Home Loan Eligibility Calculator India

Home Loan Eligibility Calculator

Before you start hunting for your dream house, you need to know exactly how much a bank is willing to lend you. Applying for a loan without knowing your eligibility can lead to rejection, which severely damages your CIBIL credit score.

Our Home Loan Eligibility Calculator uses standard banking algorithms (like FOIR) to estimate the maximum loan amount you can get approved for based on your current income and liabilities.

How Banks Calculate Eligibility: The FOIR Method

Banks primarily use the Fixed Obligation to Income Ratio (FOIR) to determine your loan eligibility.

FOIR ensures that a significant portion of your salary is left for your daily living expenses. Typically, banks mandate a FOIR of 50% to 60%. This means the bank will ensure that the sum of:

1. Your new Home Loan EMI
2. Any existing Personal Loan EMIs
3. Any existing Car Loan EMIs ...does not exceed 50% to 60% of your net monthly take-home salary.

Example: If your take-home salary is ₹1,00,000, the bank expects your total EMIs to be capped at ₹50,000. If you already pay ₹10,000 for a car loan, they will only approve a home loan amount whose EMI is ₹40,000 or less.

Factors That Increase Your Eligibility

If you need a higher loan amount than you are currently eligible for, you can use these strategies:

• Add a Co-Applicant: Add your earning spouse or parent as a co-applicant. The bank will merge both your net salaries, massively increasing your eligibility and the maximum loan amount.
• Increase the Tenure: Opting for a 30-year tenure instead of a 20-year tenure reduces the monthly EMI, allowing you to fit a larger loan amount within your 50% FOIR limit.
• Clear Existing Debt: Pay off and close any small personal loans, car loans, or massive credit card debts before applying for the home loan to free up your FOIR limit.

Frequently Asked Questions