Home Loan Eligibility Calculator
| Tenure | Max Loan | Max EMI | Total Interest |
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What This Tool Does
This calculator estimates the maximum home loan amount you may qualify for, based on your monthly income, existing loan obligations, the interest rate, and your chosen tenure — using the same general method most lenders apply.
You can also use this NPS Vatsalya Calculator.
How It's Calculated
Lenders typically cap your total EMI obligations (existing plus the new home loan) at a percentage of your monthly income, known as FOIR (Fixed Obligation to Income Ratio) — commonly somewhere between 40% and 65%, depending on the lender and income bracket.
Step 1 — Find the maximum EMI you can take on: Max EMI = (Monthly Income × FOIR%) − Existing EMI Obligations
Step 2 — Convert that EMI into a loan amount using the standard EMI formula, solved for principal: Loan Amount = EMI × [(1+r)ⁿ − 1] ÷ [r × (1+r)ⁿ], where r is the monthly interest rate and n is the number of months.
Worked example: Monthly income ₹80,000, existing EMIs of ₹10,000, an assumed FOIR cap of 50%, an interest rate of 8.5% p.a., over a 20-year tenure.
- Max EMI: (80,000 × 50%) − 10,000 = 40,000 − 10,000 = ₹30,000
- Monthly rate: 8.5% ÷ 12 ≈ 0.708%
- Number of months: 20 × 12 = 240
- Applying the formula: eligible loan amount ≈ ₹34.6 lakh
Current home loan rates in India generally range from around 7.5% to 9% p.a., varying by lender, loan amount, and credit score.
Edge Cases and Special Rules
- FOIR varies by lender and income band: Higher-income applicants are often allowed a higher FOIR (sometimes 55–65%), while lower-income applicants may be capped closer to 40%, since a larger share of lower incomes typically goes to essential expenses.
- Adding a co-applicant increases eligibility: Combining income with a co-applicant (like a spouse) raises the total income used in the calculation, which can meaningfully increase the eligible loan amount.
- Age affects maximum tenure: Loans generally must be scheduled to end by a set age — often 60–70 depending on the lender and whether you're salaried or self-employed — which can shorten the available tenure for older applicants and reduce eligibility.
- Existing EMIs reduce eligibility directly: Any ongoing loan or credit card EMI is subtracted before calculating what's available for a new home loan.
- Credit score affects both eligibility and rate: A lower credit score can mean a higher interest rate offered, a lower eligible amount, or both.
Eligibility Varies by Lender
Because FOIR limits, income assessment methods, and maximum age cutoffs are set individually by each bank, the same applicant can see meaningfully different eligibility figures from SBI, HDFC, ICICI, Axis, or a smaller lender. Self-employed applicants are also often assessed differently from salaried ones — typically based on averaged income from recent tax returns rather than a fixed monthly salary slip — which can shift eligibility further.
Who Uses This
- Prospective home buyers wanting to know their budget before house-hunting
- Applicants comparing eligibility across multiple lenders before applying
- Couples or family members checking combined eligibility as co-applicants
- Self-employed individuals estimating how their income assessment might differ from a salaried applicant's
Loan Eligibility vs. EMI Affordability
These aren't the same thing, and conflating them is a common mistake. Loan eligibility is what a lender's formula says you qualify for, based on income and existing obligations. EMI affordability is a personal judgment: what monthly payment you're actually comfortable committing to for the next 15–20 years, accounting for other goals and expenses a lender's formula doesn't see. It's entirely possible — and often wise — to borrow less than your maximum eligibility.
FAQ
What is FOIR?
Fixed Obligation to Income Ratio — the percentage of your income lenders allow toward all EMI obligations combined, including the new loan.
Does adding a co-applicant increase my eligibility?
Yes — combining incomes raises the total income the lender bases the calculation on, generally increasing the eligible loan amount.
Does my credit score affect eligibility?
Yes — it can influence both the interest rate you're offered and, in some cases, the maximum amount a lender is willing to approve.
Is there a maximum age limit for a home loan?
Most lenders require the loan to be fully repaid by a certain age (commonly 60–70), which can reduce the available tenure for older applicants.
Why do different banks show different eligibility for the same income?
Each lender sets its own FOIR limits, income assessment method, and age cutoffs, so results can vary meaningfully between banks.
Try It Above
Enter your monthly income, existing EMI obligations, desired tenure, and interest rate in the calculator above to get an estimated loan eligibility. Figures are indicative only — your actual eligibility depends on the specific lender's policies and full underwriting assessment.