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.
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.