Home Loan Eligibility Calculator

What is FOIR?

Fixed Obligation to Income Ratio (FOIR) is the percentage of your monthly income that goes toward servicing debt obligations (EMIs, credit card payments, etc.). Banks in India typically allow a maximum FOIR of 50% — meaning your total EMIs (including the proposed home loan) should not exceed 50% of your net monthly income. Some banks may allow up to 55-60% for high-income earners.

How Banks Assess Home Loan Eligibility

Banks consider several factors: your net monthly income, existing financial obligations, age (loan tenure can't extend beyond retirement age, typically 58-60 for salaried), employment stability, credit score (CIBIL 750+ is ideal), and the property's value. Co-applicants (spouse) can increase eligibility significantly. Your Salary Calculator can help you understand your net take-home pay.

Tips to Improve Your Eligibility

To increase the loan amount you're eligible for: clear existing loans or credit card dues before applying, add a co-applicant with independent income, choose a longer tenure (this reduces EMI and improves FOIR), improve your credit score by paying bills on time, and consider a joint home loan with your spouse. Even clearing a ₹5,000/month car loan can increase home loan eligibility by ₹5-6 lakhs.

Down Payment & Property Budget

Banks finance up to 75-90% of the property value (LTV ratio). For homes up to ₹30 lakh, LTV can be 90%; for ₹30-75 lakh, it's 80%; above ₹75 lakh, it's 75%. This means you need a down payment of 10-25%. This calculator recommends a property budget assuming you can arrange a 20% down payment. Don't forget to budget for stamp duty and registration charges — typically 7-10% extra.

Compare Loan Offers

Once you know your eligibility, get quotes from multiple banks. Even a 0.25% difference in rate can save lakhs over 20 years. Use our Loan Comparison Calculator to compare offers, and the EMI Calculator to see detailed repayment schedules.

Frequently Asked Questions