informed estimate it is.
How the calculation works
Max EMI = net income x FOIR% - existing EMIs\nEligible loan = Max EMI converted to principal at the rate and tenureWorked example: net income of Rs 1,00,000 with Rs 10,000 of existing EMIs, at 8.5% for 20 years and a 50% FOIR: the maximum EMI is Rs 40,000, supporting an eligible loan of about Rs 46,09,234.
Frequently asked questions
How can I increase my eligibility?
Close small existing EMIs, add a co-applicant's income, choose a longer tenure, or improve your credit score. Each lever moves the ceiling.
Should I borrow the maximum I am eligible for?
Rarely. A comfortable EMI leaves room for SIPs, emergencies and life. We generally suggest staying meaningfully below the ceiling.
Does credit score affect eligibility?
Strongly: it influences both the sanction decision and the rate offered, and a better rate itself raises the eligible amount.
Why might the bank's figure differ from this?
Lender-specific FOIR policies, income treatment (bonuses, allowances), and property-level factors all adjust the final sanction.
Borrow with a margin of safety.
We help families size loans that leave room for wealth-building, not just repayment.